The Digital Health Record may cost us a lot more than it should have. Photo: Lottie Twyford.
ACT Health’s processes for managing payments for services provided in its $110 million contract with private company NTT Australia have been labelled “poor” and “ineffective” by a government audit.
The ACT Auditor-General’s Performance Audit Report, released on Friday (13 December), found “deficiencies” were such that ACT Health couldn’t provide an assurance that “services paid for were actually received or that the price paid for those services was the correct price”.
“It’s outrageous that the ACT Government is paying for services without knowing if they’ve been delivered,” Independent MLA Thomas Emerson said.
“Almost a quarter of a billion dollars has now been wasted, during a cost of living crisis, on three separate failings identified recently by the Auditor-General. Meanwhile, community organisations are crying out for funding to help people who are sleeping rough or going without food.”
In 2020, ACT Health engaged NTT Australia to host its Digital Health Record, an online portal that enables the public to view their medical records. The contract was initially worth $66 million but two subsequent variations saw it balloon to cost taxpayers $110 million.
The Auditor-General found that sloppy bookkeeping by the bureaucracy may have led to funds being wasted.
“A review of invoices with work orders and purchase orders found a lack of detail in invoice line items to sufficiently describe the services being purchased and a lack of complete documentation in work orders and purchase orders to identify in sufficient detail the services being provided,” the report stated.
Thomas Emerson has described the waste as “outrageous”. Photo: Michelle Kroll.
The audit also revealed ACT Health does not retain records of its analysis to verify that services have been received satisfactorily.
It also found ACT Health made five transactions without either a work order or purchase order.
“Having neither a work order nor purchase order seriously undermined the integrity of the procurement process and exposes ACT Health to significant risks. By not following established procurement procedures, it was difficult for ACT Health to demonstrate that purchases are necessary, appropriately budgeted for and properly authorised,” the report said.
The auditor general made six recommendations, including that ACT Health should ensure appropriate records are captured and retained to demonstrate the analysis of services received prior to payments made to NTT Australia.
In response to the audit, ACT Health said it has now “proactively engaged independent sources to investigate areas of concern as they have arisen and has implemented a structured and thorough response to addressing the findings and recommendations”.
“With regard to NTT invoice processing and payments, the Directorate has implemented additional control procedures from the end of January 2024 in response to the management initiated Internal Audit NTT Australia Invoices,” it said.
Mr Emerson has called on the ACT Government to lift its game.
“Ratepayer money is being wasted freely without any apparent accountability or political consequences. The Minister for Health needs to take responsibility for repeated instances of significant mismanagement in her portfolio,” he said.
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