Norway’s National Audit Office criticism of Nav sickness benefit case processing, Digi Mart USA News (Norway): Norway’s National Audit Office (Riksrevisjonen) has found errors in Nav’s fully and partly automated handling of sickness benefit cases. The office states that the system does not sufficiently ensure that sickness benefit payments comply with the National Insurance Act and the financial regulations.
The audit office is criticizing Nav, which it describes as the second-strongest level of criticism it can issue. Auditor General Karl Eirik Schjøtt-Pedersen said that the failure of Nav’s case-handling systems to ensure that payments follow relevant laws and rules is a significant weakness in a system that processes large sums, and that it is deserving of criticism.
The audit office summarized several findings. Case handlers lacked written justification in 73 percent of high-risk cases where a system alert about a possible overpayment did not lead to a change in the decision.
Until June this year, Nav’s system used incorrect income bases in 57 percent of payments at initial sickness benefit determination. Nav also carries out few controls in the sickness benefit area after payment, and most sickness benefit cases are processed without a case handler reviewing them.
The audit office recommends that the Ministry of Labour and Inclusion follow up on Nav by correcting the sickness benefit basis if an employer changes its employer’s report after the initial determination. It also recommends using available data, including for analyses and follow-up checks, to ensure that sickness benefits are paid correctly.
Schjøtt-Pedersen also presented the audit office’s Document 1, the annual report to the Storting on the audit of state accounts, on Tuesday. The audit office says there is uncertainty about larger amounts in the annual accounts of Nav, Defence Estates (Forsvarsbygg) and the Tax Administration (Skatteetaten).
Serious weaknesses in internal controls over key IT systems at these agencies create uncertainty about significant amounts in the state accounts, according to Schjøtt-Pedersen in a press release.
The office says it cannot issue an audit report on Nav and Defence Estates, partly because of significant weaknesses in internal controls at Nav and in Defence Estates’ financial system. It also concluded that there are material errors in the annual accounts of several parts of the armed forces.
The accounts of Defence Estates could not be audited at all.
Defence Minister Tore O. Sandvik (Labour Party) said it is very serious that one of the agencies cannot be audited.
An external review of financial management at Defence Estates is already underway, covering processes, technology and organization. According to the minister, it is expected to produce a clear situation description, an assessment against best practice in financial management, and a concrete action plan to improve financial management and internal control in the short and long term.
The report covers the state accounts, 233 state annual accounts, individual cases and two extended follow-up cases. It notes that the figures from Nav, Defence Estates and the Tax Administration make up a large share of both state expenditures and revenues.
Nevertheless, the audit office describes the rest of the state’s financial management as good. Schjøtt-Pedersen said that of the 233 state annual accounts audited, 224 are substantially correct.
