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By Mary Lazich
Saturday, Apr 18 2009, 08:30 PM
Twenty-five employees of state agencies in Wisconsin, including 15 Department of Corrections (DOC) correctional officers and correctional sergeants and 10 Department of Health Services staff each earned more than $50,000 in premium overtime in addition to their regular wages during 2008. That information is contained in an audit of overtime in state agencies prepared by the Legislative Audit Bureau (LAB).
The review concentrated on premium overtime that is paid at 1.5 times an employee’s regular hourly rate. The LAB found that the most premium overtime during 2008 was $97,800, paid to a nurse clinician at Mendota Mental Health Institute. The employee averaged about 80 hours of overtime for each two-week pay period.
A chart provided by the LAB shows another nurse clinician at the Central Wisconsin Center received $103,062 in premium overtime during 2007 and $85,818 in premium overtime during 2008.
The audit also discovered that the same 10 positions were paid the highest premium overtime payments during the last four years. About 4,000 DOC employees comprised almost half, 48.1 percent of all 2008 premium overtime payments.
Four state agencies account for the most premium overtime primarily because they operate 24-hours and respond to emergencies: the Department of Corrections (DOC), the Department of Health Services, the Department of Transportation (DOT), and the Department of Natural Resources (DNR).The LAB found that only the DOC’s premium overtime payments decreased during 2008.
Overall, Wisconsin spent $66.5 million on premium overtime during 2008, 2.2 percent more than 2007.
The LAB had asked DOC and DHS to submit options for reducing overtime to the Legislative Joint Audit Committee by January 5, 2009. Both agencies have requested more time to complete their reports.
As a member of the Joint Legislative Audit Committee, I once again commend the LAB for its consistent, excellent work on behalf of taxpayers. You can see the LAB’s full report here.
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By Mary Lazich
Friday, Apr 10 2009, 09:21 AM
The highly-acclaimed Wisconsin Legislative Audit Bureau (LAB) has completed a review of the state’s administration of billions of dollars in federal financial assistance. The LAB found that, “Overall, state agencies have properly administered federal grant programs and complied with federal requirements.”
Even so, the LAB reports it uncovered, “several new and continuing internal control deficiencies and areas of federal noncompliance.”
During fiscal year 2007-08, state agencies administered $10 billion in federal financial assistance through more than 1,600 federal programs and grants, including 963 research and development grants awarded to the University of Wisconsin (UW) System. The LAB concentrated its review on23 programs, chosen for their size and potential risk of noncompliance. The programs selected made 74.8 percent of the state’s federal financial assistance during 2007-08.
The LAB found that, “Three UW campuses were not timely in requesting federal reimbursement. For example, as a result of our audit work at UW-Madison, we identified $6.7 million in federal funds the State could claim as reimbursement for financial aid disbursed to students. We alsoidentified concerns with timeliness of requests for federal reimbursement at UW-Milwaukee and UW -Oshkosh. We estimate the State lost $183,500 in interest earnings as a result of the untimely requests of the three campuses.”
A reimbursement problem was also discovered at DWD. The LAB writes, “We have renewed concerns with DWD’s process for claiming federal reimbursement for the cost of vocational rehabilitation services provided to individuals who also received federal disability benefits.As a result of our audit, DWD either plans to claim or has already claimed an additional $227,167 from the federal government.”
DWD also had problems with idle facilities. Before the audit, the Division of Unemployment Insurance (UI) was given three additional rooms in a state office building to use two new computer systems for administering the UI program. After one of the computer systems wasdeveloped, two of the three rooms became vacant during November 2005. However, DWD kept charging rental fees for the two idle rooms to the UI grant program from November 2005 through October 2006. During November 2006, DWD started charging rental fees for the two empty rooms to other sources. Then, for reasons unknown, during August 2008, DWD returned to charging the UI grant program for the second room that continues to be idle. A total of $11,612 for space rental costs for the second room was charged to the UI grant program from August 2008 through December 2008.
The LAB does not question any costs for the two rooms because the UI grant program was not charged any unallowable costs. However, The LAB notes the e second room is not currently being used by the UI grant program. So, DWD will need to transfer any unallowable idle space rental costs during fiscal year 2008-09 to cover appropriate funding sources.
The third room became empty during March 2007 after a second computer system project was ended. DWD continued to charge space rental costs to the UI grant program from March 2007 through July 2008. However, only space rental costs from March 2007 through February 2008 are allowable costs of the UI grant program. The LAB questions $26,483, representing idle space rental costs that DWD charged the UI grant program from March 2008 through June 2008. A total of $38,095 will be repaid by DWD.
The LAB had issues with the Foster Care-Title IV-E program. Two of ten licensed foster care providers chosen for scrutiny had not completed criminal background checks. After a review of all providers required to conduct background checks since July 1, 2007, two more providers werefound that had not completed the proper criminal background checks.
UW-Milwaukee uses the Foster Care-Title IV-E program to encourage students to seek child welfare careers. The LAB found that UWM charged the foster care program twice for tuition payments. There was a subsequent overbilling of $112,923. Documentation of the studentsfulfilling the necessary requirements for post-graduate employment was, according to the LAB, “lacking.” UWM intends to return the money.
The LAB also cites continuing problems with the Department of Administration’s (DOA’s) billing rates that have resulted in the state compiling excess cash balances, stating, “During FY 2007-08, $2.2 million was lapsed from an internal fund to the General Fund. We question $449,645, representing the federal government’s share related to this lapse, which will have to be repaid to the federal government, possibly with interest.”
The LAB’s concern is that this has been going on for several years:
“Since FY 2002-03, DOA has returned a total of $39.3 million to the federal government related to excess balances and lapses from the internal service funds. The returned funds could otherwise have been spent for federal program purposes.”
In all, the LAB is making 35 recommendations to help improve the state’s administration of federal assistance.
Here is the breakdown on the federal assistance the state administered during fiscal year 2007-08:
$8.8 billion: cash assistance
$1.2 billion: outstanding federal loan balances
$66.4 million: noncash assistance, including food commodities.
The state has received an increase in federal financial assistance of almost $700 million since fiscal year 2003-04. The increases have been primarily in the areas of Medicaid, food stamps, and unemployment insurance. The bulk of the federal assistance, 95 percent, is expendedby five state agencies:
1) The Department of Health and Family Services (DHFS), now the Department of Health Services (DHS) and the Department of Children and Families (DCF): $4 billion (Medical Assistance, food stamps, health insurance for children).
2) Department of Workforce Development (DWD): $1.6 billion (unemployment insurance, vocational rehabilitation programs)
3) UW System: $1.3 billion (student financial aid, research and development grants)
4) Department of Transportation (DOT): $759.9 million (Highway Planning and Construction program)
5) Department of Public Instruction (DPI): $707.4 million (local schools, nutrition programs for children)
All other state agencies: $449.4 million
The LAB is aware that the state stands to receive a substantial amount of federal stimulus dollars and makes this pledge:
“We will be monitoring the State’s administration of these additional funds. In future audits, we will review compliance with federal requirements for their use.”
