Respectfully submitted,
janice mueller
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
December 16, 2005
To the Honorable, the Assembly:
We have completed a financial audit of the State of Wisconsin Educational Communications Board (ECB) Radio Network to meet our audit requirements under s.
13.94, Wis. Stats., and as requested by ECB to fulfill the audit requirements of the Corporation for Public Broadcasting. The Corporation requires audited financial statements of public broadcasting entities to determine future funding levels.
ECB, which is an agency of the State of Wisconsin, operates a radio network of 12 FM stations and 1 AM station, as well as a television network of 5 digital stations and 5 analog stations. The Radio Network received $8.6 million in support and revenue during fiscal year 2004-05, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Our audit report contains the ECB Radio Network's financial statements and related notes for the period July 1, 2004, through June 30, 2005. We were able to issue an unqualified independent auditor's report on these statements.
We appreciate the courtesy and cooperation extended to us by ECB staff during the audit.
Respectfully submitted,
janice mueller
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
December 16, 2005
To the Honorable, the Assembly:
We have completed a financial audit of the State of Wisconsin Educational Communications Board (ECB) Television Network to meet our audit requirements under s.
13.94, Wis. Stats., and as requested by ECB to fulfill the audit requirements of the Corporation for Public Broadcasting. The Corporation requires audited financial statements of public broadcasting entities to determine future funding levels.
ECB, which is an agency of the State of Wisconsin, operates a television network of 5 digital stations and 5 analog stations, as well as a radio network of 12 FM stations and 1 AM station. The Television Network received $11.6 million in support and revenue during fiscal year 2004-05, including state support, member contributions, funding from the Corporation for Public Broadcasting, and various other grants.
Our audit report contains ECB Television Network's financial statements and related notes for the period July 1, 2004, through June 30, 2005. We were able to issue an unqualified independent auditor's report on these statements.
We appreciate the courtesy and cooperation extended to us by ECB staff during the audit.
Respectfully submitted,
janice mueller
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
December 20, 2005
To the Honorable, the Assembly:
A707
We have completed an evaluation of the Volunteer Fire Fighter and Emergency Medical Technician Service Award Program, a retirement benefit program for local emergency services departments that rely on volunteer staff. The program, which is commonly known as the length-of-service award program, is funded by local governments and general purpose revenue. On September 1, 2005, when 5,388 eligible volunteers were enrolled by 182 participating emergency services departments, the program had assets of $10.3 million, including $6.3 million in contributions by municipalities and $4.0 million in state matching funds. Through December 2004, 68 participating volunteers or their beneficiaries had received a total of $255,200 in program benefits.
An eight-member board appointed by the Governor and attached to the Department of Administration (DOA) is responsible for general program oversight, including selecting vendors and reviewing the investment options available to local emergency services departments. It contracts with private vendors for account administration. When vendors were selected in 2001, neither the appropriateness of various investment options nor their costs appear to have been fully understood, and the importance of investment portability was not sufficiently recognized. As a result, three participating departments forfeited a total of $119,000 in premiums paid for nontransferable life insurance policies when the board did not extend one vendor's contract in 2004. Another vendor charges considerable transfer fees for certain investments, which could be costly for some participating departments and may limit the board's contracting alternatives in the future.
The board is preparing to begin a new vendor-selection process because current contracts expire in 2006. Given the range and complexity of improvements needed, our report includes recommendations for the board to obtain independent financial expertise before it begins its new request-for-proposals process. In addition, we recommend more detailed reporting on the program's status to the Legislature.
We appreciate the courtesy and cooperation extended to us by the board, DOA staff, program administrators, interest groups, and local officials and volunteers with whom we spoke. DOA's response follows the appendix.
Respectfully submitted,
janice mueller
State Auditor
__________________
State of Wisconsin
Legislative Audit Bureau
Madison
December 22, 2005
To the Honorable, the Assembly:
As requested, we have performed a preliminary review of the Department of Revenue's (DOR's) administration of the sales and use taxes levied by 58 counties and 2 professional sports districts on the same goods and services that are subject to the State's 5.0 percent sales and use tax. In 2005, DOR expects to distribute more than $306 million to the local units of government that levy these taxes.
The Integrated Tax System (ITS) DOR implemented in December 2002 is used to process sales and use taxes and to calculate the counties' and districts' shares of reported sales and use taxes. DOR has faced many challenges in implementing ITS, including an initial processing backlog, various programming errors, and incorrect calculations. In 2003 and 2005, two major adjustments were made to recoup funds from counties that had been overpaid and to distribute additional funds to those that had been underpaid. In this review, we identified a new concern related to processing certain audit adjustments and other transactions that resulted in additional overpayments.
DOR has negotiated with the vendor that developed ITS for a limited amount of service to be provided at no additional cost to the State, including further system testing that is expected to be completed by March 31, 2006. Later in 2006, after completion of a review of various system assurances that should have been, but were not, included in the original system design, the vendor is also expected to provide additional computer programming services.
To correct for the new error we identified and for other errors that have not yet been corrected, DOR calculates that 33 counties are owed a total of $1.8 million, which it plans to pay along with sales and use tax distributions for December 2005. DOR also calculates that 25 counties and the two professional sports districts were overpaid a total of $2.8 million. We believe it would be prudent to proceed cautiously on any overpayment collections until ITS testing is completed and confidence in the system can be assured. We recommend the Joint Legislative Audit Committee monitor efforts in this area and direct DOR to provide monthly status reports.
We appreciate the courtesy and cooperation extended to us by DOR staff during our review.
Respectfully submitted,
Janice mueller
State Auditor
