Healthcare staff in the Mid West region were overpaid €1.3 million in salary, expenses and pensions by the HSE over the past two years including one overpayment of over €30,000, according to the findings of an internal audit.
However, it revealed that only just over €948,000 had been recouped so far with almost €237,000 in overpayments having been written off since 2021.
The audit report also highlighted how 61 individuals owed at least €5,000 each back to the HSE at the end of October last year.
Overall, a total of 806 employees or pensioners each owes the HSE an average of €1,484 due to overpayments.
The report by HSE internal auditors found the adequacy and effectiveness of control systems for payroll overpayments and recoupment in the HSE Mid West region, which covers healthcare staff in Limerick, Clare and North Tipperary, was "unsatisfactory".
It found that controls operated by the payroll department created "a serious and substantial risk that the system will fail or has failed to meet its objectives" and that they required urgent action.
The report noted that the HSE Mid West's payroll department pays out approximately €500m annually to almost 10,000 employees and 1,500 pensioners.
Auditors found two-thirds of all those who owed money back to the HSE – a total of 505 individuals – had made no repayment to reduce their overpayment balance between January and October last year.
At the time of the completion of the audit at the end of October 2022, a total of €691,239 was still due to be repaid, of which €487,595 related to money owed since before January 2022.
The report found the main reasons for overpayments related to leaving, sick leave, reduced hours and unpaid leave.
A sample of 25 overpayments totalling €216,814 found only eight individuals had repaid the money in full.
Three others were repaying the outstanding debt by an agreed schedule with another two reimbursing the HSE on a sporadic basis.
However, 12 of the 25 individuals, including nine former employees, were not repaying any outstanding amount.
It revealed that one individual had been overpaid €30,210 due to "a late leaving action".
The report found that the agreed repayment schedule for three individuals exceeded the allowed timeframe under HSE regulations.
In addition, there was no evidence that approval was sought from a senior manager to sanction any of the repayment schedules as required.
One individual is repaying €200 per fortnight to clear an overpayment totalling €21,810.
The audit found no evidence in any of the 25 overpayments sampled that an initial letter was issued to the respective employee to explain the reason for the overpayment, the overpayment period and the repayment options.
In one case, an individual was first notified 29 months later that they had been overpaid.
The audit also found no evidence that any steps required under HSE regulations to investigate any case of an overpayment to prevent a recurrence had been carried out.
The report noted that overpayment write-offs were not being written on a quarterly basis as recommended by a management group within the HSE on pay-related overpayments.
The HSE agreed with all five recommendations to improve the control of overpayments and recoupment made by its internal auditors.
It said a new HR pay compliance unit had been established to review the appropriate actions to investigate different causes of overpayments.
