[Canada] Health P.E.I. payroll audit found costly HR control gaps

In Canada, a recent auditor general’s report into Health P.E.I. found that managers received thousands of dollars in payments which failed to meet policy requirements, HR Reporter reports.

It also revealed that rules governing job reclassification were not followed.

Melanie Fraser - the agency’s CEO - reportedly said she first learned of possible problems in 2024 when an employee raised “concerns with payroll activities.” 

Ms Fraser asked P.E.I. auditor general Darren Noonan to conduct a formal review; the resulting report identified serious gaps.

According to CBC reporting, one employee whose duties had changed received retroactive pay going back 935 days, despite provincial rules limiting such adjustments to 60 working days. This resulted in an overpayment of $34,500.

In another area, managers classified as excluded staff were paid overtime and vacation, despite their agreement stating that “under the terms and conditions of the excluded employees agreement, you're not supposed to pay out time-in-lieu.”

A statement from the Auditor General's office said that, outside the thousands of employees on its payroll and compensation plan, "excluded" employees are governed by the Civil Service Act, with "specific terms and conditions of employment."

Its audit uncovered "instances of excluded positions that were created and filled by Health P.E.I. without being classified or reported to Treasury Board as required," the statement said. It added that vacation and time-in-lieu payments to excluded employees showed "inconsistencies with approvals, rationale, and tracking of time." 

Ms Fraser has reportedly forwarded the report to P.E.I.’s attorney general, now also the premier, to determine whether the issues rise to the level of fraud.

Source: HR Reporter

(Link and quotes via original reporting)

In Canada, a recent auditor general’s report into Health P.E.I. found that managers received thousands of dollars in payments which failed to meet policy requirements, HR Reporter reports.

It also revealed that rules governing job reclassification were not followed.

Melanie Fraser - the agency’s CEO - reportedly said she first learned of possible problems in 2024 when an employee raised “concerns with payroll activities.” 

Ms Fraser asked P.E.I. auditor general Darren Noonan to conduct a formal review; the resulting report identified serious gaps.

According to CBC reporting, one employee whose duties had changed received retroactive pay going back 935 days, despite provincial rules limiting such adjustments to 60 working days. This resulted in an overpayment of $34,500.

In another area, managers classified as excluded staff were paid overtime and vacation, despite their agreement stating that “under the terms and conditions of the excluded employees agreement, you're not supposed to pay out time-in-lieu.”

A statement from the Auditor General's office said that, outside the thousands of employees on its payroll and compensation plan, "excluded" employees are governed by the Civil Service Act, with "specific terms and conditions of employment."

Its audit uncovered "instances of excluded positions that were created and filled by Health P.E.I. without being classified or reported to Treasury Board as required," the statement said. It added that vacation and time-in-lieu payments to excluded employees showed "inconsistencies with approvals, rationale, and tracking of time." 

Ms Fraser has reportedly forwarded the report to P.E.I.’s attorney general, now also the premier, to determine whether the issues rise to the level of fraud.

Source: HR Reporter

(Link and quotes via original reporting)