Here is the entire LAB audit report.
As a member of the Legislative Joint Audit Committee, I once again commend the LAB for its outstanding work on behalf of Wisconsin taxpayers.
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By Mary Lazich
Monday, Apr 6 2009, 10:46 AM
As of June 2008, 6,957 of Wisconsin’s 22,451 prison inmates were categorized as mentally ill, almost 31 percent. That is according to an audit by the Wisconsin Legislative Audit Bureau (LAB) that was conducted following concerns about the cost and availability of treatment for inmates. The LAB just completed its review of mental health care of inmates by the Wisconsin Department of Corrections (DOC) and the Wisconsin Department of Health Services (DHS). Here is a summary of the audit findings.
During fiscal year 2007-08, expenditures for inmate mental health care totaled approximately $59.8 million. DOC's expenditures included $20.6 million in staff costs and $6.1 million for psychotropic medications. Expenditures by DHS for housing and treating inmates at the Wisconsin Resource Center totaled $32.8 million. DOC used 127.35 full-time equivalent mental health care staff.
The number of mentally ill inmates is on the rise, from 6,084 during June 2006 to 6,957 during June 2008, a 14.3 percent increase. The LAB reports, “Mental illnesses were more than twice as common among female inmates.”
About two-thirds of inmates were screened for mental illness within two days of being taken into DOC custody. DOC staff reviewed files of inmates transferred between facilities in a timely fashion.
Inmates are monitored regularly by psychologists. However the LAB found group therapy was limited. DOC facilities fail to meet national standards for psychology and psychiatry staffing ratios.
Medications are delivered to inmates by correctional officers. The procedure in neighboring states has delivery made by health care staff.
The LAB also found that mentally ill inmates have had a disproportionate effect on safety and discipline, accounting for more than 90 percent of 1,231 special placements made as a result of selfharm from fiscal year 2005-06 to fiscal year 2007-08. These inmates must be monitored by DOC staff at least every 15 minutes. Mentally ill inmates were responsible for almost 80 percent of the 755 inmate assaults on staff during the same time period, costing $874,200 in worker’s compensation awards to DOC and DHS staff. Almost half (46.1 percent) of inmates segregated were mentally ill during January 2008.
The LAB noted the federal Department of Justice discovered during 2006 that inmate mental health care at Taycheedah Correctional Institution did not meet constitutional standards. Last September, DOC agreed to a conditional settlement with the federal Department of Justice that requires specific improvements by September 2012. A 45-bed addition to the Wisconsin Resource Center for female inmates will be completed during February 2011 for $11.1 million. Bonding totaling $7.6 million has been requested by DOC to construct additional treatment space at Taycheedah. Governor Doyle’s proposed state budget asks for 149 full-time positions and $6.6 million to operate the new space and provide services.
The LAB recommends DOC report back to the Joint Legislative Audit Committee that I serve on by January 4, 2010 about the following:
* Options for improving screening for developmental disabilities
* Plans for providing correctional officers with more specific information on inmates’ mental health needs and with enhanced training
* Efforts to improve both release planning for mentally ill inmates and, after release, their supervision in the community
* Progress in implementing its settlement agreement with the federal Department of Justice
The LAB also recommends that DOC ensure all correctional officers have been trained in medication delivery and improve its collection and management of data related to inmate self-harm,assaults on staff, and segregation placements.
Here is the full audit report. I commend the LAB for its consistently excellent work.
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By Mary Lazich
Thursday, Feb 19 2009, 03:18 PM
As a member of the Joint Committee on Audit, I voted in favor of a full audit of the taxpayer-funded Wisconsin Shares child care program. I was the first legislator to call for an audit following an investigative series by the Milwaukee Journal Sentinel. The Joint Committee on Audit approved an audit of Wisconsin Shares, 10-0.
Prior to the vote, State Auditor Janice Mueller informed the committee an audit of Wisconsin Shares would be conducted in two phase. An investigative phase to ascertain the scope of the problems in Wisconsin Shares would be conducted and completed no later than this June. The second phase would evaluate issues of quality and assess the program’s regulatory process.
During the hearing, I mentioned that a past audit that I requested of the Food Stamp program was intended to catch or minimize the problems encountered in Wisconsin Shares because the Food Stamp program is an access point for other programs. I asked Auditor Mueller if there were reasons why this did not occur. Mueller said the answers are hard to come by because of delays and backlogs in food stamp applications.
I also asked Mueller if the Audit Bureau would be sampling the experiences of foster parents. Mueller confirmed that input would be sought from foster parents and that if anyone wanted to provide information anonymously, they could contact the state’s toll-free hotline of waste and fraud.
Prior to the committee vote, I testified, asking for a full audit of the Wisconsin Shares child care program. Here is my testimony:
Testimony of Senator Mary Lazich
On Audit request of Wisconsin Shares
Joint Committee on Audit
February 19, 2009
Good morning, Co-committee chairs Senator Vinehout and Representative Barca and committee members. Thank you for the opportunity to provide testimony to the Joint Committee on Audit on my request about an audit of the Wisconsin Shares program.
Many of us recall the blaring headline on the front page of the Milwaukee Journal Sentinel just a few weeks ago: “Child-care scams rake in thousands.” That was the newspaper’s introduction to a series of investigative reports on Wisconsin Shares, the state taxpayer supported child care system. The $340-million program, when successful, provides assistance to low-income parents to help them get and retain jobs.
However, during the Milwaukee Journal Sentinel’s four-month long investigation, it discovered Wisconsin Shares was not operating effectively or appropriately. The newspaper found what it called, “a trail of phony companies, fake reports and shoddy oversight.”
The Journal Sentinel reported, “The system allows child-care providers and parents to easily con the system, capitalizing on children for public cash.” With limited access to child care cases, the Journal Sentinel still was able to pinpoint $750,000 in suspicious child-care disbursements.
Taxpayers funding this program demand answers and accountability concerning these serious allegations. The current conditions outlined by the Milwaukee Journal Sentinel are unacceptable. The newspaper’s findings include counties accepting almost anything as verification of employment for parents requesting assistance, caseworkers approving child care while children were at school all day, and regulators reluctant to revoke licenses for fraud.
My fear is that the problems associated with Wisconsin Shares are even more serious than the Milwaukee Journal Sentinel uncovered. It appears the state and local governments investigated refused to provide some information to the newspaper. That indicates to me that the true scope of the problem could be even more serious and widespread. That is the reason a full audit of Wisconsin Shares is necessary.
I liken this to the welfare fraud allegations that led to major reform in Wisconsin that served as a model for the rest of the nation. The newspaper articles along with a thorough review could lead to a much-needed overhaul of the program. Like the welfare scandals years ago, the taxpaying public will not tolerate waste and fraud. We have to protect the taxpayers and we must ensure that the truly needy, the truly deserving are receiving program services. Measures to prevent cash-grabbing scams can be put in place only after a full audit.
