Audit finds Medicare Locals misspent funds

Deloitte examined six of Australia's 61 Medicare Locals and found scores of potential breaches of the deed with the government that regulates what their funding can be spent on. 

Parking and speeding fines, entertainment and functions, employee farewells and gifts, company director courses and office amenities had been paid for out of federal funding, according to the report. 

The auditor heard that in many cases internal policies to guide appropriate spending, including on employee functions and amenities, did not exist, while one Medicare Local admitted the prohibited transactions should not have occurred. 

One of the Medicare Locals had racked up administration fees close to 40% of its core funding, while another appeared on paper to have spent none, instead outsourcing operational management to a sub-contractor. "No further details could be obtained," the report, dated February 2014, said. 

Another allowed the board