Second Report of the Auditor-General for the year ended 30 June ...

An audit review of the financial procedures relating to the
operatioris of the scheme indicated a number of control
weaknesses arxj deficierKiies. These included:
the failure of the Coranission to establish the "bona fides"
of travel ^plicants prior to the issue of travel vouchers
arxl tickets; arxj
inadequate authorisation and accounting procedures relating
to the control arxl reconciliation of travel vouchers and
tickets received, issued and on hand.
Audit recommended that the Coranission review these procedures to
overcome the control deficiencies identified.
(2) In addition, it was noted that the Health Coranission meets the
State transport authorities' "full fare" costs of providing
travel under the scheme although approximately two thirds of
scheme users are pension cardholders and thereby entitled to
concessional fare rates. It has been estimated by audit that if
travel payments under the scheme relating to pensioner claimants
were made by the Coranission on the basis of concessional fare
rates, a reduction of approximately $90 000 in the scheme's cost
outlay for the year would have been achieved.
Audit reccmmerxJed that the Coranission pursue with the relevant
transport authorities the feasibility of tra»7el payments to
pensioner applicants being made on the basis of the autJxorities'
concessional fares.
Defalcations and Irregularities
4.3.7 During 1983-84 the Coranission notified audit of the following:
(1) North West Victorian Ambulance Service - Cash Misappropriation
An officer of the Service misappropriated cash of $72 185
through the payroll system.
Followirxj police investigations the officer was charged with 80
counts of misappropriation covering the period from July 1981 to
June 1983. The case was heard at the County Court, Mildura on 15
Decemtjer 1983 arxl the officer was sentenced to 3 years
imprisorment and ordered to pay compensation of $72 185 to the
North West Victorian Ambulance Service.
Recovery of the compensation from the officer was unsuccessful
arxJ consequently action was undertaken against the auditor
appointed by the Health Coranission which resulted in a payment
of $47 794 from the auditor's insurer. This sum related to the
moneys misappropriated after 30 June 1982 which apparently was
the period of liability covered by the insurer. Further action
to recover the balance from the auditor is being considered.
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