The Legislative Audit Bureau will have far greater access and cooperation than the newspaper received and I trust will do an excellent job determining the seriousness of the fraud in Wisconsin Shares.
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By Mary Lazich
Friday, Jan 30 2009, 04:30 PM
“Child-care scams rake in thousands”
That was the blaring headline the Milwaukee Journal Sentinel used to begin its series of investigative reports on Wisconsin Shares, a state taxpayer supported child care system. The $340-million program, when successful, provides assistance to low-income parents to help them get and retain jobs.
During a four month period, reporter Raquel Rutledge pored over 2,500 records and documents and uncovered, what it called, ““a trail of phony companies, fake reports and shoddy oversight,” a system that could be scammed without difficulty or accountability by parents and child-care providers, “capitalizing on children for public cash.” With limited access to child care cases, the Journal Sentinel still pinpointed $750,000 in suspicious child-care disbursements.
The current conditions outlined by the Journal Sentinel are unacceptable. I’m appalled that rampant fraud and waste is occurring, especially at a time the state is suffering a huge deficit.
This legislative session, I serve as a member of the Joint Committee on Audit. I formally asked in a letter to the committee co-chairpersons that they request the highly regarded, nonpartisan Legislative Audit Bureau conduct a full review of the Wisconsin Shares child-care program. Three days later, the committee co-chairpersons announced the committee will hold a public hearing to decide if the Legislative Audit Bureau should conduct an audit. The hearing is scheduled for Wednesday, February 18, 2009 at 2:00 p.m. in Room 411 South of the State Capitol in Madison. The public is invited.
The taxpayers funding this program demand answers and accountability concerning the serious allegations made as a result of the Journal Sentinel’s investigation and subsequent reporting. My fear is that the problems associated with Wisconsin Shares are even more serious than the Milwaukee Journal Sentinel discovered. The state and local governments investigated refused to turn a great deal of information to the newspaper indicating the true scope of the problem could be even more serious and widespread.
I liken this to the welfare fraud allegations that led to major reform in Wisconsin that served as a model for the rest of the nation.
The newspaper articles along with a thorough review could lead to a much-needed overhaul of the program. Like the welfare scandals years ago, the taxpaying public will not tolerate waste and fraud. We have to protect the taxpayers and we must also ensure that the truly needy, the truly deserving are receiving program services. Measures to prevent cash-grabbing scams can be put in place only after a full audit.
The Legislative Audit Bureau will have far greater access and cooperation than the newspaper received and I trust will do an excellent job determining just how serious the fraud is in Wisconsin Shares. The last full audit of Wisconsin Shares was during 2001. It is time we have another.
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By Mary Lazich
Friday, Jan 30 2009, 07:31 AM
By Mary Lazich
Monday, Jan 26 2009, 10:49 AM
Here is a news release I issued this morning:
LAZICH WANTS FULL AUDIT OF WISCONSIN SHARES PROGRAM
Request follows MJS series that found rampant fraud in child care program
FOR IMMMEDIATE RELEASE Contact: Sen. Lazich
MONDAY, JANUARY 26, 2009 Phone: (608)266-5400
(MADISON) - State Senator Mary Lazich (R-New Berlin) has formally asked the co-chairpersons of the Joint Committee on Audit to request that the Legislative Audit Bureau conduct a full review of the state taxpayer-funded Wisconsin Shares child care program. Lazich’s request follows a series of reports by the Milwaukee Journal Sentinel after its four month investigation of Wisconsin Shares uncovered what the newspaper called, “a trail of phony companies, fake reports and shoddy oversight.”
The Journal Sentinel also reported, “The system allows child-care providers and parents to easily con the system, capitalizing on children for public cash.” With limited access to child care cases, the Journal Sentinel still pinpointed $750,000 in suspicious child-care disbursements.
“The taxpayers funding this program demand answers and accountability concerning the serious allegations made as a result of the Journal Sentinel’s investigation and subsequent reporting,” said Lazich, a member of the Joint Committee on Audit.
“The current conditions outlined by the Journal Sentinel are unacceptable,” said Lazich who made her request for an audit in a letter to Joint Committee on Audit co-chairpersons, Senator Kathleen Vinehout and Representative Peter Barca.
The Journal Sentinel’s findings include counties accepting almost anything as verification of employment for parents requesting assistance, caseworkers approving child care while children were at school all day, and regulators reluctant to revoke licenses for fraud.
“My fear is that the problems associated with Wisconsin Shares are even more serious than the Milwaukee Journal Sentinel discovered,” said Lazich. “I trust the outstanding Legislative Audit Bureau will do an excellent job determining the extent of fraud in Wisconsin Shares.”
The Milwaukee Journal Sentinel reports the last full audit of Wisconsin Shares was done during 2001.
UPDATE from Milwaukee Journal Sentinel
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By Mary Lazich
Tuesday, Dec 16 2008, 12:41 PM
An audit prepared by the highly-regarded, nonpartisan Wisconsin Legislative Audit Bureau (LAB) found $268,000 in potentially improper payments during fiscal year 2005-06 to Medicaid providers that include nursing homes, pharmacies, chiropractors and dentists. Examples show the state paid a nursing home $1,507 to transport a Medicaid patient one mile and $250 to transport another patient five miles.
Wisconsin’s Medicaid program funds health care services for low-income, elderly, blind, and disabled individuals. Medicaid includes medical and dental services and long-term care. The Department of Health Services (DHS) certifies that providers meet basic standards to participate in Medicaid. DHS also must ensure that service payments meet federal and state rules.
Other potentially unallowable claims pinpointed by the LAB include an estimated $108,700 paid to 65 nursing homes for transportation services. Three nursing homes were paid an approximate $1,500 to reserve beds for longer than allowed under Medicaid rules. Pharmacies were paid an approximate $97,400 for 2,620 claims for controlled substances that didn’t have authorization numbers issued by the Drug Enforcement Administration.
Wisconsin does have a system in place to control Medicaid fraud. As required by federal law, the state has a Medicaid Fraud Control Unit that operates within the Department of Justice (DOJ). It investigates charges of fraud and patient abuse and neglect in health care facilities that receive Medicaid payments and prosecutes providers believed to have committed crimes. Eleven full time positions in DOJ have been assigned to fraud control from fiscal year 2002-03 to fiscal year 2006-07 that include three attorneys, three consumer protection investigators, three auditors, and two support staff. The 2007-09 state budget allowed for the creation of two additional auditor positions that have been filled.
DOJ received 182 referrals of suspected provider fraud from fiscal year 2002-03 through fiscal year 2006-07. During that time, the department filed criminal charges against 36 providers that resulted in 34 providers convicted of fraud and theft-related charges and two acquittals. Courts ordered convicted providers to pay a total of $2.9 million, including $2.0 million in restitution, $898,900 in fines, and $1,200 to cover the cost of investigations by DOJ.
Where do restitution payments go? The state and federal governments are reimbursed for their shares of the unallowable Medicaid payments made to the provider. Fines are deposited into the Common School Fund. Payments received for investigative costs go to help support DOJ’s investigation and prosecution activities.
