During this spring’s budget hearings, it was revealed that the University of Wisconsin System had large cash balances sitting in reserve. In response, the legislature froze tuition for two years and directed the Legislative Audit Bureau (LAB) to audit the UW System’s program revenue balances.
LAB found that the UW System’s program revenue balances totaled more than $1 billion as of June 30, 2013. Of that amount, LAB focused on reviewing the $755.4 million in balances that did not have a restricted use. The audit broke the total $755.4 million unrestricted balance into five categories: obligated, planned, designated, reserves, and undocumented. 18.8%, or $142.2 million, was “undocumented” meaning it had no documentation of an obligation or plan for the funds.