The fiscal year 2004 report was generated using WiSMART, the state's accounting system. WiSMART was not designed to track detailed procurement information, but can provide a general view of expenditures for contractual services. DOA believes that a detailed, enterprise-wide view of state purchases of goods and services is essential to sound management of State operations. We are currently reviewing options that will enable the State to capture again more definitive procurement data for the entire enterprise. This will allow the State of Wisconsin to have the tools needed to purchase goods and services in a cost-effective manner, thereby realizing potential savings to the State consistent with business needs.
If you have questions about this report, please direct them to Patrick Farley in the Department of Administration, Division of State Agency Services at 266-0779.
Sincerely,
Marc J. Marotta
Secretary
Referred to committee on Government Operations and Spending Limitations.
__________________
State of Wisconsin
Medical College of Wisconsin
Milwaukee
October 15, 2004
To the Honorable, the Legislature:
Enclosed is the biennial report of the Medical College of Wisconsin, prepared according to the statutory requirement under section 13.106. This report covers the period ending June 30, 2004, for the Department of Family Medicine and contains information in the following areas:
* Financial status of a family practice residency sites
* Number of family practice residents choosing to practice in medically underserved areas of the state upon graduation.
* Number of graduates entering family practice as a career.
Please feel free to contact me at 414-456-8217 if you have any questions or would like additional information.
Sincerely,
Kathryn A. Kuhn
Director of Government Affairs
Referred to committee on Colleges and Universities.
__________________
State of Wisconsin
Department of Administration
Madison
October 19, 2004
To the Honorable, the Legislature:
Chapter
34, Laws of 1979, requires that when the Department of Administration maintains an office in Washington, D.C., for the purpose of promoting federal/state cooperation, it should submit a report detailing the activities of the office and reporting the status of federal legislation of concern to the Legislature and other state agencies (Wis. Stats. 16.548 (2)).
The report for the period July-October 2004 is attached.
Sincerely,
Marc J. Marotta
Secretary
Referred to committee on State Affairs.
Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
October 12, 2004
To 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 (formerly the Patients Compensation Fund), which insures health care providers in Wisconsin against medical malpractice claims that exceed the primary malpractice insurance thresholds established in statute. We have provided an unqualified auditor's report on the Fund's financial statements for fiscal years ending June 30, 2003, 2002, and 2001. However, we highlight the uncertainty involved in estimating and reporting future loss liabilities.
As noted in our 2001 audit, interest groups continue to raise concerns about the conservative nature of the actuarial estimates of the Fund's loss liabilities, as evidenced by the actuary's annual reductions in past estimates and an accumulation of cash and investments totaling $658.9 million as of June 30, 2003. However, more than three years after we recommended that the Office of the Commissioner of Insurance contract for an audit of the actuarial methods and assumptions used in estimating the Fund's loss liabilities, an actuarial audit has not been completed. The Office concluded that a draft report prepared by the contractor in 2002 was not acceptable, and it is in the process of contracting with another vendor. We include a recommendation that the Office report to the Joint Legislative Audit Committee on the status and results of the actuarial audit by November 30, 2004.
The Fund's computerized provider system, which tracks and accounts for its operations, is aging and experiencing errors that require daily manual reviews and adjustments to correct. The condition of the system is likely to worsen, resulting in increased risk to the Fund's financial operations and additional efforts to keep the system operational. The Office is pursuing incremental enhancements to keep the system operational.
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's Assistant Deputy Commissioner follows the appendix.
Respectfully submitted,
Janice Mueller
State Auditor
__________________
State of Wisconsin
Department of Administration
Madison
October 15, 2004
To the Honorable, the Legislature:
This report presents statements of fund condition and operations (budgetary basis) of the State of Wisconsin for the fiscal year ended June 30, 2004. This satisfies the requirements of sec. 16.40 (3), Wisconsin Statutes. Displayed are major sources of revenues and major categories of expenditures for the General Fund and other funds compared to the prior year.
The General Fund has an undesignated balance of $105.2 million as of the end of the fiscal year. This is $28.2 million lower than the balance of 133.4 million projected in the final Chapter
20 appropriation schedule, and a $387.4 million improvement in the $282.2 million deficit at the start of the fiscal year. The slightly lower ending balance was due to higher tax collections and higher payments for income tax credits combined with shifts in expenditures within the biennium.
General-purpose revenue taxes were $10.7 billion compared to $10.2 billion in the prior year, an increase of $539.6 million or 5.3 percent. This increase was $69.3 million above the Legislative Fiscal Bureau February 2004 estimate of $10.670 billion. General-purpose revenue expenditures, excluding fund transfers, were $10.661 billion compared to $11.033 billion in the prior year, a decrease of $372 million or 3.4 percent.
In fiscal year 2004, the State of Wisconsin continued to devote the major share of state tax collections to assistance to local school districts, municipalities and counties. Local assistance accounted for 61.0 percent of total general purpose revenue spending. Aid payments to individuals and organizations represented 15.1 percent of total general purpose revenue expenditures. The University of Wisconsin accounted for 8.8 percent of total general purpose revenue spending and state operations spending for all other state agencies accounted for 15.1 percent of the total. Wisconsin, along with many other states, continues to struggle with Medicaid costs and insufficient federal revenues. Indicative of that problem it should be noted that the Medical Assistance Trust Fund had a $195.6 million deficit that may eventually need to be financed by the General Fund.
The State of Wisconsin expects to publish its comprehensive annual financial report in December of 2004. The report will be prepared under generally accepted accounting principles.
Respectfully submitted,
Marc J. Marotta
Secretary
William J. Raftery, CPA
State Controller