DOJ may also prosecute alleged violations of Medicaid rules in civil court Such legal action is considered best at times because the evidence standards in civil court are lower than in criminal court, and DOJ may avoid the cost of a trial through a settlement. From fiscal year 2002-03 through fiscal year 2006-07, 16 civil settlements were negotiated between the State and Medical Assistance providers, pharmaceutical manufacturers and companies that deliver medical equipment or services. Courts ordered providers and companies to pay the state a total of $11.7 million.
The LAB identified methods DHS could use to improve the certification and monitoring of Medicaid providers, including conducting criminal background checks and quickly decertifying providers that violate Medicaid rules. The audit found that typically, DHS does not use all of its power to recoup unallowable payments.
The LAB made several recommendations as the result of its review:
* DHS should determine whether any claims the LAB identified were unallowable and recover payments related to those that are.
* DHS should report to the Joint Legislative Committee by April 1, 2009 on its efforts to improve the certification and monitoring of Medicaid providers by conducting criminal background checks as part of the provider certification process and ensuring that providers whose professional licenses are restricted, suspended, or revoked are decertified on a timely basis.
* DHS should also report to the Committee on its efforts to enhance the prevention and recovery of unallowable payments, including how it plans to use its authority to sanction providers that repeatedly commit the same violations, and the date by which it will promulgate rules to charge interest to providers that fail to promptly or entirely reimburse the state for unallowable payments.
Once again, I commend the LAB for their consistently thorough reviews on behalf of Wisconsin taxpayers. Here is the entire audit report.
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By Mary Lazich
Wednesday, Dec 3 2008, 07:52 AM
As required by state statute, the highly acclaimed Wisconsin Legislative Audit Bureau (LAB) has completed a review of the Wisconsin Lottery, based on an examination of trends in lottery sales, operating revenues and operating expenses, the development and management of instant games, and the Lottery’s oversight of its contracts with private firms.
There has been a dramatic decline in the sale of pull-tab tickets. Pull-tab ticket sales totaled about $25.3 million during fiscal year 1988-89. However, by fiscal year 2007-08, sales had dropped to $3.2 million. The Wisconsin Lottery says the decline is due, in part, to private pull-tab vendors operating illegally or under a loophole in state law allowing any business to offer a game of chance with its products as part of a promotion. Pull-tab ticket sales are not expected to increase until or unless private illegal games are stopped or if the exemption for private vendors is modified. Wisconsin Department of revenue Secretary Roger Ervin, in a letter to auditors, says Lottery staff has conducted a market analysis showing the Lottery could generate an additional $23 million per year in revenue if statutes were changed to allow Lottery-only games.
Another noteworthy item in the audit involves the contract for product information services, a term that simply means advertising. Milwaukee public relations firm Hoffman York is contracted by the Wisconsin Lottery to publicize lottery games. Almost all funds appropriated in the state budget for product information go to Hoffman York. The 2007-09 state budget increased the annual product information budget from $4.6 million to $7.5 million. Hoffman York received $7.2 million during fiscal year 2007-08 and used it to buy radio and TV time to publicize games.
The Wisconsin Lottery is required by its contract to formally review and evaluate Hoffman York’s performance each year. The LAB discovered the Lottery “has not done so. Instead, agency officials provide ongoing verbal feedback and conduct quarterly surveys of Wisconsin residents to gauge their awareness and opinions of the Wisconsin Lottery.”
While the audit was being conducted, the Lottery started to make an evaluation form for its product information contractor. The audit reports says:
“To measure the effectiveness of Hoffman York’s product information services, the Wisconsin Lottery compared initial 12-week ticket sales for 16 publicized scratch-off games with average 12-week sales data for comparable unpublicized scratch-off games that were introduced during the same period.”
Following a 2005 LAB recommendation, the Lottery began using an evaluation tool to determine each instant game’s first 12-week ticket sales and overall sales. During fiscal year 2007-08, 113 instant scratch-off games were available for purchase at some time. The LAB audit is recommending the Lottery include product information costs in its evaluation tool for instant games and require Hoffman York to consistently report amounts spent to advertise individual games.
In his response to the audit, Wisconsin Department of Revue Secretary Roger Ervin wrote that despite the challenge of precisely determining the effect of lottery advertising, it works. Ervin says the Lottery stopped advertising during 1993 and it lost about $19.5 million in instant ticket sales, a loss of at least $25 for every $1 of advertising not spent.
Other notes from the audit:
During fiscal year 2007-08, Wisconsin Lottery ticket sales totaled $494.7 million.
The Wisconsin Lottery provided taxpayers with $146.5 million in property tax relief during fiscal year 2007-08.
During fiscal year 2003-04 through fiscal year 2007-08, ticket sales increased 2.4 percent.
Once again, I commend the LAB for their consistently outstanding work. Here’s the audit report.
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By Mary Lazich
Wednesday, Oct 29 2008, 04:49 PM
Wisconsin’s highly-acclaimed Legislative Audit Bureau (LAB) has released two audits about the Wisconsin Health Insurance Risk-Sharing Plan (HIRSP) Authority. The HIRSP Authority offers medical and prescription drug insurance for those unable to obtain coverage in the private market or who have lost employer-sponsored group health insurance.
Financial records of the HIRSP Authority for the final six months of 2006 and all of calendar year 2007 were reviewed. The LAB did not find what it called, “significant concerns,” but it does advise that the HIRSP Authority work with the federal government to settle a federal cash management issue.
Every quarter, the HIRSP Authority should remit to the federal government interest earned on advances of federal funds. The LAB found that a $4,422,935 grant was awarded to Wisconsin for HIRSP during September 2006 by the Centers for Medicare and Medicaid Services (CMS) in the U.S. Department of Health and Human Services under a grant program. The entire amount was drawn by the Wisconsin Department of Administration (DOA) during November 2006 and transferred through the Wisconsin Office of the Commissioner of Insurance (OCI) to the HIRSP Authority during the first week of January 2007.
The LAB reports the HIRSP Authority had spent only $2,333,710 of the federal grant when it received the funds during January 2007. The remaining $2,089,225 was spent from January through June 2007. The HIRSP Authority did not remit to CMS any interest earned on the federal funds it received.
How could that happen? The LAB explains that there was a change in the administration of HIRSP effective July 1, 2006. Control was transferred from the Wisconsin Department of Health and Family Services to the HIRSP Authority effective July 1, 2006. Prior to that time, OCI received federal funds to be paid to the HIRSP Authority. State law was then changed to allow federal grant funds to go directly to the HIRSP Authority. As a result, the LAB reports, “the HIRSP Authority may owe interest to CMS on the advance of $2,089,225 it received in January 2007. Potential interest earnings on those funds are estimated to not exceed $33,000 for the period January through June 2007.”
The LAB writes that when the administration of HIRSP changed, staff members at the HIRSP Authority were unaware of and not informed about the cash management requirements. The audit recommends that the HIRSP Authority work with CMS, DOA, and OCI to resolve this issue and take measures to meet federal cash requirements in the future.
