Waikato DHB tightens processes around expenses after Nigel Murray scandal

Dr Nigel Murray.

Staff travel will now go through rigorous checks before sign-off at Waikato District Health Board as a result of Dr Nigel Murray's spending.

The reason for the business travel must now be "explicit and meaningful and supported by evidence" the DHB announced today with the release of a damning Audit NZ report into the former chief executive's $218,000 expenses.

The audit report, which the Herald revealed on Friday, showed Murray's expenses were a mess and that he made international trips while on sick leave, used taxpayer money for personal jaunts, booked travel without approval and tried to hide the breaches.

Today the DHB said it had made improvements to its management and authorisation of expenses as a result of the audit's seven recommendations.

They included that the DHB:

• Ensures compliance with its policies for approval of travel arrangements;

• Clarifies its expectations for the authorisation of changes to travel arrangements;

• Ensures the business purpose for the travel is clearly set out in the approval requests with supporting documentation;

• Reinforces and reminds staff that policy does not provide for the DHB to pay for any expenses relating to personal travel or accommodation;

• Ensures compliance with the DHB's processes. Consideration should be given to controls to prevent override.

Spokeswoman Lydia Aydon said the DHB's travel provider has a list of names for DHB travel co-ordinators who are allowed to make travel and accommodation bookings and changes.

"Only the names on these lists are allowed to transact any normal bookings and changes through the travel provider."

The DHB's corporate travel provider would now notify any after-hours booking changes, she said, and the manager of the travel office would follow this up with the employee's manager, or chair in the case of the chief executive.

Payroll would now advise managers of issues with claim forms and return the claim, unpaid, for correction.

Executive director of corporate services Maureen Chrystall said the DHB had released the section of the normally confidential audit because of public interest.

She said the DHB accepted all the findings and recommendations in the report.

"The recommendations relate to future compliance with the board's policies and procedures and we are working through a process to ensure staff understand the policies and process and are complying with them.

"We will monitor compliance on a regular basis."

Murray resigned in October amid the scandal and still owes the DHB less than $50,000.

Board chairman Bob Simcock resigned on Tuesday after the Herald revealed the Serious Fraud Office was looking into the case.

A State Services Commission investigation is ongoing.