__________________
State of Wisconsin
Department of Administration
Madison
March 30, 2007
To the Honorable, the Legislature:
A116
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 February 2007.
On February 16, 2007, the Conservation Fund cash balance closed at a negative $873.0 thousand. This negative balance continued through February 28, 2007, when the fund's cash balance closed at a negative $4.2 million. The Conservation Fund cash balance reached its intra‐month low of a negative $5.1 million on February 22, 2007. The negative balance was due to the difference in the timing of revenues and expenditures.
On February 1, 2007, the Wisconsin Health Education Loan Repayment Fund cash balance closed at a negative $1.0 thousand. This negative balance continued through February 28, 2007, when the fund's cash balance closed at a negative $2.0 thousand. The Wisconsin Health Education Loan Repayment Fund cash balance reached its intra‐month low of a negative $2.0 thousand on February 6, 2007. The negative balance was due to the difference in the timing of revenues and expenditures.
The Conservation Fund and Wisconsin Health Education Loan Repayment Fund shortfalls were 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 funds 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,
Michael L. Morgan
Secretary
Referred to committee on Ways and Means.
__________________
Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
March 30, 2007
To the Honorable, the Assembly:
We have completed our annual financial and compliance audit of the State of Wisconsin. This audit satisfies state agencies' audit requirements under the federal Single Audit Act of 1984, as amended, and the federal Office of Management and Budget Circular A‐133. It also assists us in meeting audit requirements under s.
13.94, Wis. Stats.
This audit covers $9.4 billion in federal financial assistance that state agencies administered in fiscal year (FY) 2005‐06. We assessed the propriety of revenues and expenditures and tested internal controls and compliance with laws and regulations for 16 federal programs that were selected for review using risk‐based assessment criteria established by the federal government.
Our report contains the auditor's reports on internal control over financial reporting and on compliance with program requirements and our unqualified audit opinion on the State of Wisconsin Schedule of Expenditures of Federal Awards. We also discuss the results of our follow‐up to prior audit findings. Overall, state agencies have complied with federal grant requirements and have taken steps to address findings included in last year's single audit report. However, we report internal control deficiencies and several areas of federal noncompliance, and we question $14,697 in costs charged to the federal programs, in addition to $4.4 million already returned. The federal government will contact state agencies to resolve the findings and questioned costs included in our report.
We appreciate the courtesy and cooperation extended to us by state agency staff during our audit. Agencies' comments on individual findings, along with their corrective action plans to address our concerns, are included within the agency narratives.
Respectfully submitted,
Janice Mueller
State Auditor
__________________
State of Wisconsin
Investment Board
Madison
March 30, 2007
To the Honorable, the Legislature:
As provided in section 25.17(14m), Wis. Stats., attached is the annual Goals, Strategies and Performance Report for the State of Wisconsin Investment Board (SWIB). This report provides you with information about how we invested the Core and Variable Retirement Trust funds during 2006 and how well our investments performed. The report also discusses our costs of management in 2006 compared to 2005.
Please let me know if you have any questions or comments about the report.
Sincerely,
David C. Mills
Executive Director