I commend the LAB for their consistently outstanding work. You can read their audits here and here.
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By Mary Lazich
Friday, Oct 3 2008, 03:43 PM
Between December 2006 and January 2008, state government suffered three breaches of privacy when Social Security numbers were exposed to the public.
During January 2008, I blogged, “A third breach of privacy in just over a year also occurred this month with a portion of 5,000 taxpayers in northeastern Wisconsin having their Social Security numbers exposed in a state mailing. A folding error enabled some of the recipients' Social Security numbers to be seen in the windows of envelopes containing federal 1099-G tax forms.”
I remain unable to fathom a situation that it is necessary to publish the Social Security number of any recipient of a state service. The third breach of privacy that occurred earlier this year led to a review prepared by the state’s highly-regarded Legislative Audit Bureau (LAB).
Since April 2008, state law has directed the LAB to establish a toll-free hotline to take reports of fraud, waste, and mismanagement in state government and to investigate reports received through the hotline. The LAB started its investigation of the January 2008 breach of privacy in response to complaints that the state Department of Administration (DOA) had not used proper oversight of contract staff provided by Spherion for print and mail services. Complaints raised questions about workplace safety, a hostile work environment, and false billing hours. DOA reported that Spherion staff failed to notice the folding error that led to up to 5,000 tax forms mailed with Social Security numbers visible through envelope windows.
One of the LAB’s findings is unfortunate. The LAB discovered that the state’s contract with Spherion did not include any provisions to collect damages for instances like the breach of privacy.
The LAB writes, “The contract had no specific liquidated damage provisions, and DOA did not elect to pursue breach of contract damages from Spherion to pay the cost of addressing the security breach, including the cost of credit monitoring for affected taxpayers. DOA noted that it was not appropriate to require Spherion to pay for credit monitoring because it believes Spherion’s overall performance has been satisfactory and the number of documents affected represented a small percentage of the total number processed.”
As for preventing future blunders, the LAB writes, “DOA indicated that it has developed standard contract terms and conditions related to imposing liquidated damages and requiring contractors to pay the costs of security breaches for which they are responsible. It plans to encourage state agencies to incorporate these provisions into future contracts, where appropriate.”
The state’s contract with Spherion expires June 30, 2009, and DOA has begun a process to solicit bids during October or November of this year. The LAB calculates as much as $616,500 could be saved in the five-year period from fiscal year 2009-2010 through fiscal year 2013-2014 if state staff filled all print and mail positions currently filled by contract staff.
The LAB recommends that if DOA continues to contract for some or all print and mail staff in the future, billing procedures should be formalized, contractors should be prohibited from billing for time new staff are trained, and contracts should include standard provisions for damages if private information is disclosed.
The LAB did not substantiate any complaints about workplace safety, a hostile work environment, and fraudulent time recording by contract staff.
Here is the complete LAB report.
I commend the LAB for another outstanding review on behalf of Wisconsin taxpayers.
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By Mary Lazich
Thursday, Sep 11 2008, 04:08 PM
Having served on the Legislative Audit Committee in the past, I have a keen interest in the high caliber work of the Legislative Audit Bureau (LAB) that always impresses. Under a requirement of state law, the highly-regarded LAB conducts studies to determine local government practices that can save costs or deliver services with greater efficiency. These reviews are called Best Practices reports.
The LAB has completed a Best Practices review of efforts by Wisconsin’s public school districts to reduce truancy. Wisconsin statutes define truancy as any absence for all or part of a school day for which a pupil’s parent or guardian has not notified school officials of the reason for the absence. A habitual truant is a pupil who is absent without an acceptable excuse for all or part of five or more days in a semester.
During the 2006-07 school year, the most recent year data was available, the LAB found:
- 9.3 percent of pupils in kindergarten through grade 12 were habitually truant.
- The habitual truancy rate varied among districts in the 2006-07 school year, ranging from 0 in 47 districts to a high of 58.2 percent in the Menomonie Indian district.
- The 20 largest school districts account for nearly three quarters of habitual truants.
- The Milwaukee Public Schools (MPS) district had a habitual truancy rate of 46.3 percent during the 2006-07 school year.
- The older a student gets, the more apt the student is to be truant. Habitual truancy rates ranged from 4.5 percent for fourth graders to 17.2 percent for ninth graders.
This finding by the LAB is quite interesting. The Department of Public Instruction (DPI) is required by law to collect attendance data and report certain data to federal agencies. However, DPI is not required to review or approve school districts’ attendance policies, truancy plans, or truancy reduction efforts.
The LAB reports that during the past four school years, DPI has administered federal funds totaling $1.9 million for districts with high pupil poverty rates, higher habitual truancy rates, and inadequate yearly progress as measured by the federal No Child Left Behind Act. Eight school districts have received federal truancy funds. Here are the districts and their latest habitual truancy rates:
Milwaukee Public Schools (MPS): 46.3%
Menominee Indian School District: 58.2%
Green Bay Area Public School District: 9.2%
The School District of Beloit: 33.6%
The School District of Janesville: 19.8%
Kenosha Unified School District: 19.0%
Madison Metropolitan School District: 8.5%
The Racine Unified School District: 8.5%
Habitual truancy rates at three of the six MPS schools that received federal truancy reduction grants during the 2006-07 school year increased from the previous year.The best analysis that can be offered about the effect between federal funding and truancy rates is that the results are mixed.
The LAB found that school districts have generally complied with state statutes and have drawn up and monitored attendance policies and have contacted families about unexcused absences. Districts have instituted truancy plans and have conducted reviews of their own plans and plans in other districts. The variety of truancy reduction programs includes social workers at elementary schools contacting students and families to discuss ways of reducing tardiness. At the high school level, night schools, schools within schools, and local ordinances to punish truants have been adopted.
The effectiveness of the ordinances has been mixed. The LAB writes, “For example, in Kenosha Unified School District Number 1, 79.0 percent of pupils who received truancy citations did not comply with the order to attend school. In contrast, 55.0 percent of Racine Unified School District pupils who received citations had fewer instances of truancy after being cited.”
The LAB recommends that school districts consistently review compliance with statutory requirements for attendance monitoring and truancy planning, monitor habitual truancy at each grade level and develop strategies to minimize truancy in the early grades, identify alternative programming to help truant high school pupils obtain high schoolDiplomas, involve parents and guardians in truancy-related matters, consider the full range of available sanctions for addressing truancy, and evaluate and modify, asnecessary, their truancy reduction efforts on a regular basis.
DPI should, according to the LAB, promote the sharing of cost-effective information about truancy reduction efforts among school districts.
I commend the LAB for once again conducting an outstanding Best Practices review.
Here is the full LAB report.
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By Mary Lazich
Friday, Jul 18 2008, 10:11 AM
The Legislative Audit Bureau (LAB) has released its annual audit of the financial statements for the Wisconsin State Fair Park for fiscal year 2006-07. Here are the audit’s key findings.
