February 1, 2001
The Honorable, The Legislature:
This biennial report on the operations and performance of the Legislative Audit Bureau covers the period January 1, 1999 through December 31, 2000. It summarizes the Bureau's statutory responsibilities, significant developments affecting the Bureau, and reports released during the past two years and is required under s.
13.94(1)(j), Wis. Stats.
The Bureau conducts financial and program evaluation audits to assist the Legislature in its oversight of executive branch agencies. The Bureau's reports are received and reviewed by the Joint Legislative Audit Committee, whose 1999-2000 members were:
Senator Gary R. George, Co-chairperson
Senator Judith Robson
Senator Brian Burke
Senator Peggy Rosenzweig
Senator Mary Lazich
Representative Carol Kelso, Co-chairperson
Representative Stephen Nass
Representative John Gard
Representative Robert Ziegelbauer
Representative David Cullen
In total, we released 42 numbered reports during the biennium, as well as several dozen other documents of a narrow scope or intended for a limited audience. We make every effort to deliver accurate, timely, and useful analyses that enhance the accountability of state government, and we look forward to serving the Legislature, the Governor, and the people of Wisconsin in the coming years.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Legislative Audit Bureau
February 15, 2001
The Honorable, The Legislature:
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At the request of several legislators including Senator George, who first requested it, we have performed a limited review of the State's settlement with Fort James Corporation for natural resource damages to the Fox River. A legal settlement between the Department of Natural Resources (DNR), the Wisconsin Department of Justice, and Fort James Corporation stipulated that the State will not sue Fort James for natural resource damages arising from the release of polychlorinated buphenyls (PCBs) into the Fox River. In exchange, Fort James has agreed to provide or fund several environmental restoration projects at a cost that has been estimated to be $7.0 million. The settlement agreement, which was signed November 15, 2000, is subject to acceptance by the United States District Court for the Eastern District of Wisconsin.
Several aspects of the settlement agreement have been controversial, including the confidential nature of the negotiations that preceded the settlement; the use of consultants paid for by Fort James and other paper companies to value the environmental damages for which the State and local governments are to be compensated; the models used to value the environmental losses sustained; and the objections raised by the U.S. Fish and Wildlife Service, whose staff were not included in the negotiations. However, DNR strongly defends its approach as reasonable and effective. Based on our review, we have identified several issues that are contentious, may result in limited opportunities for legislative oversight, or are unresolved at this time.
We appreciate the courtesy and cooperation extended to us by DNR, the Department of Justice, and the Fish and Wildlife Service in conducting this review.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Legislative Audit Bureau
February 16, 2001
The Honorable, The Legislature:
We have completed a review of Employment Solutions, Inc. (ESI) and 15 other Wisconsin Works (W-2) agencies as part of a comprehensive audit of the state wide implementation of the W-2 program. We have identified charges for out-of-state work and other unallowable and questioned expenditures by ESI that are similar to those we identified for Maximus, Inc., an agency that also administers the W-2 program in Milwaukee County.
We identified $270,268 in unallowable costs that were related to ESI's activities outside of Wisconsin but charged to the W-2 program. Most were related to unsuccessful efforts to acquire a contract for administration of Arizona's welfare-to-work program. Our findings suggest the extent of ESI's out-of-state activities was greater than the agency had indicated.
Among $3.6 million in additional transactions for ESI, we identified $35,899 in unallowable cots and questioned another $61,234 in expenditures charged to the w-2 program. Unallowable and questioned transactions include expenditures for entertaining ESI employees, advertising, legal services, local hotel charges,and a variety of restaurant and other food charges.
We also reviewed staff performance incentives that were charged to the W-2 program by three agencies in 1999. ESI provided substantially higher incentives that the other agencies, partly because ESI has chosen to make a portion of employees' compensation contingent upon performance. ESI's incentives averaged $9,635 each for the 84 employees receiving them. ESI's chief executive officer received a total of $61,645 in 1999; that amount reflects incentive payments for performance in 1998 and 1999.
Finally, we identified $12,604 in unallowable costs and $114,487 in questioned costs made by six other W-2 agencies.
We appreciate the courtesy and cooperation extended to us by the W-2 agencies and the Department of Workforce Development during the course of our review.
