In accordance with s. 301.068 (6), enclosed please find the Becky Young Community Corrections Recidivism Reduction Report for fiscal year 2012. Please distribute this report to the appropriate standing committees under s. 13.172 (3).

This report outlines some of the steps the Wisconsin Department of Corrections has taken over the past year to further our agency efforts in focusing on outcomes, research and evidence-based practices. I would like to thank our staff for their dedication and hard work in the development and implementation of the Becky Young Community Correction Recidivism Reduction Plan. I applaud their commitment to ensuring every day that we have a safer Wisconsin.

We have completed our review of the Department of Administration's (DOA's) Division of Gaming, as required by s. 13.94 (1)(eg), Wis. Stats. The Division oversees Indian gaming, charitable gaming activities, and pari-mutuel racing in Wisconsin. However, the last operating greyhound racetrack in Wisconsin closed in December 2009. Statutes continue to authorize pari-mutuel racing in the State, but the Division has not received applications from businesses seeking to operate racing venues.

In fiscal year (FY) 2011-12, the Division's expenditures to regulate gaming activities totaled $2.3 million in program revenue. We analyzed a judgment sample of its expenditures over a three-year period and found that reimbursements were sufficiently documented and appear to be reasonable.

Indian gaming represents the most significant gaming activity in Wisconsin. In June 2012, 11 tribes operated 25 casinos. In 2011, tribal gaming revenue was $1.3 billion, tribal gaming expenses were $742.1 million, and tribal gaming profits were $566.7 million. In FY 2011-12, the State received $52.1 million from tribes under the revenue-sharing provisions of the negotiated gaming compacts.

The Division conducts on-site financial and compliance audits to independently verify the amounts wagered on Class III gaming and to ensure that casino operations are consistent with standards established in the gaming compacts. From January 2010 through July 2012, the Division conducted 66 financial audits and 55 compliance audits. We analyzed a random selection of working papers associated with audits completed in 2011 and 2012. The documents we reviewed were sufficient to show that the Division followed its audit procedures.

We appreciate the courtesy and cooperation extended to us by the Division. The Division's response follows the appendix.

Wisconsin Statute 238.07 (2) directs the board of the Wisconsin Economic Development Corporation to submit by October 1 an annual report on economic development programs of the corporation to the Joint Legislative Audit Committee and chief clerk of each house of the Legislature.

By request of WEDC Board members Sen. Julie Lassa and Rep. Peter Barca, the WEDC Board has directed delay of the report's submission to provide members additional time to review the report provided by WEDC staff to the Board at its September 20 meeting.

It is anticipated that Board review and approval will be finalized no later than November 1, by which time WEDC will provide the compilation of reports for all agencies.