For the first time since fiscal year 1998-99, State Fair Park annual revenue exceeded expenditures, by $1.3 million. Race track related expenditures declined by $3.8 million. As of June 30, 2007, State Fair Park’s accumulated cash deficit was $9.9 million. The deficit is a concern because less funding is available for other state programs and the deficit prohibits State Fair Park income from turning into investments.
State Fair Park made a license agreement in December 2005 with Milwaukee Mile Holdings to manage racing events at the Fair Park. The agreement was for 18 years and included a license fee of $246,000 the first year increasing to $1.8 million annually thereafter. There have been some amendments to the agreement since, the latest coming in a renegotiation in February of this year that reduced the annual license fee to $1 million beginning in 2008.
The original agreement December 2005 agreement was intended to have the license fee be sufficient to cover annual debt service at State Fair Park. Under the new agreement, the LAB estimates that, “State Fair Park’s financial responsibility for the Milwaukee Mile will increase to nearly $1.2 million in 2008,” meaning more revenue sources must be found. Some possibilities that had been considered review are the development of 5.75 acres at State Fair Park adjacent to I-94 and the construction of a billboard on the grounds. Because of I-94 construction, those options have been postponed.
The audit also examined concerns pertaining to livestock contests at the Wisconsin State Fair. The concerns include the role of the Agriculture Director consulting with advisory committees in establishing contest rules for junior division livestock shows, the responsibility of the Agriculture Director in choosing junior division judges, and changes in the payout procedures for the premier livestock competition of the State Fair, the Governor’s Blue Ribbon Livestock Auction.
The LAB also reports, “Several conflict of interest allegations have also been raised related to the Agriculture Director’s responsibilities to State Fair Park and his participation in an outside business that buys and sells show cattle. For example, the Agriculture Director maintained a financial interest in animals that were exhibited and won championships at the 2005 and 2006 state fairs. State Fair Park officials were aware of this potential conflict but did not reassign the Agriculture Director’s responsibilities because he was not a direct participant in the competitions and was not the sole person responsible for selecting judges. The Agriculture Director has indicated he is transitioning away from his outside business, but we found that he continued to participate as recently as March 2008.”
Here is the way the Milwaukee Journal/Sentinel reported the issue.
The LAB recommends the State Fair Park Board consult with the state’s Government Accountability Board to examine if the Agriculture Director’s outside business interests constitute a conflict of interest with his duties at the State Fair Park.
The LAB also recommends the State Fair Park get more financial information from the company managing racing activities, report back to the Joint Legislative Audit Committee by March 31, 2009 on both the revenue shortfall in the new license agreement with Milwaukee Mile Holdings and the cash deficit, reevaluate the selection of judges for junior livestock competitions, and that the State Fair Park Board’s Agriculture Committee approves competition rules for livestock shows annually.
Here is the entire LAB audit report.
I commend the LAB for their consistently excellent reviews.
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By Mary Lazich
Tuesday, Jul 8 2008, 02:21 PM
Every year, the highly regarded Legislative Audit Bureau (LAB) is required by state law to conduct an audit of the Wisconsin Lottery. The financial review is complete and here are the audit’s key findings.
More than 99 percent of the lottery revenue comes from instant and online ticket sales. Total ticket sales increased 13.3 percent during the past five fiscal years, from $435.0 million in 2002-03 to $492.8 million in 2006-07. Sales of scratch-off and pull-tab games increased 13.9 percent during that period, while online game sales increased 12.5 percent. Ticket sales decreased during 2004-05 and 2006-07 due to the timing of large Powerball jackpots that have a sizeable effect on online game ticket sales.
Expenses from game development and production decreased by 14.1 percent over the past five fiscal years. The decreases were the result of the state entering into a seven-year contract with GTECH Corporation in June 2004 to maintain the instant and online gaming system and provide telecommunication services. Other expenses decreased by 16.7 percent over the past five fiscal years. Lottery staff attributes those decreases to strategies implemented to reduce costs.
Under the state Constitution, net proceeds from the Wisconsin Lottery must be used solely for property tax relief to owners of primary residences in Wisconsin and through the farmland tax relief credit to certain farmland owners in Wisconsin. Property tax relief totaled $697.9 million over the past five fiscal years, including $160.0 million in 2006-07.
State laws and legislative action impose limitations on four types of lottery expenses. The LAB reports the Wisconsin Lottery is in compliance with each of the limitations:
1) The LAB reports, “At least 50 percent of Wisconsin Lottery sales be returned to players as prize payments. As a percentage of ticket sales, prize expenses have remained generally consistent, although they increased to 59.3 percent during 2006-07. Wisconsin Lottery officials attribute the 1.3 percentage point increase between 2004-05 and 2006-07 to offering higher-priced instant games that include higher prize payout percentages. They also note that the 2006-07 prize payout percentage may be higher because the Wisconsin Lottery paid the $100,000 prize for Supercash! eight times more in 2006-07 than in 2005-06.”
2) The LAB reports that state law “limits certain administrative expenses to no more than 10.0 percent of gross operating revenues. These administrative expenses include all expenses except prize payments and retailer compensation. The Wisconsin Lottery’s administrative expenses have remained within the statutory limit and were 5.9 percent of gross operating revenues during 2006-07.”
3) The LAB reports, “The Wisconsin Constitution prohibits the expenditure of public funds or of revenues derived from lottery operations for promotional advertising. It directs any advertising to provide information about the chances of winning and prize structures. Through legislative action, the Wisconsin Lottery’s product informational advertising expenses have been limited to $4.6 million annually since 1990-91. This expenditure authority was not exceeded in 2006-07. The Legislature has increased the Wisconsin Lottery’s annual product informational advertising budget to $7.5 million beginning with 2007-08. Wisconsin Lottery staff project that increase will produce an additional $15.0 million in annual lottery ticket sales.”
4) The LAB reports state laws “establish maximum compensation rates for basic commissions and performance program payments to retailers who sell lottery tickets. Basic commission rates are 5.5 percent of the retail price for online tickets and 6.25 percent for instant tickets. Performance program payments to eligible retailers may not exceed 1.0 percent of total ticket sales. The Wisconsin Lottery’s retailer performance program payments have remained within the statutory limit for the past five fiscal years and were 0.9 percent of ticket sales during 2006-07.”
The LAB gave the opinion in their audit that the Lottery’s “financial statements present fairly, in all material respects, the financial position of the Wisconsin Lottery.”
Here is the LAB full report of the Wisconsin Lottery audit.
Once again, I commend the LAB for their outstanding and thorough analysis.
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By Mary Lazich
Saturday, Jun 14 2008, 07:15 AM
Wisconsin’s highly-acclaimed nonpartisan Legislative Audit Bureau (LAB) has released its annual Single Audit report that outlines federal funds awarded to the state. The Single Audit is generally considered critical in ensuring the effective use of taxpayer dollars, and helping maximize the State’s federal funding.
During fiscal year (FY) 2006-07, state agencies administered $9.6 billion in federal funding through more than 1,600 federal programs and grants that included 930 research and development grants awarded to the University of Wisconsin (UW) System.
