The report also revealed that there is non-compliance with Law on Ethnic Composition. A review of personnel records and staff establishment for the year ended 30th June 2020 revealed that MTRH had 14 senior management employees out of which eleven 11 or 79% came from the Kalenjin community
A report by the Auditor General for the financial year ending 30th June 2020 reveals that Moi Teaching and Referral Hospital is owed over Ksh.1,302,549,618 which may never be recovered. According to the report, the amount includes individual clients’ debtors’ balances of Ksh.142,411,851.
A review of the individual clients’ debtors’ ledger revealed that the hospital extended credit services during the financial year 2019/2020 to individual clients totalling Ksh. 2,452,560 against commitment letters as securities contrary to the credit policy manual of 2016 and board resolution.
Consequently, the accuracy, completeness and recovery of the net debtors of Ksh.1,320,549,618 as of 30th June 2020 could not be confirmed. The institution also offered irregular Salary advances to Interns and as of 30th June 2020, Ksh. 930,000 was advanced to interns in the financial year 2019/2020 and the prior year.
A review of the documents provided revealed that the interns who were paid salary advances had been contracted by the hospital for less than 12 months. This contradicts the human resource policy, further, out of the total amount advanced, Ksh. 890,000 had been outstanding for more than 12 months. The Management did not provide evidence of the efforts made to recover the amount advanced as required by the policy.
Therefore, the hospital might not recover the amount of Ksh.930,000 advanced to interns. Consequently, the completeness, regularity and recoverability of the salary advance of Ksh. 4,205,989 included in the net debtors of Ksh. 1,320,549,618 could not be confirmed.
The report also revealed that there is non-compliance with Law on Ethnic Composition. A review of personnel records and staff establishment for the year ended 30th June 2020 revealed that MTRH had 14 senior management employees out of which eleven 11 or 79% came from the Kalenjin community.
Out of 3,726 employees in other cadres, 2,589 or 69% came from the Kalenjin community. Further, the Hospital recruited 113 new employees during the year under audit, of which 72 or 64% came from the same ethnic community in the county.
The Management failed to comply with the provisions of Section 7(1) and (2) of the National Cohesion and Integration Act 2008, Article 232 (1)(h) of the Constitution of Kenya and Part 2.14.9 of Moi Teaching and Referral Hospital Human Resource Policy and Procedures Manual 2018.