A number of state legislators on the Joint Legislative Audit Committee were critical of the University of Wisconsin System President Kevin Reilly in a hearing Tuesday about overpayments made to UW System employees.
A recent report by the state Legislative Audit Bureau brought public attention to $33 million dollars in overpayments to UW System employees for health and retirement benefits.
The committee voted in favor of another proposed audit by the state Legislative Audit Bureau to investigate what State Auditor Joe Chrisman referred to as a “material weakness” in the security of the UW System’s oversight and management of its payroll and Human Resources System.
State legislators on the committee expressed concern over the approach taken by the UW System and continued problems found in audits of the UW System.
"The concern I have is culture in the organization,” state Rep. Howard Marklein, R-Spring Green, said. “How seriously do you take this, and what is the tone at the top?"
Reilly, who appeared at the hearing to testify, said he was “deeply troubled” and “embarrassed” by the findings but said the UW System is continuing to take steps to address the issues.
Reilly said the UW System is currently working to get credit for the overpayments, with about $20 million already recovered, as well as making structural changes at the payroll service center to address additional issues.
Reilly added the UW System would provide the LAB with any information needed during the auditing process, in addition to having “an independent outside expert” perform a “comprehensive risk management assessment.”
“We respect your oversight role and are committed to working with you,” Reilly said. “With your help and support we will make the HRS system work better and more efficiently in the interest of the people of Wisconsin and I do ask for your help and support in that spirit.”
State Rep. John Nygren, R-Marinette, said he hopes the UW System will take the situation seriously.
“Your folks do a great job of lobbying each and every one of us about the need for funding,” Nygren said. “I would just, as you try to change the culture at the UW System, remind them that every dollar that's wasted is one less dollar that can be used in the classroom and education of our best and brightest. I hope we do take this seriously.”
