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LAB: UW System overpaid health premiums, pensions

Published on NewsOK Modified: January 10, 2013 at 6:36 pm •  Published: January 10, 2013
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"We have taken steps to prevent this from happening again," system spokesman David Giroux said in an email.

Auditors also found the system made $17.5 million in overpayments to the Wisconsin Retirement System in 2011 for pension contributions. The report attributed the overpayments to manual mistakes in calculating contributions in April, May and July of 2011. ETF credited the system for the overpayments, the report said.

Auditors also examined the system's payroll and benefit software program, which tracks information for all staff and students. State lawmakers were skeptical about the multimillion-dollar program during its implementation after previous efforts to upgrade the software failed.

A review of program security at three institutions revealed about 20 users could make unauthorized changes to add workers and generate paychecks, suggesting broader security problems that could lead to unauthorized payouts, the report said.

The system also has delayed a security review it had expected to complete by this past summer, the report found.

UW System employees started using the software in April 2011. The report said system managers told auditors more users had access they didn't need for their jobs because the system spent the last fiscal year stabilizing the software. They said they're evaluating removing employees' ability to make changes to the software and plan to begin their security review early this year.