Terminated Public Servants Still Receiving Pay – One Received $300,000
- A recent audit of 40 New South Wales (NSW) state agencies revealed meaningful failures in payroll management, resulting in approximately $300,000 in overpayments to one employee and continued...
- The audit focused on payroll practices across various NSW government departments and agencies.
- The audit identified several contributing factors to these errors, including inadequate separation of duties, insufficient training for payroll staff, and a lack of robust controls to identify and...
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NSW Government Overpayments: Audit Reveals Millions Paid to Terminated Employees
A recent audit of 40 New South Wales (NSW) state agencies revealed meaningful failures in payroll management, resulting in approximately $300,000 in overpayments to one employee and continued payments to 481 terminated employees, some as far back as 2018. The findings, published in a report by NSW Audit Office, highlight systemic issues in the state government’s ability to accurately manage employee payroll after termination.
The audit focused on payroll practices across various NSW government departments and agencies. The most significant finding involved one employee who received nearly $300,000 in overpayments.The report details that 481 terminated employees from a single agency continued to receive payments during the last financial year, with some having left their positions in 2018. The full audit report provides detailed findings and recommendations.
Key Findings of the NSW Audit
The audit identified several contributing factors to these errors, including inadequate separation of duties, insufficient training for payroll staff, and a lack of robust controls to identify and stop payments to terminated employees. the report specifically noted deficiencies in the processes for updating employee status in payroll systems following resignation or dismissal. The Guardian reported that the NSW government accepted all recommendations from the audit.
Financial Impact
While the exact total amount of overpayments is still being calculated, the audit confirmed at least $300,000 was overpaid to a single employee. The continued payments to the 481 terminated employees represent a substantial, ongoing drain on public resources. The NSW Audit Office is continuing to investigate the full extent of the financial losses.
Agency Responses
Agencies were required to provide responses to the audit findings, outlining their plans to address the identified weaknesses. These plans generally involve strengthening internal controls, improving staff training, and implementing more automated systems for managing employee terminations.