Legislative Audit Bureau
February 16, 2007
The Honorable, The Legislature:
We have completed a financial audit of the State of Wisconsin Unemployment Reserve Fund for the years ended June 30, 2006 and 2005. We performed the audit at the request of the Department of Workforce Development (DWD) and to meet our audit responsibilities under s.
13.94, Wis. Stats.
Our audit report contains our unqualified opinion on the financial statements and related notes. It does not discuss DWD's ongoing development of computer software to support the Unemployment Insurance program, which we will address in a future evaluation.
During the period of this audit, the seasonally adjusted unemployment rate was lower than in prior years and ranged between 4.5 percent and 5.0 percent. However, unemployment benefit payments and other expenses exceeded employer contributions and other revenues. Consequently, the Unemployment Reserve Fund's balance continued to decline from its high of $1.9 billion as of June 30, 2000. The Fund's balance was $971.0 million at the start of our audit period and $895.0 million as of June 30, 2006.
2005 Wisconsin Act 86 directed DWD to study the long-term financial stability of the Fund and report to the Unemployment Insurance Advisory Council by July 1, 2007, on any measures required to maintain the Fund's stability.
As part of our audit, we matched data on unemployment benefit payments and individuals in the custody of the Department of Corrections. From this work, it was determined that two prisoners had inappropriately received $2,697 in unemployment benefits. We have therefore recommended in a separate audit communication that DWD work with the Department of Corrections to periodically identify any similar instances of inappropriate benefit payments.
We appreciate the courtesy and cooperation extended to us by DWD staff during the audit.
Respectfully submitted,
Janice Mueller
State Auditor
State of Wisconsin
Claims Board
February 15, 2007
The Honorable, The Senate:
Enclosed is the report of the State Claims Board covering the claims heard on December 13, 2006 and February 2, 2007.
S100
The amounts recommended for payment under $5,000 on claims included in this report have, under the provisions of s.
16.007, Stats., been paid directly by the Board.
The Board is preparing the bill(s) on the recommended award(s) over $5,000, if any, and will submit such to the Joint Finance Committee for legislative introduction.
This report is for the information of the Legislature. The Board would appreciate your acceptance and spreading of it upon the Journal to inform the members of the Legislature.
Sincerely,
John E. Rothschild
Secretary
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The committee on Commerce, Utilities and Rail reports and recommends:
Relating to cigarette and tobacco products tax bad debt deductions.
No action taken.
Jeffrey Plale
Chairperson
