A performance audit into the transfer of the ACT Public Service workers’ compensation responsibilities from Comcare to the Territory has found the Territory doesn’t have sufficient assets to cover its workers’ comp liabilities.
In his audit report 6/2020, Transfer Of Workers’ Compensation Arrangements from Comcare, Auditor-General Michael Harris says while the rights and obligations of being a self-insured licensee have transferred to the ACT, the transfer of assets (funds) from Comcare to the Territory is yet to occur.
“The Territory and Comcare are yet to reach an agreement on the quantum of assets to be transferred,” Mr Harris said.
“As a result, the Territory does not currently have sufficient assets in its Public Sector Workers’ Compensation Fund to cover its workers’ compensation liabilities,” he said.
“Although the Fund is able to seek additional premiums from ACT Government Agencies, or supplemental funding from the Territory Budget or a Treasurer’s Advance to cover its workers’ compensation liabilities, the continuing uncertainty associated with the transfer of the assets presents a financial risk to the Territory.”
Mr Harris said the uncertainty restricted the Territory’s options to manage its workers’ compensation liabilities.
“The longer the issue remains unresolved the greater the financial risk to the Territory as it has fewer options to manage any potential increases to its workers’ compensation liabilities,” he said.
“Nevertheless, the audit found that the Chief Minister, Treasury and Economic Development Directorate, in cooperation with Comcare and Employers Mutual Limited (the Territory’s claims management services provider), implemented effective governance arrangements for the Territory’s transition to self-insurance and the transfer of claims data,” Mr Harris said.
He said the Directorate had also developed effective governance arrangements for the management and oversight of the Public Sector Workers’ Compensation Fund.
The Auditor-General made no recommendations in his report.
The 85-page audit report can be accessed at this PS News link and the audit team was Laura Thomas, David Kelly and Taylah Commisso with an outside consultant.
