Sincerely,
Judy Ziewacz
Director
Referred to committee on Biofuels and Sustainable Energy.
__________________
State of Wisconsin
Department of Administration
Madison
April 30, 2007
To the Honorable, the Legislature:
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 March 2007.
On March 30, 2007, the General Fund cash balance closed at a negative $37.3 million. The negative balance was due to the difference in the timing of revenues and expenditures.
On March 1, 2007, the Conservation Fund cash balance closed at a negative $4.3 million. This negative balance continued through March 15, 2007, when the fund's cash balance closed at a positive $19.2 million. The Conservation Fund cash balance reached its intra‐month low of a negative $5.9 million on March 7, 2007. The negative balance was due to the difference in the timing of revenues and expenditures.
On March 1, 2007, the Wisconsin Health Education Loan Repayment Fund cash balance closed at a negative $2.0 thousand. This negative balance continued through March 30, 2007, when the fund's cash balance closed at a negative $2.0 thousand. The negative balance was due to the difference in the timing of revenues and expenditures.
The General Fund, 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.
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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,
Michael L. Morgan
Secretary
Referred to committee on Ways and Means.
__________________
Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
April 27, 2007
To the Honorable, the Assembly:
At your request, we have completed a limited‐scope review of how the Department of Commerce and the Wisconsin Technical College System (WTCS) have spent funds from the Fire Department Dues Program in recent years.
Commerce is appropriated funds to administer a statewide fire inspection and prevention program. In fiscal year (FY) 2005‐06, its expenditures totaled $641,900, 65.6 percent of which supported the salaries and fringe benefits of 6.6 full‐time equivalent (FTE) positions that are responsible for distributing program funds to municipalities and training fire department staff in inspection duties. In FY 2005‐06, Commerce charged $92,700 in overhead costs to the program, representing 14.4 percent of its expenditures for administering the program.
WTCS is appropriated program funds for two purposes: to administer fire prevention and protection training programs and to offer training courses to local firefighters in technical college districts. In FY 2005‐06, its expenditures for administration of the program totaled $435,000, 41.2 percent of which supported salary and fringe benefit costs for 3.0 FTE positions in the central office. In FY 2005‐06, WTCS spent $117,500 for supplies, primarily to purchase office furniture and supplies for the program as part of WTCS's move to new offices, and charged $15,800 in overhead costs to the program, representing 3.6 percent of its expenditures for administering the program.
In recent years, WTCS has spent almost all of the $600,000 it has been appropriated annually for conducting training courses in technical college districts. However, until recently it has not spent all of the funds appropriated to it for administration of the program. Funds for administration of the program that are not spent or encumbered do not lapse but instead remain in the appropriation. At the end of FY 2005‐06, unspent funds, which are available for reallocation by the Legislature, totaled $308,000.
We appreciate the courtesy and cooperation extended to us by Commerce and WTCS.
Sincerely,
Janice Mueller
State Auditor