The amount of federal funding administered by Wisconsin has changed very little since fiscal year 2002-03.
How is the money spent? According to the LAB:
“The Department of Health and Family Services (DHFS), the Department of Workforce Development (DWD), the UW System, the Department of Transportation (DOT), and the Department of Public Instruction (DPI) “administered 95 percent of the federal cash and noncash assistance the State expended in FY 2006-07. DHFS was responsible for the largest share: $3.8 billion, including $2.8 billion in federal funding for the Medicaid Cluster. The Medicaid Cluster includes Medical Assistance, the largest federal program administered by the State of Wisconsin. Additional state funding to support Medical Assistance totaled $1.9 billion in FY 2006-07.
Other federal programs administered by DHFS include the Food Stamp Cluster, the State Children’s Insurance Program, Foster Care—Title IV-E, and Adoption Assistance.
DWD administered $1.5 billion in federal financial assistance in FY 2006-07. DWD administers the Unemployment Insurance program, as well as the Temporary Assistance for Needy Families, Child Care subsidy, and Vocational Rehabilitation programs.
UW System disbursed a total of $1.3 billion in federal funds, including $648.5 million in student financial aid and $512.9 million in research and development grants.
Most of the $729.8 million in federal funding administered by DOT supported the Highway Planning and Construction program, which had FY 2006-07 expenditures of $638.2 million.
DPI provided the majority of its $688.0 million in federal funding to local schools and other entities for education and child nutrition programs. Other state agencies disbursed another $461.2 million in federal funds during FY 2006-07.”
The audit concentrated on 22 programs that accounted for 69.9 percent of Wisconsin’s federal funding during FY 2006-07. Programs were selected for review based on their size and the risk of noncompliance with federal rules. The good news is the LAB determined that state agencies have properly administered federal grant programs and complied with federal requirements.
During FY 2007-08, the state did return $15.5 million to the federal government due to excess balances in an internal service fund administered by the Department of Administration. Excess balances are prohibited under federal grant rules.
Another concern was raised about food stamps issued to prison inmates. The LAB matched data on food stamp benefit recipients with data from the Department of Corrections and reviewed a group of 12 inmates that appeared most likely to have improperly received food stamp benefits. The LAB found that 10 of the 12 inmates did receive food stamps inappropriately received food stamp benefits while in prison. The recommendation from the LAB is that the state recover those benefit payments.
The Single Audit has 27 recommendations to improve the state’s administration of federal funding.
Here is the full audit report.
Once again, I commend the LAB for another outstanding and thorough review.
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By Mary Lazich
Friday, Jun 13 2008, 06:51 AM
Wisconsin’s Legislative Audit Bureau (LAB) has finished a review of dental care services provided under the state’s Medical Assistance program.
During fiscal year 2006-07, approximately $46.0 million was spent on dental services provided to Medical Assistance recipients, but only 1,342 of 3,493 licensed dentists in Wisconsin, or 38.4 percent, were certified as Medical Assistance providers statewide.
The LAB concentrated its review on dental services in southeast Wisconsin that are provided to Medical Assistance recipients through health maintenance organizations (HMOs). The audit discovered lower utilization of dental care services among HMO enrollees, especially for those under the age of 21, and higher costs than in the fee-for-service system used in other counties. The audit also found HMO utilization rates have not improved in the past five years.
The LAB is recommending the Department of Health and Family Services (DHFS) that administers the Medical Assistance program establish alternative dental service delivery models for southeast Wisconsin before current contracts expire in December 2009.
Here are more details from the LAB’s review.
Dentists in the four counties in southeastern Wisconsin are concerned about the amount they are reimbursed for services to Medical Assistance recipients, believing the HMOs and dental administrator are keeping an unfair, larger share of the State’s total capitation payments. The dentists feel the results are reimbursement levels below fee-for-service rates that are used in the other 68 counties in Wisconsin. They submit that many of their colleagues do not participate in the Medical Assistance program, resulting in limited access to dental services for low-income persons.
Attempting to find a reasonable percentage of capitation payments, the LAB concedes it found no standard to judge the appropriateness of the amounts retained. The HMOs state that the amounts retained were necessary to pay for their administrative and other expenses, including language translation services. The dental administrator, and not the HMOs however, is responsible for a number of other services, including paying for dental care, assessing enrollees’ emergency dental needs, managing billing, and monitoring providers’ professional qualifications.
Regarding access to care, the contracts between DHFS and the HMOs, as well as those between the HMOs and the dental administrator, have several provisions designed to provide timely access to care. The contracts require a dental care provider to be located within 35 miles of each HMO enrollee who is a Medical Assistance recipient, HMOs’ contractors must keep an “adequate” number of dental providers, and HMO enrollees who are Medical Assistance recipients must have access to routine dental care within 90 days of requesting an appointment, and within 24 hours in emergencies.
The LAB found the 35-mile requirement was automatically met because the greatest distance between any two points in any of the four counties is less than 35 miles. But the HMO’s have been unable to provide an adequate number of providers and timely access to care on a consistent basis.
The HMOs must report to DHFS the number of dentists providing services to their enrollees. Every year, the HMO’s have a December 31 deadline to list the names of all dental providers serving HMO enrollees. Dental administrators reported contracting with significantly more dentists in 2006 than in 2005. During 2007, however, the overall number of dental providers declined.
In fact, the LAB notes that both DHFS’s review of the HMOs’ reports in 2007 and an earlier survey it conducted show that the number of dentists actually serving Medical Assistance recipients is likely overstated in the reports submitted by HMOs. Even so, DHFS concluded that the number of dentists was still adequate to meet the needs of Medical Assistance recipients in three of the four southeastern Wisconsin counties.
The LAB also found that the required timeliness standards have not been met consistently. One of the dental administrators, Doral reported that based on its own calls to dentists, 83.9 percent of its dentists met a 24-hour emergency standard and 79.0 percent met a 90-day routine appointment standard from 2002 through 2004.
One HMO reported that during 2004, only 40.0 percent of SEDA’s (another dental administrator) dental providers met the 24-hour standard and 60.0 percent met the 90-day standard.
As part of its 2007 reviews of dental providers, DHFS found that 32 of the 45 providers Doral listed as accepting new patients were not able to schedule non-emergency appointments within 90 days, but that SEDA’s performance had improved and only “a few” SEDA providers were unable to meet the 90-day standard.
Despite these inconsistencies, as of April 2008, DHFS has not established standardized procedures for the HMOs to use in measuring compliance with the timeliness standards spelled out in contracts.
The contracts between DHFS and the HMOs contain broad language requiring HMOs to provide enrollees with needed care. The LAB found that based on data provided by the HMOs to DHFS, a higher percentage of Medical Assistance recipients served by fee-for-service providers in the other 68 counties received dental services than those served by the HMOs in the four southeastern Wisconsin counties. During fiscal year 2006-07, 33.8 percent of children under the fee-for-service system received services, compared to less than 30.0 percent of children enrolled in managed care plans. The LAB says it seems that HMOs have not been more successful than fee-for-service providers in ensuring that Medical Assistance recipients under the age of 21 receive dental care.
