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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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By Mary Lazich
Saturday, Jan 12 2008, 05:07 PM
After the Legislative Audit Bureau released an audit last November that recommended, “the Elections Board and, after it is replaced, the Government Accountability Board request that municipal clerks obtain birth dates from voters during future elections and consider ways to more easily facilitate the collection of this information,” I said the following in a press release:
“What better way to obtain the birth dates of all voters than a driver’s license or state-issued photo ID?”
This week, the U.S. Supreme Court heard oral arguments in a case involving Indiana’s strict photo ID law.
The court's swing vote, Justice Anthony Kennedy, in questioning the lawyer for the state Democratic Party and ACLU asked, "You want us to invalidate a statute on the ground that it's a minor inconvenience to a small percentage of voters?"
Now the Wall Street Journal in an opinion piece asks the following:
“How can anyone object to asking for ID?”
The U.S. Supreme Court is reviewing the photo Id law in Indiana, the strictest photo ID requirement in the nation.
John Fund writes in the Wall Street Journal that without photo ID, voter fraud is easy.
“Indiana officials make the obvious point that, without a photo ID requirement, in-person fraud is "nearly impossible to detect or investigate." A grand jury report prepared by then-Brooklyn District Attorney Elizabeth Holtzman in the 1980s revealed how difficult it is to catch perpetrators. It detailed a massive, 14-year conspiracy in which crews of individuals were recruited to go to polling places and vote in the names of fraudulently registered voters, dead voters, and voters who had moved. "The ease and boldness with which these fraudulent schemes were carried out shows the vulnerability of our entire electoral process to unscrupulous and fraudulent misrepresentation," the report concluded. No indictments were issued thanks to the statute of limitations, and because of grants of immunity in return for testimony.
Even modest in-person voter fraud creates trouble in close races. In Washington state's disputed 2004 governor's race, which was won by 129 votes, the election superintendent in Seattle testified in state court that ineligible felons had voted and votes had been cast in the name of the dead. In Milwaukee, Wis., investigators found that, in the state's close 2004 presidential election, more than 200 felons voted illegally and more than 100 people voted twice. In Florida, where the entire 2000 presidential election was decided by 547 votes, almost 65,000 dead people are still listed on the voter rolls--an engraved invitation to fraud. A New York Daily News investigation in 2006 found that between 400 and 1,000 voters registered in Florida and New York City had voted twice in at least one recent election.”
Here is John Fund’s entire opinion piece.
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By Mary Lazich
Thursday, Jan 3 2008, 11:30 AM
Last November, I blogged about the findings by the Legislative Audit Bureau that sent a clear message that Wisconsin needs to enact a photo ID requirement to vote.
The audit I blogged about is mentioned in a USA TODAY article about problems with voting systems around the country. USA TODAY reports that under the 2002 Help America Vote Act (HAVA), states are required to have statewide voter databases completed by January 1, 2006. Nine states missed the deadline, including Wisconsin. The recent audit in Wisconsin, as USA TODAY points out, has numerous flaws.
To say the least, it is very disheartening that five years after passage of HAVA and with the Iowa caucuses unfolding, and Wisconsin’s Presidential primary right around the corner, our nation’s voting system is in disarray.
Here’s the USA TODAY article.
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By Mary Lazich
Saturday, Dec 15 2007, 11:00 AM
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One of the bills approved by the state Senate this week would require the Legislative Audit Bureau to maintain a toll-free number with voice mail at the bureau’s office to receive reports of fraud, waste, and mismanagement in state government. The bureau must send these reports to the appropriate bureau employee for investigation.
An amendment to Senate Bill 86 provides that if an Audit Bureau employee investigates a report, the employee may consult with a state agency. The amendment also provides that instead of requiring a bureau employee to investigate a report, the bureau may refer a report to a state agency for investigation. In the case of the Audit Bureau referring a report to a state agency for investigation, the agency must conduct the investigation and deliver the results of the process to the Audit Bureau in a timely manner.
I am a co-sponsor of Senate Bill 86 that would allow citizens to alert the state to improprieties in state government and help the state operate more efficiently.
