The University of Connecticut’s sign at the entrance to the campus in the Storrs section of Mansfield, Connecticut. Credit: Hugh McQuaid / CTNewsJunkie

A newly released audit of the University of Connecticut has found that while the state’s flagship university has made strides in addressing previously raised issues in the school’s handling of employee salaries and other financial controls, several issues persist.

In a 25-page report released Monday that covers the 2022 and 2023 fiscal years, the state Auditors of Public Accounts found seven areas of deficiency, six of which are repeat findings from the previous auditor’s report. These include the need to improve controls over external vendors, better monitoring of employees using tuition waivers during work hours, and the need for better software inventory records.

The most noteworthy finding in the report was that UConn did not properly approve 1,049.5 hours of compensatory time earned by 15 employees. Nine employees earned compensatory time with no approval on file, five employees earned compensatory time via blanket authorization, and three employees accrued more than their approved compensatory time.

Rules regarding compensatory time are covered by UConn’s Professional Employees Association’s (UCPEA) collective bargaining contract. As a result of employees sometimes being required to work beyond regularly scheduled work hours, they are awarded compensatory time off to be taken at their discretion. However, prior to working additional hours, the employee must complete the appropriate forms and receive individual approval.

Auditors reviewed the records of 812 employees who accrued over 47,000 hours of compensatory time, and selected 15 employees who accounted for 14% of all accrued time, and examined almost 1,200 hours they accrued over two months.

According to the report, departments failed to use or could not locate compensatory time authorization forms for 738 hours, covering nine separate instances. In five instances which totaled almost 225 hours, departments inappropriately used blanket authorizations which approved compensatory time for the entire fiscal year, and in three instances totaling 86.5 hours, employees accrued more time than they were approved for.

The audit noted that this finding has been present in the last two reports.

“The University of Connecticut should strengthen controls to ensure compliance with the provisions set forth in the University of Connecticut Professional Employees Association’s contract and Compensatory Time Guidelines for Management,” the auditors wrote in their recommendation.

UConn did not dispute the findings of the auditor’s office, and said that it agreed that more efforts in communication, guidance, and training would enhance compliance with the UCPEA contract.

“The University will continue to provide documented guidance and reminders to management concerning when employees are entitled to earn compensatory time, the requirement for prior approval, recording, and utilization of compensatory time. The University is developing a central repository for all compensatory time supervisor approvals,” read a statement from the university included with the auditor’s report.

The other noteworthy finding regarding employee compensation dealt with the university’s tuition reimbursement program. The auditors selected 15 employees out of 135 who had received tuition reimbursement or waivers, and found that seven employees had taken classes during regular work hours without submitting the necessary forms. The finding was another repeat offens,e which auditors had noted in the two previous reports.

UConn did not dispute this finding either, and pledged to modify the tuition waiver system to include internal audits to catch issues in the future.

Still, UConn made progress over its last audit report, released in 2023. That report had 22 findings, and UConn resolved 16 of them over the last two years, according to the auditors.

RALEIGH — A new performance audit from the North Carolina Office of the State Auditor (OSA) has confirmed actuarial projections showing growing net losses and a cash deficit for the North Carolina State Health Plan for Teachers and State Employees.

The State Health Plan provides health coverage to nearly 750,000 state employees and retirees. Actuarial projections from 2024, which were used for financial forecasting by the State Treasurer’s Office, showed net losses for the State Health Plan of $199 million, $507 million, and $862 million for 2025 through 2027. Ultimately, the projections showed the State Health Plan having a $949 million cash deficit by the end of 2027.

OSA conducted a performance audit which confirmed the projections were done in accordance with Actuarial Standards Board practices and were reasonable and accurate.

“At the request of State Treasurer Brad Briner, the State Auditor’s Office provided our expertise with an independent examination of the financial forecasting of the State Health Plan,” said State Auditor Dave Boliek. “The work of our team verified the prior assessments. With the projections confirmed accurate and in accordance with professional standards, the scope of the issue at hand is now demonstrably clear.”

