MADISON (WKOW) -- The UW System overspent $15.4 million on health insurance premiums and $17.5 million on employee retirement funds, according to a report from the Legislative Audit Bureau.
From May 2011 through September 2012, the report identified $8 million of the $15.4 million in overpayments were for health insurance premiums paid for 924 employees who no longer worked there. The report also showed the UW System overpaid the Wisconsin Retirement System $17.5 million for the calendar year of 2011.
"We're embarrassed quite honestly. This should not have happened and it cannot happen again," UW System spokesman David Giroux said. Giroux said the mistakes occurred because of a disconnect between two databases, their Human Resources System and the Department of Employee Trust Funds. He said they've been working on the problem and want to make sure nothing like this happens again. "We really want to bring in somebody who's an expert in this area, somebody who's outside the University to come in and double check our work," he said.
Representative Samantha Kerkman also thinks their work should be double checked. "This shows that they have not been accountable. I mean there's a lack of oversight -- that they do not recognize that millions of dollars were being overpaid and overspent," she said.
The Department of Employee Trust Funds has credited the system for the $17.5 million overpaid to the Wisconsin Retirement System. Giroux said the UW-System has been able to recover $2.4 million of the overpayments in health insurance premiums. According to the report, provisions in the contracts between the State and health insurance providers limit the UW System's ability to recover the full amount.
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