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Audit follow‑up finds $58,000 overbilling on workers' compensation; city recovered about $28,000
Summary
A follow‑up workers' compensation audit found $58,000 in overbilling by the third‑party administrator; in April 2025 the city recovered more than half (~$28,000) and continues reviewing the remainder while noting gaps in incident reporting and a vacant safety coordinator position.
The Springfield City auditor reported follow‑up findings on the city's workers' compensation program, saying the city spends about $1.8 million annually on workers' compensation administered by a third‑party administrator (identified in the meeting as Future Comp).
Auditor No told the audit subcommittee that the original May 2024 audit identified multiple weaknesses: contract overbilling by the TPA to the tune of $58,000, inconsistent claims reporting, insufficient monitoring, and opportunities to reduce workplace injuries. In April 2025 the city recovered more than half of the overbilled amount — about $28,000 — and the remaining balance remains under review by management and the vendor.
The follow‑up also found billing transparency has improved because invoices now break out charges to match contract rates, which makes vouching easier. The auditor said the TPA has begun issuing formal loss‑control recommendations and the city is implementing several changes.
However, gaps remain in supervisory incident reports: many required supervisor reports were not on file in the initial audit, and the position assigned to ensure those forms and targeted training (the safety coordinator) is currently vacant. Auditor No said the city is recruiting to refill that role and recommended the new coordinator provide targeted training for the school department and public works, which together account for over 70% of the city’s workers' compensation claims.
Councilors asked for additional procedural details (for example, how long an employee may remain on workers' compensation before replacement), which Auditor No said he would follow up on. The audit subcommittee did not adopt additional immediate actions during the meeting; the auditor said the office will continue to track recovery and remediation with management and the vendor.
The audit report and follow‑up will be included in the audit office's published materials once finalized and presented to the audit committee.
