State of Wisconsin
Legislative Audit Bureau
May 12, 2010
The Honorable, The Legislature:
We have completed an evaluation of public health programs and medical education and research initiatives established by the Medical College of Wisconsin and the University of Wisconsin (UW) School of Medicine and Public Health. The schools established these programs and initiatives with funding they received in trust when Blue Cross Blue Shield United of Wisconsin became a for-profit, publicly held stock insurance corporation. They requested our evaluation to fulfill requirements in a March 2000 order by the Commissioner of Insurance.
The Commissioner's order divided the funds equally and restricted their use to medical education and research and public health initiatives. From December 2003 through December 2007, a total of $630.4 million was transferred to permanent endowments managed separately by each school. Through December 31, 2008, the Medical College expended $32.1 million and the UW School of Medicine and Public Health expended $44.1 million on grants and administration.
Both schools have generally complied with the requirements they established for awarding and monitoring their funding, and we found that most grantees met the objectives described in their proposals. However, there were some exceptions, and we include recommendations for the schools to improve grant management and oversight. We also identified policy issues for their consideration, including possible changes to the conflict-of-interest policies for the committees that award some funds at each school and the need to continue careful monitoring of endowment balances. We also suggest the Commissioner of Insurance consider clarifying the definition of supplanting, the degree to which medical education and research funds may be allocated by the schools' Deans on a noncompetitive basis, and the extent to which the schools should directly expend public health funding rather than award it to community-based programs administered by other entities.
We appreciate the courtesy and cooperation extended to us by the schools and grantees as we conducted this evaluation. Results of our in-depth review of 40 individual projects funded by each school are summarized in a separate document (report 10-7). The schools' responses to our evaluation follow the appendices.
Respectfully Submitted,
janice mueller
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
May 12, 2010
The Honorable, The Legislature:
We have completed an evaluation of public health programs and medical education and research initiatives established by the Medical College of Wisconsin and the University of Wisconsin School of Medicine and Public Health. The schools established these programs and initiatives with funding they received in trust when Blue Cross Blue Shield United of Wisconsin became a for-profit, publicly held stock insurance corporation. They requested our evaluation to fulfill requirements in a March 2000 order by the Commissioner of Insurance.
This report includes profiles of the 80 grant projects we reviewed in detail, including 20 public health projects and 20 medical education and research projects at each school. For each project, we interviewed the grantees and reviewed project proposals, budgets, expenditures, and progress reports. Our complete evaluation of each schools' program is report 10-6, which includes an assessment of expenditures and operations, as well as policy issues for consideration by the Commissioner of Insurance, the Wisconsin United for Health Foundation, and the schools.
We appreciate the courtesy and cooperation extended to us by the schools and grantees as we conducted this evaluation. The schools' responses to our evaluation follow the appendices of report 10-6.
Respectfully Submitted,
janice mueller
State Auditor
__________________
The committee on Children and Families and Workforce Development reports and recommends:
Relating to emergency assistance for needy families.
No action taken.
Robert Jauch
Chairperson
