Patrick Fuller
Assembly Chief Clerk
17 West Main Street, Suite 401
Madison, WI 53703
Dear Chief Clerk Fuller:
Please add my name as a co-author to the following bill:
Assembly Bill 731
Sincerely,
Scott Suder
State Representative
69th Assembly District
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Referral of Agency Reports
State of Wisconsin
WHA Information Center
Madison
March 29, 2010
To the Honorable, the Legislature:
Enclosed is a hard copy of the Fiscal Year 2008 Guide to Wisconsin Hospitals produced by WHA Information Center pursuant to s.
153.22, Wis. Stats. The report was posted on our web site in October 2009. Please feel free to download and print additional copies.
If you have any questions regarding the report you may contact me at 608-274-1820, 800-231-8340 or
jkachelski@wha.org.
Sincerely,
Joseph Kachelski
Vice President
WHA Information Center
Referred to committee on Health and Healthcare Reform.
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State of Wisconsin
Department of Administration
Madison
March 31, 2010
To the Honorable, the Legislature:
This report is transmitted as required by s.
20.002 (11)(f), Wisconsin Statutes, (for distribution to the appropriate standing committees under s.
13.172 (3), Wisconsin Statutes) and confirms that the Department of Administration has found it necessary to exercise the "temporary reallocation of balances" authority provided by this section in order to meet payment responsibilities and cover resulting negative cash balances during the month of February 2010.
On February 1, 2010, the Injured Patients and Families Compensation Fund cash balance closed at a negative $8.9 million. This negative balance continued through February 16, 2010, when the fund's cash balance closed at a positive $3.7 million. The Injured Patients and Families Compensation Fund cash balance reached its intra-month low of a negative $9.0 million on February 8, 2010. The negative balance was due to the transfer of $200 million to the Medical Assistance Trust Fund per
2007 Wisconsin Act 20, and the pending liquidation of fund securities necessary to offset this shortfall.
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On February 1, 2010, the Utility Public Benefits Fund cash balance closed at a negative $12.5 million. This negative balance continued through February 28, 2010, when the fund's cash balance closed at a negative $14.8 million. The Utility Public Benefits Fund cash balance reached its intra-month low of a negative $15.2 million on February 24, 2010. The negative balance was due to the difference in the timing of revenues and expenditures.
On February 1, 2010, the Permanent Endowment Fund cash balance closed at a negative $2.0 million. This negative balance continued through February 28, 2010, when the fund's cash balance closed at a negative $2.0 million. The negative balance was due to the difference in the timing of revenues and expenditures.
On February 1, 2010, the Medical Assistance Trust Fund cash balance closed at a negative $52.7 million. This negative balance continued through February 28, 2010, when the fund's cash balance closed at a negative $232.1 million. The Medical Assistance Trust Fund cash balance reached its intra-month low of a negative $232.3 million on February 25, 2010. The negative balance was due to the difference in the timing of revenues and expenditures.
On February 1, 2010, the Police and Fire Protection Fund cash balance closed at a negative $27.8 million (its intra-month low). This negative balance continued through February 28, 2010, when the fund's cash balance closed at a negative $25.6 million. The negative balance was due to the difference in the timing of revenues and expenditures.
On February 1, 2010, the Conservation Fund cash balance closed at a negative $13.9 million. This negative balance continued through February 28, 2010, when the fund's cash balance closed at a negative $28.5 million (its intra-month low). The negative balance was due to the difference in the timing of revenues and expenditures.
The Injured Patients and Families Compensation Fund, Utility Public Benefits Fund, Permanent Endowment Fund, Medical Assistance Trust Fund, Police and Fire Protection Fund, and Conservation Fund shortfalls were not in excess of the statutory interfund borrowing limitations and did not exceed the balances of the funds available for interfund borrowing.
The distribution of interest earnings to investment pool participants is based on the average daily balance in the pool and each fund's share. Therefore, the monthly calculation by the State Controller's Office will automatically reflect the use of these temporary reallocations of balance authority, and as a result, the funds requiring the use of the authority will effectively bear the interest cost.
Sincerely,
Michael L. Morgan
Secretary
Referred to committee on Ways and Means and joint committee on Finance.
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Agency Reports
State of Wisconsin
Legislative Audit Bureau
Madison
March 30, 2010
To the Honorable, the Assembly:
As required by s.
13.94 (1)(de), Wis. Stats., we have completed a financial audit of the Injured Patients and Families Compensation Fund, which insures health care providers in Wisconsin against medical malpractice claims that exceed the primary malpractice insurance thresholds established in statutes. The Fund is managed by the Office of the Commissioner of Insurance (OCI). We have provided an unqualified auditor's report on the Fund's financial statements for the fiscal years ending June 30, 2009, 2008, and 2007.
The Fund's financial position has declined significantly over the last two years. Its audited financial statements show negative net assets in the amount of -$109.0 million as of June 30, 2009. In
2007 Wisconsin Act 20, the Legislature directed that $200.0 million be transferred from the Fund to the Medical Assistance Trust Fund. The Injured Patients and Families Compensation Fund's financial position also has been affected by the recent downturn and instability in the economy and the investment markets. Further, the FY 2008-09 total of $65.7 million in annual claim payments was the largest since the Fund's inception.
As recommended in past audits, actuarial audits are being completed every three years. However, OCI failed to request an evaluation of the appropriateness of the explicit loss liability risk margin and the investment return assumption as part of its 2008 actuarial audit, as had been recommended in our 2007 financial audit. We again recommend that OCI address these two areas in the next actuarial audit.
The Fund's computerized provider system had required correction by regular manual reviews and adjustments. However, the Fund recently implemented a new system, at a total cost of $1.4 million. We will evaluate the adequacy of the new system as part of our next audit of the Fund.
We appreciate the courtesy and cooperation extended to us by the staff of OCI and the Fund's contractors. A response from OCI follows the appendices.
Respectfully submitted,
Janice Mueller
State Auditor
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State of Wisconsin
Legislative Audit Bureau
Madison
March 31, 2010
To the Honorable, the Assembly:
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We have completed our annual financial and compliance audit of the State of Wisconsin. This audit satisfies state agencies' audit requirements under the federal Single Audit Act of 1984, as amended, and federal Office of Management and Budget Circular A-133. It also assists us in meeting audit requirements under s.
13.94, Wis. Stats.
This audit covers $13.6 billion in federal financial assistance that state agencies administered in fiscal year 2008-09, including approximately $1.5 billion in assistance received under the American Recovery and Reinvestment Act of 2009. We assessed the propriety of revenues and expenditures and tested internal controls and compliance with laws and regulations for 20 federal programs that were selected for review using risk-based assessment criteria established by the federal government.
Our report contains the auditor's reports on internal control over financial reporting and on compliance with program requirements, and our unqualified audit opinion on the State of Wisconsin Schedule of Expenditures of Federal Awards. We also discuss the results of our follow-up to prior audit findings. Overall, state agencies have complied with federal grant requirements and have taken steps to address findings included in last year's single audit report. However, we report several new and continuing internal control deficiencies and areas of federal noncompliance. The federal government will contact state agencies to resolve the findings and questioned costs included in our report.
We appreciate the courtesy and cooperation extended to us by state agency staff during our audit. Agencies' comments on individual findings, along with their corrective action plans to address our concerns, are included within the agency narratives.
Respectfully submitted,
Janice Mueller
State Auditor
