DHBs face billion greenback invoice for incorrect depart funds

Inside Hospital generic

2021-07-22 13:10:32

District Well being Boards may owe as a lot as $1.1 billion to present and former workers in incorrect annual depart funds, and that quantity continues to develop.

Inside Hospital generic

File picture.
Photograph: RNZ / Dan Cook dinner

The DHBs’ non-compliance with the Holidays Act was first reported by the Workplace of the Auditor Common 5 years in the past.

RNZ reported on the problem in 2019, which acknowledged that DHBs have been nonetheless unable to say how of their employees are owed cash.

Within the not too long ago launched 2019/2020 audit, it discovered cash owed to present and former workers goes again greater than 10 years in some instances.

“Progressing the fee of the cash owed must be a excessive precedence.”

The Workplace of the Auditor Common famous funding on this yr’s Finances to the Ministry of Well being to assist co-ordinate the work wanted to find out how a lot is owed.

“It can be crucial that the well being sector reforms don’t gradual progress and that DHBs work collectively and with the Ministry of Well being to resolve excellent points and start making funds to present and former workers,” it mentioned.

The audit reported the combination DHB deficit was $1.049bn, with just one DHB reporting a surplus and two DHBs reporting a outcome higher than price range.

“Unbudgeted prices affected these outcomes, specifically the provisions for Holidays Act liabilities, which elevated by $386.5 million in 2019/20,” it mentioned.

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Supply by [earlynews24.com]