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By Mary Lazich
Friday, Nov 30 2007, 01:23 PM
Wisconsin can and must enact a photo ID requirement for voting.
The wake-up call comes in an audit prepared by the Legislative Audit Bureau (LAB) that provides a clear message: approve photo ID now.
Several recommendations were made by the LAB in their audit on compliance with election laws. The very first recommendation is the most significant:
“The Elections Board and, after it is replaced, the Government Accountability Board request that municipal clerks obtain birth dates from voters during future elections and consider ways to more easily facilitate the collection of this information.”
What better way to obtain the birth dates of all voters than from a driver’s license or state-issued photo ID?
The Legislature approved photo ID legislation on three occasions, only to see Governor Doyle veto it all three times. If Governor Doyle had not vetoed photo ID, Wisconsin would be able to avoid many voter irregularities.
The audit found that the statewide voter registration system implemented at a cost of over $22 million failed to properly verify voting eligibility, thus opening the door to fraud. The state Elections Board attempted to match data in the system with data compiled by the departments of Corrections, Health and Family Services, and Transportation in order to pinpoint individuals ineligible to vote.
But as the LAB pointed out, “Electronic matching failed for the November 2006 general election and the spring 2007 election. Elections Board officials now believe that the data matching will not work during Wisconsin’s presidential primary in February 2008.”
This finding by the Audit Bureau places the entire credibility of Wisconsin’s critically important February 2008 Presidential primary in doubt. Our faith in our election system could be restored with a photo ID requirement.
An investigation of the November, 2004 election in the city of Milwaukee by U.S. Attorney Steve Biskupic and then-Milwaukee County District Attorney E. Michael McCann found the following:
- In more than 100 cases, people voted twice, used phony names or addresses, or used the names of dead people.
- More than 200 felons voted illegally.
- The number of votes counted exceeds the number of votes recorded by more than 4,600.
We have clear, hard evidence that illegal votes are being cast, and are canceling the ballots of honest voters. A photo ID tells the poll worker you are the person you say you are. A photo ID will prevent people from giving phony names and addresses to voter registration drives, and then showing up on Election Day to vote illegally.
Once again, I commend the LAB for another outstanding, thorough review of an issue that deserves greater scrutiny and attention.
Now it’s time for the Legislature to move quickly to adopt photo ID before the important February 2008 Wisconsin Presidential primary. Republicans who’ve supported photo ID in the past are ready to work to get this critical measure approved. The question is, what about Governor Doyle and legislative Democrats? If they want to restore Wisconsin’s reputation of clean, honest elections, they’ll work with Republicans to get the job done.
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By Mary Lazich
Wednesday, Nov 28 2007, 01:00 PM
After the Legislative Audit Bureau released its audit today on compliance with election laws, I issued the following press release, renewing the call for photo ID in Wisconsin
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By Mary Lazich
Saturday, Sep 22 2007, 07:49 AM
An evaluation of the Division of Gaming in the Department of Administration by the nonpartisan Legislative Audit Bureau (LAB) indicates the Division needs to conduct a more thorough and accurate review as it oversees the gaming operations of 11 tribes that have negotiated compacts with the State. Oversight of Indian gaming is critical because casino players expect the games to be fair. The state and the tribes rely on accurate accounting of revenue to calculate payments the tribes make to the state. Compacts between the state and the tribes require tribes to inform of instances where amounts recorded by a meter in, for example, a slot machine, differ by at least three percent and more than $25 from amounts counted by casino staff. When there are differences, tribes are required under the Compacts to investigate and explain the cause since the discrepancies could point to possible theft or fraud at the casinos. The LAB examined 2006 daily revenue recorded in the State’s Data Collection System that stores data on the transactions of electronic gaming devices, and found differences between amounts recorded by the electronic meters and amounts counted by casino staff for every day of the year. Making matters worse, the LAB found the Division was unaware of almost all of the discrepancies the LAB discovered. The Division claims the problems were due to computer errors. Between March 2006 and April 2007, the LAB also found the Division did not review data kept by casinos to determine if the tribes had identified, investigated, and documented differences between amounts recorded by electronic meters and amounts counted by casino staff. While the LAB was conducting its research in May 2007, the Division once again began conducting the required reviews, after a lapse of 14 months. It is alarming the Division not only was unaware of problems in the state’s data collection system, but also failed for over a year to conduct required reviews of the differences between data from electronic meters and data collected by casino staff. The audit by the LAB uncovered some important numbers:
· The State’s revenue from gaming totaled $121.3 million in Fiscal year FY 2005-06.
