Environmental Improvement Fund (EIF) program legislation (s. 281.59 (3) (bm)1, Wis. Stats.) requires the Department of Natural Resources and the Department of Administration to submit to the Legislature and to the State Building Commission the first version of the EIF Biennial Finance Plan. The purpose of the Plan is to provide information on loan, loan subsidy and bonding levels for program operations in the 2013-2015 biennium.

If you have any questions regarding the Biennial Finance Plan, please contact Mary Rose Teves at 267-7683 or Michael Wolff at 267-2734.

Please find enclosed a hard copy of the Guide to Wisconsin Hospitals, FY 2011 produced by WHA Information Center pursuant to s. 153.22, Wis. Stats. The report was posted on our Web site in July 2012. Please feel free to download and print additional copies.

If you have any questions regarding the report you may contact me at 608-274-1820, 800-231-8340, or drickelman@wha.org.

This report is transmitted as required by s. 20.002 (11)(f), Wisconsin Statutes, (for distribution to the appropriate standing committees under s. 13.172 (3) , Wisconsin Statutes) and confirms that the Department of Administration has found it necessary to exercise the "temporary reallocation of balances" authority provided by this section in order to meet payment responsibilities and cover resulting negative cash balances during the month of August 2012.

On August 1, 2012, the Medical Assistance Trust Fund cash balance closed at a negative $14.7 million (its intra-month low). The cash balance was negative through August 31, 2012, when it closed at a negative $9.5 million. On August 14, 2012, the Environmental Fund cash balance closed at a negative $2.0 million. The cash balance was negative through August 31, 2012, when it closed at a negative $3.8 million (its intra-month low).

The Medical Assistance Trust Fund and Environmental Fund shortfalls were due to the difference in the timing of revenues and expenditures, were not in excess of the statutory interfund borrowing limitations and did not exceed the balances of the funds available for interfund borrowing.

A1047 The distribution of interest earnings to investment pool participants is based on the average daily balance in the pool and each fund's share. Therefore, the monthly calculation by the State Controller's Office will automatically reflect the use of these temporary reallocations of balance authority, and as a result, the funds requiring the use of the authority will effectively bear the interest cost.

Attached please find a copy of the UWHC Authority report on patient care, education, research, community service activities and a draft audited financial statement, as required by state law.

Please feel free to contact me if you have questions or desire additional information.

I am pleased to forward the Fiscal Year 2012 report on employment of customers of the Wisconsin Works (W-2) program. Included in this report are the number of W-2 job seekers employed by each state agency and the classification of each position filled from July 1, 2011 through June 30, 2012.

Through your efforts we have had a successful year in placing W-2 customers in state civil service positions. Of the 3,304 new hires to state employment, 157, or 4.75 percent were W-2 hires. This exceeds the state's hiring goal of 2 percent. Thank you for your ongoing commitment to this important effort.

Attached is a copy of the W-2 Hiring Report. Please contact Delores Butler at (608) 266-5709 or email OSERAffirmativeActionGeneralInfo@wisconsin.gov if you have questions or need additional information regarding this report.

Under ss. 758.19 (5)(e) and 758.19 (6)(d), Wis. Stats., each county is required to submit an annual report to the Director of State Courts that provides information on the actual amount of revenues collected and expenditures incurred by the county for the operation of its circuit courts. Pursuant to s. 758.19 (5)(i), Wis. Stats., the Director of State Courts is required to compile and annually submit the information to the Governor and the Legislature.

Questions regarding counties' reported financial information should be directed to the Court System Fiscal officer Brian Lamprech. He can be reached at 608-266-6865 or at brian.lamprech@wicourts.gov.

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.