University of Wisconsin System officials told state lawmakers Wednesday that they are working on the recommendations brought forth in a Legislative Audit Bureau report last month.

Among the audit's findings, UW employees have not called in sick and have proceeded to convert sick days into hundreds of thousands of dollars in health insurance following retirement.

UW teaching faculty used, on average, less than one sick day in 2005, which translated to more than $222,000 in additional post-retirement insurance funding. Overall, the UW System, along with its top administrators, converted $535,000 of sick leave into insurance at retirement last year.

UW System President Kevin Reilly, however, defended UW employees when he spoke to members of the Joint Committee on Audit.

"I believe, as I'm sure you do, that there are faculty and staff who are ethical and honest and dedicated and productive," Reilly said at the Capitol Wednesday. "These are qualities I think they should all celebrate and report in our faculty and staff."

Members of the Legislature, however, were not overly critical of the UW System, as earlier this week contentious sick pay usage information critiquing their own habits was released.

Legislators are able to convert sick days into health insurance benefits when they turn 55, and it was uncovered that most lawmakers do not take sick days when they miss legislative votes.

But Wednesday, both Republicans and Democrats thanked Reilly and UW Board of Regents President David Walsh for their efforts.

"This is how it's supposed to work," Rep. Dean Kaufert, R-Neenah, said. "We've identified some problems, we've identified some changes that need to be made, and I just want to commend the university. I think we're moving in the right direction."

Walsh reported that the Board of Regents has taken a number of steps in improving personnel policies, including requiring the president's approval on all settlement agreements, as well as changes to job status and salary limitations when academic staff return from sabbatical leave.

"All of these were steps to review and fix that which we found to be broken," Walsh said. "And that's very important because … we won't get the kind of reinvestment we need to initiate the Growth Agenda unless we have that credibility."

The Growth Agenda for Wisconsin, introduced by the regents earlier this year, aims to improve access and affordability in an effort to help the university grow. Walsh said he hopes the board can shift their focus to the Growth Agenda after the issues in the audit are resolved.

"As for the comments and recommendations of the LAB, we will address and we will move forward on them," Walsh said. "And then hopefully we can all start moving forward on the Growth Agenda and do what we think is best for the state of Wisconsin and the university system."

Walsh also cited the board's yearlong efforts to review its disciplinary process. Following criticism for allowing three convicted felons to remain on the UW payroll, Walsh formed a special committee to review the university's faculty disciplinary policy.

For the past year, the committee has discussed revisions that would expedite the disciplinary and dismissal process of felonious faculty members. The committee is expected to present their recommendations to the full board next week.

Also Wednesday, Sen. Mike Ellis, R-Neenah, and Rep. Sheldon Wasserman, D-Milwaukee, introduced a bill that would prohibit state legislators from carrying over their sick days from year to year, preventing them from collecting thousands of dollars worth of benefits.

Sen. Ted Kanavas, R-Brookfield, meanwhile, issued a statement saying he will work to fix the "loophole" that allows lawmakers to receive such benefits. Senate Majority Leader Judy Robson, D-Beloit, told The Badger Herald Tuesday that she's not ready to take a stance on the issue until she sees a full review from the Legislative Reference Bureau.