* A summary of how HIRSP is funded, who is eligible, what services are covered and policyholder premium, deductible and coinsurance obligations.
* A historical overview and summary of HIRSP-related legislative changes since 1997.
* Demographic information about HIRSP policyholders.
* An explanation of HIRSP's funding and financial information.
* Utilization and cost data, including summaries of HIRSP payments by diagnosis category and by therapeutic classes of prescription drugs.
The Department of Health and Family Services and the HIRSP Board appreciate the continuing support of the Legislature. Please contact me if I may provide additional information.
Sincerely,
Mark B. Moody
Administrator
Referred to committee on Health.
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Agency Reports
State of Wisconsin
Housing and Economic Development Authority
Madison
October 31, 2004
To the Honorable, the Legislature:
Pursuant to Wisconsin Statute 234.931 (5), enclosed please find the following reports relating to the Wisconsin Development Reserve Fund:
Annual Report of Guarantee Funds as of June 30, 2004.
Should you have any question or comments on the reports, please feel free to call me at 266-1640.
Sincerely,
Laura B. Morris
Chief Financial Officer
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State of Wisconsin
Legislative Audit Bureau
Madison
November 9, 2004
To the Honorable, the Legislature:
We have completed a review of the administration of the Wisconsin Works (W-2) program by Opportunities Industrialization Center of Greater Milwaukee, Inc. (OIC-GM), Wisconsin's largest provider of W-2 services, which has been awarded state contracts totaling $231.5 million since 1997. This review was undertaken as part of our ongoing, comprehensive audit of the W-2 program, as requested by the Joint Legislative Audit Committee.
We found that OIC-GM's relationships with other companies are complex and include a subsidiary, affiliates, and ownership interests in other organizations. There is also substantial overlap in the leadership of OIC-GM and these organizations. During the 2002-2003 W-2 contract period, OIC-GM paid these companies at least $2.1 million. Although we found no evidence these payments were inappropriate, there is, at a minimum, the potential for OIC-GM and its associated organizations to financially benefit through noncompetitive subcontracts involving state and federal funds.
We reviewed the level and appropriateness of expenditures made by OIC-GM under W-2 and other programs and with other state and federal funds, including payments made to an attorney recently convicted of misappropriating state and federal funds. We question $421,200 in state and federal funds OIC-GM paid for legal services, including $308,000 for questionable work that was inadequately supported and $113,200 paid to an officer of OIC-GM, which is not allowed under federal regulations. We also found that OIC-GM had large expenditures for telecommunications, which totaled at least $330,700 for the 2002-2003 contract period.
Among $1.2 million in other transactions made by OIC-GM, we identified $6,900 in expenditures charged to the W-2 program that are unallowable, and we questioned another $86,400 primarily because they were excessive, extraordinary, or unnecessary to agency operations.
Sincerely,
Janice Mueller
State Auditor
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A999
State of Wisconsin
Legislative Audit Bureau
Madison
November 22, 2004
To the Honorable, the Legislature:
We have completed an evaluation of the State of Wisconsin Investment Board, as directed by s.
25.17(51m), Wis. Stats. As of December 31, 2003, the Investment Board managed a total of $69.1 billion in investments that included assets of the Wisconsin Retirement System, the State Investment Fund, and five smaller insurance and trust funds.
Despite negative returns from 2000 through 2002, the Investment Board continues to exceed its long-term actuarial investment expectations for the Fixed Retirement Trust Fund. In 2003, both retirement funds - the Fixed Retirement Trust and the Variable Retirement Trust - outperformed their benchmarks, and the Fixed Retirement Trust Fund's 2003 performance ranked highly among ten pension funds surveyed for one- and five-year periods.
The Investment Board's costs to manage investments have increased from $87.4 million in 1999 to $156.7 million in 2003, or by 79.3 percent. Most of the increase is related to increased costs paid to external investment managers and advisors. In addition, a new compensation plan has increased salaries and bonuses for the Board's 100.5 unclassified staff. We include a recommendation for the Investment Board to regularly evaluate the added value provided by external investment managers relative to their costs and in comparison to other investment options.
Currently, the Investment Board's budget for internal operating costs and the percentage of investments that may be externally managed are limited by statute. Under these limits, investment management decisions are not necessarily driven by the most cost-effective options available. In light of increasing costs and increasing use of external managers and advisors, changes to these limits may be warranted to further promote the most effective use of resources and to increase accountability over the Investment Board's costs.
We appreciate the courtesy and cooperation extended to us by the Investment Board. A response from the Board's Executive Director follows the appendices.
Respectfully submitted,
Janice Mueller
State Auditor
