Audit reveals violations of Memorial policy in '08

From paying for booze to allowing an employee to collect mileage twice for the same trip, Memorial Health System violated its travel and training policy several times in the first half of 2008, an audit has found.

"The majority of Memorial's travel and training expenditures were processed in compliance with the policies that were established. However, we did note several instances of noncompliance," according to the audit, conducted by the office of City Auditor Jeff Litchfield.

Memorial, a city-owned enterprise with more than 4,300 employees, acknowledges it needs to do a better job following its travel and training policy, spokeswoman Cari Davis said Monday.

"I think that there's a huge number of requests that are processed," she said. "Every once in a while, a mistake is made. That said, the onus is on us to make sure that we follow our policies and procedures, so no excuses, only greater diligence."

Litchfield's office reviewed Memorial's travel and training expenditures from January 2008 through June 2008.

"There wasn't any specific concern or complaint," Litchfield said. "It's part of our annual review."

Memorial, which is made up of three hospitals on two campuses, spent more than $425,000 for travel and training during the six-month period reviewed by the auditor.

But the audit examined only 39 travel and training expenditures totaling about $109,000.

Among its findings:

• More than 40 percent of the expenditures reviewed in the audit contained at least one violation of Memorial's travel and training policy.

• An employee with a Memorial purchasing card apparently split two transactions "in order to circumvent the single-purchase limit assigned to the card," the audit states.

• An employee turned in mileage to and from Denver International Airport in addition to being reimbursed $75.49 for gasoline for a personal car. Davis said Memorial was reimbursed by the employee who "inadvertently" requested and received reimbursement for both gas and mileage.

• Receipts for meals were "not provided" in at least 11 instances.

• There were two instances where Memorial reimbursed the cost of alcohol. It's unclear whether an employee or a Memorial board member submitted the reimbursement requests.

"All I can say is that they were alcoholic beverages. I can't say who they were for or what beverages were purchased," Litchfield said.

Litchfield has the documents, but he said he's not authorized to release them.

"They're considered part of our ‘work papers,' and the only thing that's public from our office is the final report that's issued," he said. "But since this came from Memorial, you can get them from Memorial."

The Gazette requested the information from Davis, who said she would have to do some research.

Litchfield said his office will conduct another audit of Memorial's travel and training expenses next year.

"We will do a follow-up to see if they've either adjusted their policies or reminded employees to follow their policies," he said.

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Call the writer at 476-1623.

Read the audit document.