TOP-UPS GIVEN TO FOUR MANAGERS AT HOLLES STREET BROKE ‘STRICT’ PUBLIC PAYMENT POLICY
THE salary top-ups paid to four senior National Maternity Hospital managers violated public sector pay policy, the HSE audit published yesterday concluded.
The internal audit report concludes unequivocally that the controversial top-up payments, which were the subject of a Public Accounts Committee hearing in 2013, did not comply with public pay regulations.
The deputy chairman, board secretary and Master of the NMH, as well as a consultant nominee, are the four individuals the report identifies as being in receipt of additional payments which breach policy.
‘In internal audit’s opinion, the additional payments to the four senior managers, whether paid through the NMH payroll or through any other means, are non-compliant with Health Sector Pay Policy,’ the report’s author, Dr Geraldine Smith writes. The report quotes a 2013 circular from the Human Resources department of the HSE, on ‘compliance with the health sector pay policy. That circular states: ‘Under public service pay policy, the Department of Health Consolidated Salary Scales, as sanctioned by the Minister for Health, set out the current salary scales for public health service staff.
‘These salary scales must be strictly adhered to and in no circumstances should an employee receive remuneration in the nature of pay and allowances of an amount greater than the amount prescribed. Non-Exchequer sources of funding may not be used to supplement approved rates of remuneration.
‘It is noted that the standard Service Agreement between Section 38 providers and the HSE requires that remuneration in Section 38 bodies conforms to public sector pay norms.’ Staff employed under Section 38 of the 2004 Health Act are classed as public servants.
The audit report says that, ‘based on the evidence available... the additional payments to the four senior managers are primarily due to NMH senior staff providing management services, including using NMH administrative facilities and administrative systems on behalf of NMH to the Semi-Private Clinic (Medical Fund) a private entitiy.’
It also says the HSE was not assured that the money paid by the NMH on behalf of the SemiPrivate Clinic to three senior staff had been repaid by the clinic to the hospital.
In its response to the HSE’s draft internal audit, Holles Street rejected this criticism.
‘All of these contractual arrangements predate the circular by many years. The issue of compliance cannot arise,’ it said. ‘It is evident from the HSE’s own comments and reviews that, within the hospital sector, it is common practice for senior staff to be paid additional amounts, ie in line with pay norms within the sector. We note that the HSE is in receipt of 85 business case applications, from 25 agencies, in regard to such payments.’
Non-Exchequer sources not okay ‘It is common practice’