To the Honorable Members of the Assembly:
The following bills, originating in the Assembly, have been approved, signed and deposited in the office of the Secretary of State:
Bill Number Act Number Date Approved
Assembly Bill 14179November 20, 2003
Assembly Bill 23280November 20, 2003
Assembly Bill 25281November 20, 2003
Assembly Bill 6282November 20, 2003
Respectfully submitted,
James Doyle
Governor
__________________
Communications
November 20, 2003
Patrick Fuller
Assembly Chief Clerk
Risser Justice Center, Room 208
Madison, WI 53708
Dear Chief Clerk Fuller:
I respectfully request that my name be removed as a cosponsor of Assembly Bill 510. In addition, please add my name as a cosponsor to Assembly Bill 635.
Thank you very much. If you have any questions or need further clarification, please do not hesitate to contact my office.
Sincerely,
Glenn Grothman
State Representative
58th Assembly District
__________________
Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
November 19, 2003
To the Honorable, the Legislature:
A554
At the request of the Department of Health and Family Services (DHFS), we have completed a financial audit of the Health Insurance Risk-Sharing Plan (HIRSP) for fiscal year (FY) 2001-02. HIRSP provides medical and prescription drug insurance for approximately 17,000 policyholders who are unable to obtain coverage in the private market. We have provided an unqualified opinion on HIRSP's financial statements and have followed up on issues raised in prior audits.
One of these issues relates to HIRSP's financial stability. Actions taken to implement an accrual-based funding approach in response to prior audit recommendations have helped to reduce the accounting deficit from $8.2 million as of June 30, 2001, to $5.5 million as of June 30, 2002. Further, based on preliminary unaudited financial statements, the deficit was less than $1.0 million as of June 30, 2003. However, the elimination of general-purpose revenue (GPR) support beginning in FY 2003-04, together with increasing enrollment and claims costs, presents continuing challenges to the management and funding of HIRSP. Enrollment increased 16.9 percent, and claims costs increased 27.8 percent, during FY 2002-03. The loss of GPR, which totaled $10.2 million in FY 2002-03, is now covered by policyholders, insurers, and health care providers.
DHFS has taken steps to address prior concerns with its loss estimates and administrative billings. Current procedures call for increased review of actuarial loss estimates. DHFS also has streamlined its fee structure for the services of the HIRSP administrator, which has simplified billing and monitoring of administrative invoices.
Finally, DHFS has improved the system for pharmacy claims by using a pharmacy benefit management company beginning in FY 2001-02. However, oversight of pharmacy claims, which totaled $23.1 million in FY 2001-02 and $32.4 million in FY 2002-03, could be further improved through independent reviews of the company's controls.
We appreciate the courtesy and cooperation extended to us by DHFS and the plan administrator for HIRSP. A response from DHFS follows the appendix.
Respectfully submitted,
Janice Mueller
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
November 20, 2003
To the Honorable, the Legislature:
On September 24, 2003, you requested that we conduct an audit of the Legislative Technology Services Bureau (LTSB). As requested, we have completed our review of LTSB, which manages information systems for the Legislature and its service agencies. In fiscal year (FY) 2002-03, LTSB spent $4.8 million from two appropriations and had an authorized staffing level of 25.0 full-time equivalent positions. Currently, it also employs 19.0 non-state workers through an arrangement with a private vendor.
We found significant deficiencies in LTSB's financial management, procurement, time management, network security, and strategic planning. For example, we found numerous inaccuracies in the financial information recorded on the State's accounting system, inadequate documentation for major maintenance agreements, and inadequate security controls. We also found significant problems in a staffing arrangement LTSB made with a private vendor, which was initiated without a request for proposals or a written contract. Since FY 1998-99, this vendor has been paid $5.9 million.
We have made 17 specific recommendations to improve financial and program management, including a recommendation that LTSB's new director assess whether administrative efficiencies can be achieved or staffing levels reduced. We are available to assist LTSB's new director in developing improved policies, procedures, and management reports, if requested.
We appreciate the courtesy and cooperation extended to us by Interim Director Terry Anderson and LTSB staff during the course of this review.
Sincerely,
Janice Mueller
State Auditor
