State of Wisconsin
Legislative Audit Bureau
February 9, 2011
The Honorable, The Legislature:
We have completed our financial audit of the University of Wisconsin (UW) System for the years ended June 30, 2010 and 2009. UW System's financial statements and our unqualified audit opinion on them, dated December 10, 2010, have been included in UW System's 2010 Annual Financial Report, which is enclosed. This report will be presented to the UW Board of Regents at its meetings on February 10 and 11.
UW System unrestricted net assets, which represent the amount available to be used to meet ongoing obligations, increased by $120.2 million to $502.7 million as of June 30, 2010. According to UW System officials, these funds have been designated by the Board of Regents for purposes to fulfill UW System's responsibilities, including academic and research programs and capital projects.
General Purpose Revenue (GPR), which is shown as State Appropriations on UW System's financial statements, decreased 3.7 percent, from $1,012.1 million in fiscal year (FY) 2008-09 to $974.4 million in FY 2009-10. This funding does not include GPR funding that is used to repay debt on academic facilities, which is technically debt of the State of Wisconsin and not UW System. Such debt service payments totaled $52.7 million for FY 2009-10 and $123.9 million for FY 2008-09.
Operating revenues increased by $237.7 million, or 8.3 percent, from FY 2008-09. Federal grants and contracts revenue accounted for the largest portion of this change, increasing from $733.4 million in FY 2008-09 to $813.3 million in FY 2009-10. We also note that tuition and fees increased by $73.1 million.
UW System's total operating expenses were $4.1 billion in FY 2009-10. Operating expenses increased by $92.5 million, or 2.3 percent from FY 2008-09. Salaries and fringe benefits increased by $67.5 million and supplies and services expenditures decreased by $27.3 million. Salaries and fringe benefits represented 66.7 percent of all UW System operating costs, while supplies and services accounted for 25.0 percent.
Enclosed is a management letter, which includes an auditor's report on compliance and internal control over financial reporting, as required by Government Auditing Standards. This letter was provided to the UW System and includes four internal control concerns we identified during our audit and that are required to be reported under these standards.
Sincerely,
janice mueller
State Auditor
__________________
State of Wisconsin
Office of the Governor
February 1, 2011
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Darling, Alberta,
of River Hills, as a member of the College Savings Program Board, to serve for the term ending May 1, 2013.
Respectfully submitted,
SCOTT WALKER
Governor
Read and referred to committee on Agriculture, Forestry, and Higher Education.
__________________
Relating to the regulation of professional boxing contests.
Submitted by Department of Regulation and Licensing.
S110
Report received from Agency, February 8, 2011.
Referred to committee on Labor, Public Safety, and Urban Affairs, February 9, 2011.
Relating to the regulation of mixed martial arts sporting events.
Submitted by Department of Regulation and Licensing.
Report received from Agency, February 8, 2011.
Referred to committee on Labor, Public Safety, and Urban Affairs, February 9, 2011.
