Legislative Audit Bureau
December 20, 2011
The Honorable, The Legislature:
We have completed a review of the Department of Health Services' (DHS's) Medical Assistance program, as requested by the Joint Legislative Audit Committee. Total Medical Assistance expenditures increased from $5.0 billion in fiscal year (FY) 2006-07 to $7.5 billion in FY 2010-11, primarily because the number of recipients increased from 870,201 in January 2007 to 1.2 million in January 2011.
DHS has increasingly relied on vendors to provide administrative support to the program, and vendor payments increased from $66.2 million in FY 2006-07 to $114.8 million in FY 2010-11. DHS has not always adequately assessed costs before contracting with vendors, and its extensive reliance on vendors raises concerns about DHS's ability to provide adequate program oversight. We include recommendations for DHS to improve its contracting and oversight practices.
Most recipients receive services through subprograms, such as BadgerCare Plus, which are often provided through managed care arrangements. It is widely believed that providing services through such arrangements is cost-effective. However, an estimated $3.6 billion, or 51.2 percent of all Medical Assistance expenditures, were incurred on a fee-for-service basis in FY 2009-10. We include a recommendation for DHS to consider enrolling recipients in managed care plans more quickly.
DHS's budgeting and financial management practices have not kept pace with the growth and increasing complexity of the Medical Assistance program, and DHS has not been able to readily produce the type of management information that is desired by legislators and needed for effective management. For example, DHS does not include all Medical Assistance expenditures as part of the program's budget or record them as the program's expenditures. In addition, it neither budgets nor routinely accounts for expenditures on a subprogram basis, which is typically how legislators and others deliberate the program. We include recommendations for DHS to better account for all Medical Assistance expenditures and to budget and track these expenditures by subprogram.
The federal Patient Protection and Affordable Care Act will impact Medical Assistance funding and participation, but its overall effects are difficult to predict because many provisions of the Act will not become effective until 2014. We include a recommendation for DHS to report to the Joint Legislative Audit Committee by January 2013 when more will be known about the likely effects of the Act.
We appreciate the courtesy and cooperation extended to us by DHS, health care providers, and other groups in completing this evaluation. DHS's response follows the appendices.
Sincerely,
joe chrisman
State Auditor
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State of Wisconsin
Legislative Audit Bureau
December 16, 2011
The Honorable, The Legislature:
We have completed a financial audit of the State of Wisconsin Educational Communications Board (ECB) to meet our audit requirements under s.
13.94, Wis. Stats., and as requested by ECB to fulfill the audit requirements of the Corporation for Public Broadcasting. The Corporation requires audited financial statements of public broadcasting entities to determine future funding levels. Our audit report contains ECB's financial statements and related notes as of and for the year ended June 30, 2011.
ECB, which is an agency of the State of Wisconsin, operates a television network of 5 digital stations and two radio networks consisting of 14 FM stations and 1 AM station. The financial activity of the Wisconsin Public Broadcasting Foundation, Inc., which was organized by ECB for the exclusive purpose of raising funds for its television and radio networks, is included as part of ECB's financial statements. ECB reported a total of $20.5 million in support and revenue during fiscal year 2010-11, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
We were able to issue an unqualified independent auditor's report on ECB's financial statements. In our report on internal control and compliance, we note that ECB continues to take steps to improve its financial reporting process and we identify additional areas for it to consider as part of that process.
We appreciate the courtesy and cooperation extended to us by ECB staff during the audit.
Sincerely,
joe chrisman
State Auditor
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Wisconsin Technical College System
December 16, 2011
The Honorable, The Legislature:
This letter certifies that all sixteen Wisconsin Technical Colleges have provided sexual assault and harassment orientation, materials and information to students as required on state statute 38.12(11)(c) for the 2010-2011 school year.
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Individual college letters assuring compliance are on file at the WTCS office. If you have any questions or need additional information, please contact Norman Kenney, Associate Vice President - Management Services, at 266-1766.
Sincerely,
daniel clancy
President
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Wisconsin Economic Development Corporation
December 22, 2011
The Honorable, The Legislature:
Pursuant to Ch. 238.07, Wis. Stats., the Wisconsin Economic Development Corporation is required to submit an annual plan to the Wisconsin Legislature by January 1, 2012.
Special Session Act 7 created the new Wisconsin Economic Development Corporation (WEDC), a public-private corporation to replace the state Department of Commerce. The primary purpose of this initiative was the creation of an entity which will be devoted exclusively to economic development activities in Wisconsin. The new WEDC is authorized to develop and implement economic programs to provide business support, expertise and financial assistance to companies that invest and create jobs in Wisconsin, and to support new business start-up and business expansion.
