Dear Representative Ott,
This is to inform you, effective immediately, Representative John Steinbrink will be replacing Representative Christine Sinicki on the Assembly Committee on Agriculture. As you know, Representative Steinbrink has a broad range of knowledge on agricultural matters, and I am confident that he will be an excellent addition to the committee.
If you have any questions, or would like to discuss this matter with me personally, please feel free to contact my office. Thank you in advance for your immediate attention.
Sincerely,
Jim Kreuser
Assembly Democratic Leader
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Referral of Agency Reports
State of Wisconsin
Department of Natural Resources
Madison
November 1, 2005
To the Honorable, the Legislature:
Attached to this letter is the Environmental Improvement Fund Biennial Report for the 2003-2005 biennium. The report provides information on the activities and operations of the program during the previous biennium. This report is submitted in accordance with s.
281.59(3)(j), Wis. Stats.
If you have any questions regarding the Biennial Report, please contact Bob Ramharter at 266-3916 or Frank Hoadley at 266-2305.
Sincerely,
Michele Young
Director
Bureau of Community Financial Assistance
Department of Natural Resources
Frank Hoadley
Capital Finance Director
Department of Administration
Referred to committee on Natural Resources.
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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
October 27, 2005
To the Honorable, the Assembly:
A578
As required by s.
13.94(1)(de), Wis. Stats., we have completed a financial audit of the Local Government Property Insurance Fund, which provides property insurance to counties, towns, villages, school districts, and other local units of government. The Property Fund is administered by the Office of the Commissioner of Insurance (OCI). As of June 30, 2004, it insured $35.9 billion in property owned by 1,203 local units of government. We have provided an unqualified auditor's report on the Property Fund's financial statements for the fiscal years (FYs) ending June 30, 2004, 2003, 2002, and 2001.
Because of changes in reinsurance coverage and increases in claims, the Property Fund experienced net losses of $8.1 million for the three-year period ending June 30, 2003. In response, OCI increased policyholder premiums. Following this increase, the Property Fund ended FY 2003-04 with net income of $9.2 million and a surplus of $24.5 million. OCI monitors the surplus level and believes it is currently appropriate in light of recent loss experience and recent changes in reinsurance.
In completing our audit, we encountered a serious documentation problem: a subcontractor for the previous fund administrator destroyed nearly all claim files for FYs 2000-01 and 2001-02. In order to provide the necessary documentation and assurances that claim payments were properly made, OCI had the destroyed claim files re-created with the assistance of the current fund administrator and local governments. OCI was able to provide an adequate level of documentation to allow us to provide an unqualified opinion on the financial statements.
We appreciate the courtesy and cooperation extended to us by OCI staff and the private firms responsible for administration of the Property Fund. OCI's response follows our report.
Respectfully submitted,
janice mueller
State Auditor
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State of Wisconsin
Department of Administration
Madison
October 31, 2005
To the Honorable, the Assembly:
This report is transmitted as required by s.
20.002(11)(f), WIsconsin Statutes, (for distribution to the appropriate standing committees under s.
13.172(3), Wisconsin Statutes) 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 cash balances during the month of September 2005.
On September 6, 2005, the General Fund cash balance closed at a negative $12.1 million. The fund's negative cash balance continued intermittently until September 22, 2005, when the fund's cash balance closed at a positive $3.8 million. The General Fund cash balance reached its intramonth low of a negative $264.9 million on September 19, 2005. The negative balance was due to the difference in the timing of revenues and expenditures.
The General Fund shortfall was not in excess of the statutory interfund borrowing limitations 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, and as a result, the funds requiring the use of the authority will effectively bear the interest cost.
Sincerely,
Stephen E. Bablitch
Secretary
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Representative Wieckert moved that the Assembly stand adjourned until 11:00 A.M. on Tuesday, November 8.
The question was: Shall the Assembly stand adjourned?
Motion carried.
The Assembly stood adjourned.
11:06 A.M.
