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NHS Pay Fraud and Errors 2010

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People Management reported a case recently where an NHS employee was paid for a period of nearly two years after she left her job. The ex-employee began to receive payments in April 2008, almost a year after she left the Trust.

According to reports, errors transferring staff information at Calderdale Primary Care Trust during the migration of data to the Electronic Staff Record (which went live in April 2008) causedThe error was eventually identified during an internal audit exercise in January 2010.

Yvonne Atkinson, a healthcare support worker, had not alerted her former employer and received almost £22k over 22 months. Apparently her partner had persuaded her not to contact the employer. When challenged by the organisation, the ex-employee admiting knowing she was not entitled to the money and subsequently pleaded guilty to theft.

She was eventually sentenced to a four months’ suspended prison sentence and a 12-month supervision order.

Further problems came to light with NHS payroll arrangements earlier in the year when, in September 2010, around 350 employees at NHS Sefton, located in Bootle Merseyside, were notified they had received overtime payments due to a calculation error.

In this case there was no suggestion of dishonesty, errors relating to unsocial hours payments – an area where earnings can vary regularly and employees often find it difficult to keep track of the details.

At NHS Sefton, the overpayments ranged from £20 up to a maximum of £4,500 with overpayments totaling about £160k and the Trust contacted staff, asking them to pay back the amounts overpaid over a reasonable period – of up to three years.

Once again, the errors were identified as a result of audit activity carried out by the Trust’s new payroll provider carried out an audit exercise. Payroll procedures were changed to prevent such a problem recurring.

An NHS employee working for NHS Greater Glasgow also admitted to defrauding NHS Scotland of around £38k by claiming for hours that she had not worked at Stobhill Hospital between 2006 and 2008. After moving from a job as a cleaner to become a part-time administration assistant, while still working as a cleaner.

The employee recorded additional hours she worked as a cleaner and, after the records had been authorised by her line manager, the employee added hours which she had not worked and these papers were submitted for payment.

When the Trust’s management team queried a budget overspend, audit review uncovered the discrepancies and led to the scam being discovered. The employee was jailed for a period of eight months.

Oracle Self Service Payroll Errors leads to Qualified Accounts

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Photo:rracy o, flickr

Photo:rracy o, flickr

The MOD has recently received a qualified opinion from the National Audit Office on its 2008-09 accounts - due to weaknesses uncovered in payments to Armed Forces personnel.

The Joint Personnel Administration (JPA) system, an Oracle-based pay system delivered by EDS, uses self service to allow personnel to enter pay details relating to over £8.9 billion of staff costs per annum.

A sample taken by auditors revealed 14.7% of sample transactions exhibited a payment error, which amounted to 10.1% of the sample by value. An estimate of total errors using the sample showed £140m of net overpayments (including £30m from expenses).

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Reducing Payment Errors

12:25 pm in A Track Record by Attractor

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The HR Director of a Special Health Authoritycontacted Attractor to help resolve problems between the organisation and its outsourced payroll service. Payment errors were experienced by many employees and confidence in the service (and management) were being undermined.

The HR Director, recently joining the organisation, needed an independent view on the cause of the problems and the range of viable solutions.

Attractor agreed to respond quickly and assist the organisation to understand and address the issues, helping to build the confidence of employees and their representatives the problems were recognised and being efffectively addressed. Read the rest of this entry →

NHS HR and Payroll Data Quality

7:25 pm in A Track Record by Attractor

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A London teaching hospital had received a critical audit report which identified problems with payment outcomes. The level of overpayments was considered unacceptable and major changes to data management and payment control within the organisation had been recommended. Attractor was asked by the Deputy Director of Human Resources to -

  • provide an independent review of business structures
  • consider working arrangements and processes
  • identifyoptions for delivering the required changes
  • highlight key issues for change implementation

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NHS Payroll Problem-Solving

7:19 pm in A Track Record by Attractor

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A trust was experiencing problems with internal HR and Payroll operations, manifested by poor data quality, performance problems and payment errors. The Deputy Director of Human Resources invited Attractor to examine the department and make recommendations for change and improvement.

Attractor uncovered problems with team priorities – driving inappropriate work practices, timing of routines and tasks – plus unexplained variations in working method and business process. The department had, for some time, endured a history of fragile management practice with negligible investment in training and development of team members, resulting in low skill levels – all exacerbating the problems identified.

Attractor worked with new service managers to develop and communicate an service development plan incorporating actions on teams, tasks and individuals designed to address all identified weaknesses.

Outsourced NHS Payroll Changes

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Five NHS organisations employing over 16,000 staff ended a payroll contract with Capita after experiencing problems with late and incorrent payments plus a data security incident.

University Hospitals of Leicester trust, Leicestershire Partnership trust, Leicestershire County and Rutland primary care trust, Northampton teaching PCT and Northampton Healthcare trust subsequently entered into a contract with McKesson Shared Services.