FARMINGTON, Conn. — A report from the state auditors released Tuesday is critical of the University of Connecticut Health Center for a number of payroll policies, finding inconsistencies, oversights, and possible mismanagement of funds.
State agencies are routinely audited, and their reports are made public. The audits highlight a variety of practices and policies for state agencies, from payroll to inventory control.
The auditors found more than a half dozen areas where the practices of UConn Health were at odds with state policies and may have resulted in possible increased payments to employees. UConn Health responded to the issues within the report.
In this audit, covering fiscal years that ended on June 30, 2019 and on June 30, 2020, the audit looked at a sample of employees and their compensation.
Auditors found UConn Health did not make clear the terms of faculty clinical incentive payments to five faculty members in the School of Dental Medicine in their employment contracts. The auditors reviewed $555,955 worth of payments. “The University of Connecticut Health Center and its employees should agree on compensation terms and document them in the employee’s personnel file.”
In the report, UConn Health said they had engaged a consulting firm and will implement recommended changes by the end of 2021.
Nearly all of 21 annual performance evaluations were not completed for managerial employees. Auditors found 19 of those reviews received $290,492 in salary increases during the period examined. That averaged $15,289 per employee, of the sample group. “The University of Connecticut Health Center should conduct annual performance evaluations and maintain them in personnel files.”
UConn Health said they will follow up to see performance reviews were completed. They also said some raises, like those from promotions or market adjustments, were separate from the review process.
Auditors also reviewed 30 employees’ timesheets and found all but one had multiple instances where the proper approvals were not obtained. The total salary for the group was $7,126,847 for the time period. The finding had been reported in previous audits. “The University of Connecticut Health Center should not process timesheets for payment that lack employee and manager approvals.”
UConn Health said they disagreed with this finding.
“Hourly employees have no access to their timesheets and can only swipe at Kronos badge readers. Faculty are leave reporters and are not required to report their time worked," they said.
The school said if those timesheets were not approved, and then not processed, it would result in nonpayment to the employee in violation of federal and state law. The auditors said it was inconsistent to require approvals from only certain to certify their time.
The audit found four instances out of 15 reviewed in which UConn Health hired management employees at a salary higher than the established pay range. In these instances, starting salaries ranged from four to 17% higher than the maximum of the pay range. The University of Connecticut Health Center should follow established pay ranges when hiring. “If UConn Health believes its pay ranges are outdated, it should perform the necessary steps to appropriately update and comply with them.”
The school agreed with the finding and said the salary ranges have been in effect since 2013. “The data has indicated in some cases that we are behind the current market. Management agrees that it needs to review and update its salary ranges for certain managerial job classes and positions in order to reflect the current market conditions.”
UConn Health provided long-term disability insurance coverage to several managers hired prior to November 2011, and to union employees who receive disability retirement benefits through the State Employees’ Retirement System. The University of Connecticut Health Center should eliminate long-term disability insurance coverage for managerial employees and renegotiate bargaining contracts to avoid payments for benefits that are included in the State Employees’ Retirement System. UConn Health said they disagree with the finding, which has appeared in previous audits. They said only eight employees are impacted and have been employed since 2011. They are currently negotiating with the union over this issue.
During the audited period, UConn Health only requested $800,000 of the $1,177,542 it was owed through the Residency Training Program, leaving $377,542 with the Capital Area Health Consortium. The University of Connecticut Health Center should request the full amount it is owed through the Residency Training Program each year to maximize its operational cash flow.
UConn Health said, “At this time we are still in discussion about the calculation and potential accuracy of the dollar magnitude on cash flow. When this analysis is complete, any adjustments will be made if needed.”
In addition, the auditors recommended the school tighten controls on temporary, non-faculty employees. They also looked at compensatory time off. “State policy on managerial compensatory time [adopted in July 2019] states, ‘Compensatory time earned during the twelve months of the calendar year must be used by the end of the succeeding calendar year and cannot be carried forward. In no event will compensatory time be used as the basis for additional compensation and shall not be paid as a lump sum at termination of employment.’” The school said the issue was complex as it covered the years prior to the new policy.
Four years ago, the wife of a UConn Health faculty member was charged with killing her husband. The woman continued to collect his paycheck from UConn Health from the time he was killed in August 2017 until the time his body was discovered in June of 2018. That case exposed that no one tracked the fact that the dead man produced no work during that time and continued to get paid. At the time UConn also distributed an accounting of every full-time faculty member at UConn Health, listing the type of work, precisely, they are doing (research, clinical, teaching, mixed and the last contact with a faculty member.
Doug Stewart is a digital content producer at FOX61 News. He can be reached at dstewart@fox61.com.
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