- The accuracy and completeness of the respective expenditure amounts couldn’t be confirmed
- The institute’s revenue of Sh39 million is also in doubt as the same was not backed by the respective schedules
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National Cancer Institute of Kenya managers are on the spot after failing to account for expenditure amounting to more than Sh200 million.
A new audit has flagged several instances where the institute’s management disregarded the law in spending public funds.
NCI-Kenya was created by an Act of Parliament in 2012, to among others advise the Health Cabinet Secretary on matters relating to the treatment and care of persons with cancer.
Auditor General Nancy Gathungu, in an adverse opinion on the institute’s spending, said expenses to the tune of Sh161 million were unsupported.
The audit for the period to June 30, 2023, revealed that while the agency reported to have spent Sh161 million, schedules presented for the audit reflected Sh128 million.
An unexplained variance of Sh33 million spent on conferences, advertising, bank charges, printing and stationery, cancer education materials, training, travel accommodation and daily subsistence allowance was flagged.
“In the circumstances, the accuracy and completeness of the respective expenditure amounts couldn’t be confirmed,” the report seen by the Star reads.
“Based on the audit procedures performed, I confirm that internal controls, risk management and governance were not effective,” Gathungu said.
The institute’s revenue is also in doubt, with the auditor saying the same was not backed by schedules.
“The total amount of public contributions and donations and rendering services of Sh39 million could not be confirmed.”
The management also failed to explain Sh24 million which was reported as having been spent on travel, accommodation and allowances.
The expenditure was not supported with payment vouchers and their respective documents.
“The accuracy and completeness of travel, accommodation and daily subsistence allowances amount of Sh24,468,072 could not be confirmed,” Gathungu said.
NCI’s bank balances also could not be confirmed, the audit reveals, casting doubt on the reported Sh16.9 million which was not supported by the cashbook, certificate of bank balance and bank reconciliation statements.
In the absence of the documentation, the review was unable to confirm the accuracy and completeness of the balances reported in the year.
Auditors also established that some staffers were issued imprest before accounting for previous ones.
The multiple imprests amounted to Sh8.9 million.
Public Finance Management regulations require that before an imprest is issued, accounting officers shall ensure that the applicant has no outstanding ones.
Those allocated imprests are also required to account for the cash or surrender unspent ones within seven days after returning to the workstation.
It has also emerged that the institute had excess board members.
There were 10 members instead of seven or nine provided in Chapter 1 of the code of governance – Mwongozo.
The code requires board membership of all state corporations to have between seven and nine members.
“In the circumstances (of excess imprest and un-surrendered imprest), management was in breach of the law,” Gathungu said.
NCI management has further been called out for failing to provide signed minutes of 17 board meetings out of the 26 the agency held in the year under review.
“The minutes were not signed and there is no evidence of confirmation of these minutes,” Gathungu said, citing a violation of Annexure I-E (8) (e) of Mwongozo which provides that minutes must be drawn up for every board and committee meeting with resolutions highlighted therein.
Ideally, the minutes should be circulated to all board members as soon as possible after the meeting.
Upon confirmation, the minutes should be signed by the chairperson and added to the records of the organisation.
“In the circumstances, the overall governance of the Institute could not be confirmed,” the auditor general said.
The audit procedures performed confirmed that public resources were not applied lawfully and in an effective way.
“I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my conclusion,” the auditor general said.
The management also failed to settle pending bills of Sh22 million within the year, which was attributed to unpaid supplies and unpaid audit fees.
Instances of over-collection of receipts and over-expenditure were also noted, with the auditor concluding it may imply weaknesses in formulating the budget.