Questions about the cost-effectiveness of HMO’s in southeastern Wisconsin have been raised for many years. DHFS estimated in a June 2005 report that costs were $2.7 million higher under managed care than they would have been under a fee-for-service system. The LSAB tried to confirm the DHFS finding but had trouble doing so for the following reasons:
1) HMOs and the dental services administrators have argued that the systems are inherently different and cannot be directly compared, in part because the concept of managed care is designed to provide advantages to enrollees by facilitating access to services.
2) The population density and demographic characteristics of Medical Assistance recipients differ significantly between the four-county area and the rest of the state.
3) Certain administrative costs are expressly reflected in the managed care capitation payments received by HMOs but less expressly reflected in fee-for-service reimbursements received by dentists, and therefore cannot be readily compared.
But when the LAB compared average costs for all Medical Assistance recipients receiving dental services, including the elderly, blind, and disabled, as well as participants in Family Medical Assistance and BadgerCare, the LAB found significant differences. During fiscal year 2006-07, the average fee-for-service cost per Medical Assistance recipient receiving services was $211. Under HMO’s, it was $270.
The LAB concludes:
The number of participating dentists is declining.
HMO’s have neither documented that they are providing services more cost-effectively than the fee-for-service system nor have they improved their rate of service delivery to Medical Assistance recipients in the four counties audited.
As a result, The LAB believes alternative models to improve access to care and utilization of dental services by Medical Assistance recipients in southeast Wisconsin should be considered.
Here is the entire LAB report.
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By Mary Lazich
Wednesday, Jun 11 2008, 09:27 AM
Under a requirement of state law, the highly-regarded Wisconsin Legislative Audit Bureau (LAB) conducts studies to determine local government practices that can save costs or deliver services with greater efficiency. These reviews are called Best Practices reports.
The LAB has completed a Best Practices review of public library services in Wisconsin. According to the audit, “Wisconsin has 388 public libraries, which are funded primarily with municipal and county taxes, as well as 17 regional library systems supported by state aid. These libraries and systems employed more than 3,200 full-time equivalent staff in 2006, when their operating expenditures totaled $210.4 million.”
As part of the audit, the LAB sent online surveys to all 388 library and 17 regional library system directors in Wisconsin. All 17 regional library system directors and 180 of the 388 member library directors responded to the surveys.
Here are some of the key findings of the audit.
Funding for library services increased 14.0 percent during the five-year period from 2002 through 2006, going from $201.7 million in 2002 to $230.0 million in 2006. During 2006, municipalities provided 59.4 percent of total funding, or $136.7 million. Expenditures for library services totaled $210.4 million; 70.6 percent was for employee salaries and benefits.cipal Funding$136.7
Wisconsin has 17 regional library systems, created to provide greater access to library materials and services, and to foster the sharing of resources among public libraries. The goal has proven to be significant, since the ability for library patrons to access resources from various member libraries within regional public library systems is very popular.
Most member libraries allow access to online catalogs that enable patrons to see and request materials from other member libraries within their system. Over half of libraries responding to the LAB survey reported that the online catalogs are the most valuable service provided by library systems.
Computers continue to be a big drawing card for libraries, getting more and more patrons in the door. Computers with Internet access is one of the most popular services offered by libraries.
The number of computers in libraries for public use increased 20.3 percent, from 4,477 in 2002 to 5,386 in 2006. Over half, 53.9 percent of the libraries that responded to the LAB survey noted a need for additional computer terminals. More than half of the survey respondents provide wireless Internet service to patrons with their own computers or set time limits for using the library computers because of the demand.
Judging from the number of library materials circulated statewide, the role and popularity of libraries is growing.
The number of materials circulated statewide increased 11.8 percent in five years, from 53.3 million in 2002 to 59.6 million in 2006. Libraries have stepped up and have managed to handle the heavier demand for materials by installing self- checkout machines, cross-training staff, and using more volunteers.
The expanded services have become more specialized. Examples include large-print and audio books, providing materials to senior centers and nursing homes, and maintaining special collections in Spanish or Hmong.
The LAB recommends specific best practices for regional library systems and individual libraries.
Among the recommendations, the LAB says it is a best practice for regional library systems to encourage all member libraries to participate in systemwide online catalogs of library materials, assist their member libraries in maintaining current information technology, and explore additional opportunities for collaboration with other systems that can lead to more efficient and lower-cost delivery of services.
It is a best practice for libraries to support their services with an array of funding sources and consider the formation of friends and foundation groups to assist with fund-raising and provide volunteer support, periodically evaluate cross-training and centralizing responsibilities as means for staff to serve patrons more effectively, assess the extent to which volunteers can be effectively used to assist in providing library services, periodically review their collections to identify and remove materials that are not being circulated, and use rotating collections or other means to provide access to more extensive or specialized materials from other libraries, and inform local officials and the general public, through local media outlets and the Internet, about the programs and services they provide.
This spring, I conducted a series of town meetings throughout Senate District 28. I am very pleased that five of my town hall meetings were held in libraries in my district.
Here is the full report of the LAB.
I commend Wisconsin libraries and their dedicated employees for the tremendous public service they perform, and the LAB for once again conducting an outstanding review that contributes to the quality of life in our state.
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By Mary Lazich
Sunday, May 25 2008, 06:44 AM
Governor Doyle signed into a law a bill I co-sponsored that creates a toll−free telephone number to receive reports from Wisconsin citizens about fraud, waste, and mismanagement of tax funds.
The toll-free hotline is operated by the Wisconsin Legislative Audit Bureau and is now up and running.
Here is a Milwaukee Journal/Sentinel article, details from the Legislative Audit Bureau on how the fraud hotline works, and the history of Senate Bill 86 that contains links to Legislative Council memos and the enacted law.
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By Mary Lazich
Thursday, May 1 2008, 08:00 PM
Over two weeks ago, I blogged that Governor Doyle had quietly dropped a state program designed to save $200 million over four years because it wasn’t working.
An audit of the failed program is now planned.
The Associated Press has more details, including the Doyle administration’s claim that the program was only intended to save $35 million over two years.
By the way, here is the governor’s press release on the program called the ACE Initiative when it was announced. Read the promise in the very first sentence of the release
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By Mary Lazich
Saturday, Apr 12 2008, 07:03 AM
The Wisconsin State Journal is reporting that last year, Governor Doyle’s administration “quietly dropped” the Accountability, Consolidation and Efficiency, or ACE initiative. The administration promoted ACE, promising a savings to the state of $200 million over four years by determining more effective ways to make state purchases.
My colleague, state Senator Rob Cowles of Green Bay has asked for an audit of ACE. Cowles is correct that during a time of a $650 million dollar revenue shortfall, the state must take every step it can to ensure funding is being spent appropriately and effectively.
Read the Wisconsin State Journal article.
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