SCDHB

South Canterbury DHB has chosen to join other district health boards in the public release of chief executive credit card spending.

Both the DHB board and management believe in public accountability and openness, says Chief Executive Chris Fleming.

"We support recent moves towards regular reporting of public sector credit card spending, and will continue to make this information available to the public or media on request.

"As chief executive I take my responsibility for wise and responsible spending very seriously. I am confident that the use of my credit card is within the rules."

All Mr Fleming's credit card spending is work-related and supports DHB business.

"I spend a lot of time meeting with others to share information, coordinate and lead regional and national priorities, and make decisions," Mr Fleming says.

"I am well aware of the tight financial environment in which DHBs operate and the need to keep a tight rein on spending. South Canterbury DHB, like others, has a number of internal checks in place to guide credit card use and reimbursement of expense claims, and we closely monitor how these are used. All expenditure has been approved by the chairman of the Board, and Audit New Zealand routinely reviews these expenses as a part of the year-end audit process."

The national data shows that chief executives at different DHBs use their credit cards in different ways.  Some clearly use taxi chits, book accommodation to be charged back, or pay work-related subscription and conference fees by invoice.  None of these appear in the data released by some DHBs and therefore their real expenditure may be understated.

Analysis of the information needs to take these factors into account, according to Mr Fleming.

The national release of credit card information, which takes place across the country today, is pulled from the past two years of credit card statements.  South Canterbury DHB has chosen to release this information voluntarily and not as the result of an Official Information Act request.

Questions and Answers related to South Canterbury DHB

How much was spent on the chief executive's credit card in the past two years?

A total of $39,726 was spent over the past two years on the SCHDB chief executive's credit card. Not all this spending was for the benefit of the chief executive alone. Our policy says that when multiple staff attend the same work-related event, the credit card of the most senior person is used to pay for it. Therefore the chief executive's credit card is often used to pay for costs incurred by several staff, rather than one person.  This ensures final approval is at the highest possible level (i.e. the chief executive's credit card is approved by the chairman of the DHB board).

What was the money mostly spent on?

Taxis - these are numerous, mostly in Wellington Meals - mostly related to overnight meetings out of town Accommodation Travel and travel chargesProfessional development coursesMembership fees - New Zealand Institute of Chartered Accountants and New Zealand Institute of Directors Car parking and car storage

Why does Mr Fleming use his credit card to pay for taxis, accommodation and other costs that are not included on the credit card statements of other chief executives?

Using the credit card reduces the cost of processing the transactions, and this saves money for the DHB. Taxi companies add a margin for all transactions using a taxi chit.  It is also more expensive and time-consuming to use a direct charge-back arrangement to pay for accommodation than it is to use a credit card.

Why does the chief executive need to travel away so often?

Being chief executive of South Canterbury DHB often requires Mr Fleming to represent South Canterbury in national forums, and sometimes this means using overnight accommodation. He is also:

the chair of the South Island Health Services Planning Group and South Island Shared Services Agencythe lead DHB chief executive on aged care services in New Zealandthe chair of the national Safe Medication Management Programmeformerly a member of the Public Sector Pay and Equity Committee.

All of these commitments require some travel within New Zealand.

For more information contact Arlene Goss, communications manager, South Canterbury DHB, phone 03 684 1395, email agoss@timhosp.co.nz.