“Ensuring the financial solvency of the State Health Plan has been a top priority for me since day one in office,” said Treasurer Brad Briner. “I appreciate the Auditor’s team verifying the size and scope of the deficit that we are facing. State employees, retirees and their families deserve a transparent assessment of the finances of the Plan they rely on, and the information provided in this audit confirms that we are on the right path.”

As stated in the performance audit, the State Health Plan attributed the net losses to three main factors, including increases to medical and pharmacy costs, the state budget including $240 million less than what was requested, and more than $316 million in COVID-19 expenditures not being reimbursed by the State.

The full performance audit, including a response from the State Treasurer’s Office, can be viewed here.

The two children’s intensive care units in Ireland are “under strain” from severe overcrowding and staffing challenges, the National Office of Clinical Audit has found.

It has recommended urgent expansion of emergency transport for sick children to a 24/7 service due to the high number of crisis transfers from other hospitals.

The audit, published on Wednesday, found very high occupancy rates of over 95% during 2023 at the units in CHI at Temple Street and CHI at Crumlin hospitals.

There were 1,723 admissions, a 5% increase on the year before.

Respiratory illnesses were the most common, at 34% of admissions, with a “ a notable increase” of RSV cases, especially babies.

The overall survival rate for children was 97%. Among the children who died, four, aged between five and 15, donated organs.

Clinical lead for the audit Associate Professor Martina Healy highlighted the pressures.

“The data in this year’s report clearly show that while our paediatric critical care units deliver high-quality, life-saving care, the system is under strain,” she warned.

“We must continue to invest in staffing and develop regional paediatric high-dependency units to ensure safe and sustainable services.”

The audit recommended Children’s Health Ireland publish a workforce plan for the new children’s hospital, especially for the new critical care unit.

Some 68% of admissions were unplanned across both units. Some 60% of these at Temple Street came from other hospitals and 47% of Crumlin’s.

Meanwhile CHI said on legal advice it could not publish a report from 2021 on waiting list issues.

In a statement a CHI spokeswoman said they take the report “very seriously”.

“CHI considered the request to publish this report and sought legal advice, however, it is primarily a HR report where the confidentiality of those who participated and fair procedures need to be respected given the sensitive nature of the report,” she said.

She also raised questions about what she described as “inaccurate” issues reported, specifically “in relation to NTPF payments to a consultant”.

The National Treatment Purchase Fund pay for public patients on waiting lists to be treated in private healthcare facilities.

She said: “CHI can confirm that these clinics did not take place in the consultant’s private rooms. They occurred in a public clinic, in one of its hospitals, on a Saturday.

“It was a waiting list initiative for an outpatient appointment only. The NTPF funded the hospital for this waiting list initiative and there was no charge to patients. This was over and above the consultant’s contractual hours. There are no direct payments to CHI staff from NTPF.”

CHI chief executive Lucy Nugent said her priority was “operational governance of our organisation, positive experiences and outcomes for our children and young people as well as the ongoing support of our dedicated staff”.

The state’s funding body for reducing hospital waiting lists on Tuesday suspended funding for insourcing of patient care at Children’s Health Ireland hospitals.

The move by the National Treatment Purchase Fund follows concerns a CHI consultant had breached regulations by allegedly referring his public patients to a clinic he was running.

The clinics were reported to have been funded under the insourcing system offered by NTPF, this is where they support public hospitals to provide extra treatment for patients on waiting lists who cannot be seen in the normal course of a unit or clinic’s work.

The NTPF also funds public patients who receive care in private healthcare facilities.

They said in a statement on Tuesday: “Following serious concerns raised over the 2021 CHI report, the NTPF immediately placed a temporary pause on all insourcing work with CHI.

“It has initiated a comprehensive review of all insourcing work with CHI to gather the necessary assurances regarding compliance, value for money and appropriate use of NTPF funding mechanisms.” A spokesman said the key criteria for insourcing include the patients must be among those waiting the longest, the activities must be outside of core activity and not displace existing services.