Sincerely,
Janice Mueller
State Auditor
State of Wisconsin
Department of Administration
February 12, 2001
The Honorable, The Legislature:
This report is transmitted as required by sec. 20.002(11)(f) of the Wisconsin Statutes, (for distribution to the appropriate standing committees under sec. 13.172(3) Stats.), and confirms that the Department of Administration has found it necessary to exercise the "temporary reallocation of balances" authority provided by this section in order to meet payment responsibilities and cover resulting negative balances during the month of January 2001.
On January 1, 2001, the Wisconsin Health Education Loan Repayment Fund balance was -$11 thousand. This shortfall increased to -$13 thousand on January 17, 2001, decreased to -$2 thousand on January 24, 2001, and continued into the month of February. As of the date of this letter, it is expected to be resolved soon. This shortfall is due to the timing of revenues.
On January 1, 2001 the Utility Public Benefits Fund balance was -$3.18 million. This shortfall decreased to -$1.76 million on January 4, 2001, increased to -$2.13 million on January 11, 2001, to -$3.08 million on January 23, 2001, to -$4.24 million on January 30, 2001, and continued into the month of February. As of the date of this letter, it is expected to be resolved soon. This shortfall is due to the timing of revenues.
On January 25, 2001 the University Trust-Income Fund balance was -$32 thousand. This shortfall decreased to -$24 thousand on January 26, 2001 and continued until January 29, 2001 when the balance reached $1.95 million. This shortfall was due to the timing of revenues.
The Wisconsin Health Education Loan Repayment Fund, Utility Public Benefits Fund, and University Trust-Income Fund shortfalls were not in excess of the statutory interfund borrowing limitation and did not exceed the balances of the Funds available for interfund borrowing.
The distribution of interest earnings to investment pool participants is based on the average daily balance in the pool and each fund's share. Therefore, the monthly calculation by the State Controller's Office will automatically reflect the use of these temporary reallocations of balance authority.
Sincerely,
George Lightbourn
Secretary
Referred to the joint committee on Finance.
State of Wisconsin
Department of Administration
February 14, 2001
The Honorable, The Legislature:
In the Division of Gaming Quarterly Report sent to you on February 5, 2001, the fiscal year report on the Bingo program was omitted. Somehow in the assembly phase two copies of the Charitable Gaming (Raffle and Crane Games) got attached.
Please remove the last page of the report and include the attached report on the Bingo program.
If you have any additional questions please contact me at 27--2546. I apologize for this error.
Sincerely,
Richard B. Pedersen
Division of Gaming
Department of Transportation
February 8, 2001
The Honorable, The Senate:
With great pleasure I present to you this report on the Pretrial Intoxicated Driver Intervention Grant Program. The program, created by section 85.53 Wis. Stats., was established by the legislature in 1997 with the requirement that the Department study its impact and report on its findings every even numbered year. This report covers the period from 1995, two years prior to the enactment of the program, through the year 1999.
The Pretrial Intoxicated Driver Intervention Program is designed for drivers who are arrested for their second or subsequent offense. It is an intervention program designed to get the offender into counseling, treatment and monitoring as soon as possible after the arrest in the belief that intervention is most effective if it happens very soon after the incident. Previously, intervention waited until the completion of court action, typically 90 to 120 days. This program brings offenders to intervention almost immediately, usually as part of the bail release process. It was hoped this early intervention would help reduce recidivism rates.
As you will see in the full report, early indications are good. It appears that offenders who successfully completed the program were less likely than non participants to be rearrested for subsequent operating while intoxicated violations and that those who were rearrested went significantly longer between arrests than non participants.
This report describes the program in each of the ten participating counties and provides a detailed explanation of its results. I commend those people who have dedicated themselves to making this innovative program a success.
Sincerely,
Terrence D. Mulcahy, P. E.
Secretary of Transportation
State of Wisconsin
Ethics Board
February 20, 2001
The Honorable, The Senate:
The following lobbyists have been authorized to act on behalf of the organizations set opposite their names.
For more detailed information about these lobbyists and organizations and a complete list of organizations and people authorized to lobby the 2001 session of the legislature, visit the Ethics Board's web site at
http://ethics.state.wi.us/
Boyce, Catherine Smokefree Wisconsin
Broydrick, William Smokefree Wisconsin
Ciaravino, Anthony S Wine Institute
Elverman, Timothy J Smokefree Wisconsin
Gundermann, Robert Wisconsin Alzheimers Association Chapter Network
Handzel, Jr., Henry Printing Industries of Wisconsin
Handzel, Jr., Henry Wisconsin Paper Council
