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UPDATE: UW Official: No Evidence of Fraud in Overpayments

UPDATED Thursday, March 7, 2013 --- 3:35 p.m.

MADISON, Wis. (AP) -- A University of Wisconsin System official says there's no evidence of fraud following the discovery that the UW System overpaid $33 million for health insurance premiums and pension contributions over the past two years.

UW System executive Michael Morgan told the board of regents Thursday that the investigation is ongoing, but there's nothing to suggest that any of the money ended up in secret bank accounts.

The overpayments were revealed following a recent routine audit by the state. The UW System has recovered all but about $12 million, and Morgan says efforts continue to recoup those dollars.

Morgan says changes are being implemented to prevent further overpayments. He says the System has also hired auditors to oversee the changes and to evaluate further shortcomings with the system.

Copyright 2013: Associated Press

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UPDATED: Wednesday, January 23, 2013 --- 9:35 a.m.

MADISON, Wis. (AP) -- Citing a lack of oversight and a pattern of mismanagement, state legislators have ordered a broader audit of the University of Wisconsin System payroll and benefits processing.

The Joint Legislative Audit Committee ordered an audit by the nonpartisan Legislative Audit Bureau. A recent routine audit by the state found the UW System made $33 million in overpayments for health insurance premiums and pension contributions over the past two years.

The state audit also raised questions about the extent of other problems in payroll and benefit processing, including broader concerns about management and oversight that have been raised in previous audits.

The Milwaukee Journal Sentinel says the overpayments happened during a transition to a new Human Resource System in 2011. System President Kevin Reilly told lawmakers Tuesday that there were "glitches" when the new processing system went online.

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Information from: Milwaukee Journal Sentinel, http://www.jsonline.com

Copyright 2013: Associated Press
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Posted Thursday, January 10, 2013 --- 2:52 p.m.

MADISON, Wis. (AP) -- A new report says the University of Wisconsin System overpaid health insurance premiums and pension contributions by nearly $33 million in 2011 and 2012.

The Legislative Audit Bureau released a report Thursday that found the system overpaid health premiums by $15.4 million from May 2011 through September 2012. The report found $8 million in overpayments went to premiums for 924 employees who had been fired during that span. The system had been able to recover only $228,000 as of October.

The report also found the system overpaid $17.5 million in retirement contributions in 2011. The state Department of Employee Trust Funds has credited the system for the overpayments.

The report says system officials failed to reconcile the amount of premiums collected with coverage and made manual mistakes calculating retirement contributions.

Copyright 2013: Associated Press


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