5 August 2010
Media Release
Appropriate Spending on CE Credit Card
The release of credit card expenditure details for Nelson Marlborough District Health Board’s (NMDHB) Chief Executive (CE) has shown that all transactions were appropriate.
The analysis of credit card expenditure was part of information gathered for a recent Official Information Act request to all DHB CEOs.
John Peters has been CE of NMDHB for five years, and has responsibility to the public and the board for delivering health services to the value of $380m per year to the population of Nelson Marlborough district.
The analysis of DHB CEOs’ use of credit cards showed that there were different processes in each individual DHB for card use. In NMDHB the card is for CE work-related expenses including taxis and meals, professional development, conferences and accommodation where charge-back is unavailable.
While CE John Peters’ use of the credit card was high in comparison to some other CEs, NMDHB encouraged credit card use as a transparent and efficient means of recording expenses for accounting purposes.
Total expenditure on the card for $2008/09 was $21,300 and $10,400 for 2009/10 which covered 368 transactions, of which 249 were for taxis and 41 were for parking charges.
Almost one third of the total card expenditure for this two year period was for other staff members. This included conferences for staff members charged to the CE’s credit card, for convenience purposes, all of which was
appropriate DHB spending.
The majority of transactions were associated with the demands of Mr Peters’ role as a senior health executive on national and regional health committees (see attached list). These meetings and committees plan and coordinate regional and national health services. The majority of transactions on the NMDHB CE’s credit card were for taxis used while attending these meetings.
Mr Peter said, “You will note that since the National Health Board has taken on responsibility for areas that CEs previously worked on there has been a decrease in travel and meetings that I need to attend. I anticipate that these will continue to decline.”
The CE acts within his delegated financial authorisation where credit card expenses were concerned and Suzanne Win, Board Chair subsequently views and signs off expenditure.
Suzanne Win said she was comfortable with the analysis of the spending and the authorisation process for credit card expenditure.
“There is a policy for credit card use that Mr Peters adheres to and this process meets the approval of Audit New Zealand,” she said.
Mr Peters said, “There have been occasions where it was appropriate for me to charge meals to the card, for example in recognition of a Strategic Leadership Team member being farewelled or where it was appropriate to share a meal with strategic partners like the Primary Health Organisations.
“I am always mindful of the financial circumstances and have kept expenses to a minimum. However I do need to engage with others in local, regional and national planning and provision of health services.
“The expenses are all scrutinised by the annual audit process and no issues have been raised.”
The CE’s credit card is a Westpac Business Credit Card that is paid monthly with no interest charged.
ENDS
Credit Card Usage 2008/09 and 2009/10
|
Taxis
|
249
|
|
Parking
|
41
|
|
Other
|
71
|
|
*Purchase on behalf of others
|
7
|
|
368
|
*Purchase on behalf of other staff members 2008/09 and 2009/10 $9200.96
Health committees and meetings attended during the 2008/09 year and 2009/10 year
2008/09
Value for Money, Wellington (monthly although many were teleconferences)
SI (South Island) CEOs, Christchurch bi monthly
CEO Executive, Wellington bi monthly
National CEOs, Wellington monthly
NQIP (National Quality Improvement Programme), Wellington periodically
PFG, (Performance Framework Group) Wellington monthly
Health Management System Collaborative, Wellington starting off in September 08 and progressing through to end 2009
Strategic Leadership Team (SLT) Advance – July 08
Australasian Health Leaders Conference – August 08
Learning Set, Queensland – August 08
SLT Advance – October 08
International Health Leaders Conference – October 08
Innov’8 Conference, Wellington October 08
Learning Set, Tauranga – December 08
SLT Advance – March 09
HSRA Learning Lab, Wellington – March 09
Healthlink Conference, Wellington – April 09
SLT Advance – May 09
2009/10
Performance Framework Group – no longer attending
Health Management System Collaborative – no longer attending
CEO Exec
SI CEOs
National Quality Improvement Programme – no longer attending
National Institute of Health Innovation
National CEOs
Trip to UK (paid for by Ministry of Health) – September 09
Learning Set, Melbourne – October 09
SLT Advance – November 09
SLT Advance – March 10
Questions and Answers
Why is the CE’s card used for other staff?
Sometimes it is convenient that conference bookings or other purchases are made by credit card on line to receive early registration discounts. These items amount to nearly one third of the value charged to the CE’s card in the last two years.
Who audits the CE’s expenses?
These expenses are audited each year, as part of the focus on Sensitive Expenditure. No issues have been reported by Audit NZ with regard to the use of the CE's credit card. This is audited against the credit card policy as outlined below:
Sensitive Expenditure Policy Letter to CE and SLT
Credit Card
You have been issued with an NMDHB credit card. You may use the card for the purchase of:
- food and alcohol for a business meeting as *above
- petrol for a DHB vehicle when the preferred supplier is not available
- flowers on the bereavement of a senior staff member, Board or committee member or a member of their immediate family
- minor consumables for the DHB Office
- urgent changes to air travel that cannot be made through Orbit.
The card may be used for the following business expenses:
- professional work related subscriptions
- approved courses and conferences
- taxis and other transport when travelling on DHB business
- purchase of gifts on retirement.
You may not use the credit card for a cash advance unless exceptional circumstances arise, eg when travelling and your personal belongings are lost or stolen.
* Alcohol
You may pay for alcohol for a business related meeting with a supplier, contractor, other business partner and occasional appropriate staff functions. The amount is not to exceed $10 per person.
Why is NMDHB CE credit card usage higher than some other DHB CEs?
The use of a credit card for all possible transactions reduces the transaction cost of using alternatives such as taxi chits, and charge backs. It is also a very transparent means of reporting expenses.
As Nelson is not a major centre most meetings of a national or regional nature are held in Wellington and Christchurch with associated taxi charges to-and-from airports.
NMDHB’s CE participated in a higher than average number of national and regional activities over the two year period.
What is a Learning Set?
A Learning Set brings together people of similar roles to share experience and knowledge. This is appropriate professional development for the CE of a $380m health care service.
What is an Advance?
This is a two-day planning workshop for SLT.
Why did the Marriot Vancouver refund $2144.19 in 28 October 2008?
This amount was refunded after the CE discovered the hotel had charged the full room rate instead of the conference room rate.
Katherine Rock
Communications Advisor
Nelson Marlborough District Health Board
Ph 03 546 1824 or 0274466799
Private Bag 18
Nelson
|