A424
Prison Industries had a cash deficit of $3.1 million through the Second quarter ending December 31, 1994. The actual cash expenditure for the time period was $7,775,314. Revenues for the same time period were $4,655,224. Prison Industries have adequate fixed assets, inventories and receivables to cover the overdraft. The cash deficit is attributable to an uncommonly large accounts receivable during this time period. In addition, raw materials for Dodge Correctional expansion were purchased during this time period. Manufacturing and shipping of the products will not be completed during this same quarter.
The projected profit on the accrual basis for the fiscal year ending June 30, 1995 is $575,000.
Sincerely,
Michael J. Sullivan
Secretary, DOC
James R. Klauser
Secretary, DOA
__________________
State of Wisconsin
Department of Corrections
Madison
July 14, 1995
To the Honorable, the Legislature:
This is the annual report on Prison Industries for the fiscal year ending on June 30, 1994, as required by Wisconsin Statutes 303.018. This report includes the cash balance of each industry and the total amounts expended by state agencies for wood furniture and printing. It also shows what portion of the total wood furniture and printing state agencies purchased from prison Industries and includes year-end cash balance.
The cash deficit decreased by $1,159,795 (from $4,087,459 to $2,927,664) in fiscal year 1994. Total assets of plant, equipment and inventories of $5,925,529 exceed the cash deficit by $2,997,865.
See Appendix A for a summary of the cash balance for each industry and the overall financial condition of Prison Industries.
The net income on the accrual accounting basis was $1,089,234 for the fiscal year ending June 30, 1994.
State agencies spent $3,892,458 on wood furniture in FY 94. Of that amount, $729,975 or 19% was purchased from Prison Industries. During the same period, state agencies purchased $38,088,655 in printing from all sources. Of that amount, $1,096,415 or 3% was purchased from Prison Industries. State printing bulletins now require that all forms for which Prison Industries has negotiated a contract be purchased from Prison Industries. Appendix B provides comparisons with FY 93.
Sincerely,
michael sullivan
Secretary, DOC
James R. Klauser
Secretary, DOA
__________________
State of Wisconsin
Department of Corrections
Madison
July 27, 1995
To the Honorable, the Legislature:
Re: CLAIMS UNDER SECTION 227.485 AND 814.245, WISCONSIN STATUTES
The Department of Corrections has no claims under the above to report for the fiscal year ending June 30, 1995. Our legal counsel personnel have reviewed settlements during FY 95 and have determined that none apply to ss.
227.485 and
814.245 of the Wisconsin Statutes.
Sincerely,
michael J. sullivan
Secretary, DOC
