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Audit accuses hospital staff of cooking the books
Friday, 8 Apr 2016 13:20:48
The report says other staff knew about the financial mismanagement but did not report it. (Nikki Challis: ABC News)
Gross financial mismanagement has been uncovered at Canberra's Calvary Public Hospital.
The government-funded hospital in Bruce, which treats tens of thousands of people each year, was criticised by an independent financial audit.
A scathing report by the ACT auditor-general, Maxine Cooper, found staff and executives engaged in inappropriate financial practices.
The report said an executive admitted faking meetings and documents to hide the loss of more than $5 million.
The hospital reported a $2 million surplus and then a $9 million loss just two months later.
Dr Cooper looked at the period between 2012 and 2014 and found irregularities of about $9 million.
The hospital's then chief executive officer, Ray Dennis, resigned suddenly in early 2014.
Dr Cooper said the financial mismanagement was a "major concern" and has made several recommendations to the ACT Government.
She said it should consider whether it was appropriate for the Calvary Network Agreement to be used to deliver services at Bruce and whether staff should continue to be employed.
The report found other staff knew about the financial mismanagement but failed to report it.
The not for profit organisation in charge of Calvary Hospital has not returned calls.
Health Minister Simon Corbell has been unavailable for comment this afternoon.
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