__________________
State of Wisconsin
Office of the Senate President
March 22, 2007
The Honorable, The Senate:
I have made the following appointment:
Midwestern Higher Education Commission: Pursuant to Wisconsin Statute 14.90(1)(c), I am appointing Senator Jim Sullivan.
Most Sincerely,
Fred A. Risser
President
State of Wisconsin
Public Service Commission
March 16, 2007
The Honorable, The Legislature:
The enclosed audit report on Piepgras Holding Company and its impact on the operations of St. Croix Valley Natural Gas Company, Inc., was prepared as required by Wis. Stat. s.
196.795(7)(ar) for distribution to the Wisconsin Legislature under Wis. Stat. s.
13.172(2). This report covers financial operations for calendar years 2005 and 2006.
Sincerely,
Sandra J. Paske
Secretary to the Commission
State of Wisconsin
Legislative Audit Bureau
March 22, 2007
The Honorable, The Legislature:
As required by s.
13.94(1)(de), Wis. Stats., we have completed a financial audit of the Injured Patients and Families Compensation Fund, which insures health care providers in Wisconsin against medical malpractice claims that exceed the primary malpractice insurance thresholds established in statutes. We have provided an unqualified auditor's report on the Fund's financial statements for the fiscal years ending June 30, 2006, 2005, and 2004.
The Fund continues to maintain a sound financial position. Its audited financial statements show net assets of $59.8 million as of June 30, 2006, the highest year-end balance reported since the Fund's inception. The Governor's 2007-09 Biennial Budget Proposal would transfer $175.0 million from the Fund to a newly created heath care quality fund. Although the Injured Patients and Families Compensation Fund has accumulated cash and investments of $737.4 million to pay estimated loss liabilities of $685.0 million as of June 30, 2006, a transfer of $175.0 million would place it in a deficit accounting position. In addition,
2003 Wisconsin Act 111 established the Fund as an irrevocable trust for the sole benefit of participating health care providers and proper claimants.
The Fund's computerized provider system, which tracks and accounts for its operations, is aging and experiencing errors that require regular manual reviews and adjustments to correct. The condition of the system presents increased risks to the Fund's financial operations. The Governor's 2007-09 Biennial Budget Proposal recommends additional funding of $600,000 for the development and implementation of a new system.
We appreciate the courtesy and cooperation extended to us by the staff of the Office of the Commissioner of Insurance and the contractors who assist in administering the Injured Patients and Families Compensation Fund program. A response from the Office of the Commissioner of Insurance follows the appendices.
Respectfully submitted,
Janice Mueller
State Auditor