This report includes a summary of WEDC's Operations Plan which was approved by the WEDC Board of Directors on October 11, 2011. To read the Operations Plan in its entirety, go to: WEDC.org/operations-plan.
Sincerely,
paul jadin
Secretary
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State of Wisconsin
Department of Revenue
December 19, 2011
The Honorable, The Legislature:
I am submitting the quarterly report of the Wisconsin Lottery for the quarter ending June 30, 2011, as requried by s.
565.37(3), Wis. Stats. The attached materials contain unaudited Wisconsin Lottery year-to-date Revenue and Expenditure information.
Lottery sales were $133.5 million for the quarter, up 5.2% from the same quarter last year. For the year, sales are at $502.6 million, up 4.4% over last year.
The information reported here is a summary and is not intended to be a complete financial accounting of Wisconsin Lottery operations.
If you have any questions or comments regarding this report, please feel free to contact me at (608) 266-6466.
Sincerely,
richard g. chandler
Secretary
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State of Wisconsin
Department of Natural Resources
December 20, 2011
The Honorable, The Legislature:
It's my pleasure to share with you some of the successes we are seeing with Wisconsin's electronics recycling program, E-Cycle Wisconsin. This program, which expands electronics recycling options for Wisconsin households and schools with financial support from electronics manufacturers, is helping create jobs in our state and reducing costs for local taxpayers.
E-Cycle Wisconsin is an example of public-private partnerships at their best. The law sets basic ground rules and minimum standards for a statewide recycling program and then gives electronics collectors, recyclers and manufacturers flexibility to set up an efficient, effective system that fits their business models. Wisconsin-based recyclers have been able to expand their facilities and hire more workers thanks to the increased volume of electronic recovered through E-Cycle Wisconsin. Recyclers registered under the program have worked with local governments and schools to reduce their electronics recycling costs, saving taxpayers money.
With more than 400 collection sites in 68 of the state's 72 counties, E-Cycle Wisconsin is making it easier for us all to properly recycle the old TVs, computers and VCRs sitting in our basements and closets. During the most recent program year, Wisconsin households and schools recycled more than 35 million pounds of electronics, allowing the metal, plastic and glass to be used in new manufacturing rather than sitting in a landfill. That's about 6.2 pounds per person, one of the highest collection rates in the nation.
Enclosed are three documents with more information. Attachment 1 is a brief summary of results from E-Cycle Wisconsin's most recent program year. Attachment 2 is a report required under s.
287.17(10)(cm), Wis. Stats., regarding how manufacturer recycling targets are set under the program. Attachment 3 is a report on electronics recycling in Wisconsin schools required under
2009 Wisconsin Act 50, the electronics recycling law.
If you have any questions, please do not hesitate to contact Ann Coakley, director of our Waste and Materials Management Program, at (608) 261-8449.
Sincerely,
cathy stepp
Secretary
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State of Wisconsin
Department of Safety and Professional Services
December 20, 2011
The Honorable, The Legislature:
It is with great pleasure that I submit to you the 2009-2011Biennial Report for the Department of Safety and Professional Services (DSPS).The past year has been a period of major transition for the DSPS, which was formed through the merger of the former Department of Regulation and Licensing and parts of the former Department of Commerce under
2011 Wisconsin Act 32. The first half of this year was filled with extensive planning to bring these two agencies together. During the second half of this year, the focus has shifted to implementing the new consolidated agency and developing resulting efficiencies. We look forward as an agency, in the years ahead, to providing an increased level of customer service and efficiency as our contribution to growing Wisconsin's culture for job creation.
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Our biennial report is a snapshot of some of the department's recent accomplishments,as well as a preview of some of the goals and objectives we will be working toward in the near future. I would like to take this opportunity to thank the Governor, members of the Legislature, our employees and stakeholders who have all been supportive of the creation of this new agency.
Sincerely,
Dave Ross
Secretary
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State of Wisconsin
Office of the Governor
December 13, 2011
The Honorable, The Senate:
I am pleased to nominate and with the advice and consent of the Senate, do appoint Cummings, Norman,
of Brookfield, as a member of the State of Wisconsin Investment Board, to serve for the term ending May 1, 2017.
Respectfully submitted,
SCOTT WALKER
Governor
Read and referred to committee on Financial Institutions and Rural Issues.