· Tribal gaming revenue increased from $1.0 billion in 2002 to $1.3 billion in 2006.
· Tribal gaming profits, or revenue in excess of expenses, increased 13.3 percent, from $490.8 million in 2002 to $555.9 million in 2006.Two years ago, after a similar audit, I issued a press release that Indian tribal casinos are cash cows and that Governor Doyle should negotiate compacts where tribes pay their fair share that result that result in the maximum payments possible to the state. After the latest audit, I continue to believe that compacts must be negotiated that give the state a better take. I agree with the LAB recommendations that the Division of Gaming report to the Joint Legislative Audit Committee by January 31, 2008, on steps it has taken to ensure the State’s Data Collection System and the casinos’ electronic accounting systems are recording and calculating gaming revenue correctly, and the Division of Gaming, in every casino, incorporate procedures for determining whether tribes are appropriately identifying, investigating, and documenting differences between amounts recorded by electronic meters and amounts counted by casino staff. I also renew my belief that the Legislature should have oversight over Compact negotiations. This is an authority that should not be exclusive to the Governor, Republican or Democrat. Once again, the LAB has done a thorough examination and I commend the Bureau on its outstanding work. Here is a link to LAB web site with complete details on the audit.
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By Mary Lazich
Thursday, Jul 26 2007, 01:33 PM
The Wisconsin Legislative Audit Bureau has completed a review of a formula used by the state Department of Administration to determine the prosecutorial staffing needs in counties throughout the state. Concerns were raised about the formula’s accuracy. The formula looks at current staffing levels and the number and types of cases prosecuted. It is called the weighted caseload formula. The audit found the following: • There is a trend that has developed in recent years. Staffing levels of prosecutors have gone down while caseloads have increased. • The weighted caseload formula system may be sound, but it needs improvement. The number of full time prosecutor positions decreased from 444.35 positions in July 2002 to 424.65 positions in July 2006. Staffing levels are down. Then you look at the numbers involving caseloads. From 2001 through 2005, the number of criminal cases prosecuted by district attorneys’ offices increased by 11.5 percent statewide, and the number of felony cases increased by 16.2 percent. The result has been that prosecutions are less timely, there has been an increase in decisions not to prosecute cases, and many cases are settled out of court with more lenient punishments. Such consequences are unsettling if we are going to be serious about fighting crime. The audit found that in August 2006, using the current formula to determine staffing needs, 63 counties were understaffed by a total of 119.16 full time positions, while 8 were slightly overstaffed by a total of 1.83 full time positions. Wisconsin is understaffed by 117.33 full time positions. Milwaukee County has 121 positions, just under the 125 it needs. The Legislative Audit Bureau discovered the formula relies on incomplete data and out-of-date measures of the time required to prosecute cases. The Audit Bureau recommends implementation of a data system called PROTECT that would provide more accurate information. It also suggests the Legislature determine if current staffing levels justify the addition of new prosecutorial positions. Taking into account the state’s fiscal problems and other funding priorities, the Audit Bureau suggests the Legislature examine potential methods of decreasing the workloads of prosecutors. Smaller counties could develop “floating” pools of assistant district attorneys who could work in counties that suddenly experience heavier, unanticipated workloads. The Legislative Audit Bureau wants the Department of Administration to report back to the Joint Legislative Audit Committee by March 14, 2008 on short-term plans to improve the weighted caseload formula, and the department’s plans to implement a new, more accurate data system to measure the workloads of prosecutors. You can read the Audit Bureau’s report here.
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