He said no costs already funded by the HSE including staff can be included in the reimbursement claims. Any staffing arrangements for this extra work must be in line with HSE and public pay policy.

The spokesman said: “The NTPF is liaising with CHI at the highest level to obtain and review these assurances and is in close contact with the Department and the HSE.”

Financial crisis unfolds at Oklahoma’s Mental Health Department with an unexpected $28M shortfall. Explore the State Auditor’s insights on systemic issues and inflated payrolls.

By: Jordan Fremstad

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The Oklahoma State Auditor said the Department of Mental Health and Substance Abuse Services is short $28 million. This is the second audit released this week that digs into the agency’s questionable finances.

Part 1 of 2 audit reports of ODMHSAS’s financial management over five years

State Auditor Cindy Byrd said this is part one of two reports, but she found some glaring financial and systemic issues. She also said the urgency of this problem forced her office to delay other important audits.

The initial report showed ODMHSAS will need more than $28 million to get through the fiscal year. Byrd pointed to the agency’s questionable spending and missteps in budget planning.

“There’s no money missing,” Byrd said. “This agency was not communicating well with legislators about the true needs of the agency.”

Calls for ODMHSAS changes in leadership

Gov. Kevin Stitt asked Byrd to look at the financial management of the department to help lawmakers craft next year’s budget. ODMHSAS commissioner Allie Friesen told lawmakers this month her agency wouldn’t make payroll.

Attorney General Gentner Drummond called for Stitt to fire her from her position. Friesen has blamed past leadership for the budget confusion. Byrd said the facts point to several people.

Years of mismanagement under multiple leaders

“It is the result of multiple administrations,” Byrd said.

However, Byrd found questionable spending took place during Friesen’s time as commissioner.

“We saw a big spike in payroll services,” Byrd said.

Byrd’s report showed that last year alone, 38 people were hired with salaries of at least $100,000. There were 376 pay raises greater than 10% with an annual value of $4,073,948.

“That’s not typical,” Byrd said. “We feel like those positions need to be analyzed to see if they’re necessary for the mission of the agency.”

The need for qualified financial experts within the Department of Mental Health

Byrd said the agency needs experience and recommended ODMHSAS hire a qualified chief financial officer.

“Who has experience with Medicaid billing and understands governmental accounting,” Byrd said.

Byrd said the department needs experts who prevent mistakes and avoid a budget column filled with question marks.

“Making sure they’re steering them in the right direction,” Byrd said.

What’s next?

Byrd said her team is working on part two of this report, but she didn’t have a timeline. That report will reveal who is to blame for this financial shortfall.

“The taxpayers need answers on why an agency had a shortfall of close to thirty million dollars,” Byrd said.

In a statement, an ODMHSAS spokesperson said, “We’ve created a large table of external diverse experts to help us bring light and end years of corruption. We are reviewing Cindy Byrd’s document, and we look forward to the additional contributions from third-party investigators and financial auditors in the coming months.”

Byrd’s preliminary recommendations for ODMHSAS

Budget and Financial Practices

• Separate supplemental funds in a revolving fund to be used only for existing and essential fiscal year 2025 obligations, supported with documentation/explanations.

• Utilize realistic budget practices that reflect the agency’s true needs and financial position. Adequate funds must be requested for core operations.

• Comply with OMES monitoring efforts and financial practices as outlined in House Bill 2785.

Department Structure and Personnel

• Hire a qualified CFO with state government financial experience as soon as possible.

• Implement an internal audit department in line with 43A O.S. § 2- 205 and applicable internal audit standards.

• Evaluate the qualifications of recent executive hires, and consider shifting funding from unnecessary executive positions to fulfill operational obligations.

• Scrutinize recent and ongoing terminations to ensure they are not retaliatory.

Internal Controls

• Assess and improve the agency’s control environment and communication practices in line with Government Standards for Internal Control.

• Obtain an independent, in-depth audit of internal controls in key financial areas.