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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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  • by RED Location: Monona on Mar 8, 2013 at 09:03 AM
    Hey Madison: Wasn't it the union that stood behind the police shooting? Wasn't it the union that gave the woman her job back after embezzeling $250,000 from taxpayers for Doyle? She served jail time and got another state job. How many employers in the "real world" would hire back a criminal?? YOU NEED TO GET A LIFE!
  • by Madison Location: Madison on Mar 8, 2013 at 06:30 AM
    I agree with Neil. Red you need to get a life. Union pretect the rights of employee's. I am not in a union, but was and was a union stuard. There were many times I had to tell the person to shape up. Union's do NOT condown workers the cheat or don't do there work!!!
  • by Neil Location: Madison on Jan 23, 2013 at 01:11 PM
    The UW system is an over staffed bureaucratic monster. The leadership groups wants to hire outside auditors when what it needs are qualified hands on management to ask the difficult questions and provide ongoing oversight. Procedures and controls by themselves will not fix the problem.
  • by RED Location: Monona on Jan 23, 2013 at 12:05 PM
    In the real world (private sector), this person would be rightfully terminated and possibly prosecuted for fraud. Once again the union protects an incompetent loser and taxpayers will pay for it..
  • by Raymond Location: Reality on Jan 11, 2013 at 11:26 AM
    Fired? If they can't fire that Middleton School teacher than what chance do they have firing someone who forgot to cut and paste?
  • by amanda on Jan 10, 2013 at 10:09 PM
    So that's where our increases in tuition went... what a crock.
  • by WIBadger on Jan 10, 2013 at 03:39 PM
    The group of incompetent people who were responsible for these "mistakes" should be fired/terminated immediately. Thankfully, the $17.5 million was credited back to the system. But, just as the doctors who wrote fraudulent "sick notes" were never seriously punished, I'm not expecting the UW to do "the right thing" here. Only in Madison.

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