Kenya Utalii College awarded staff based on period of service rather than performance, a report of Auditor General Nancy Gathungu shows.
Gathungu said a review of the ledger and vouchers revealed that Sh4,000,000 was paid as long service awards to all staff who have been in service for periods ranging from 10 to 35 years.
“However, as per the College’s Human Resource Policy, 2018, the rewarding of staff is based on excellent performance in the form of bonus cash, a roll of honour or letter of commendation,” she said.
Further, Gathungu noted that the Public Service Performance Reward and Sanctions Frame Work long service is a reward issued to members of support staff upon completion of 25 years of exemplary service.
“However, the college awarded all staff in monetary terms based on period of service rather than performance,” she said in her report for the period ended June 30, 2022.
Gathungu said the management was in breach of its Human Resource Policy, 2018 and the Public Service Performance Reward and Sanction Frame Work and value for money in the scheme could not be determined.
The Auditor General further noted that the college incurred an expenditure of Sh3,678,625 on acting allowances on staff with some having acted for more than five years.
“In the circumstances, management was in breach of the human resource manual,” she added.
She noted that the college had current liabilities of Sh5,611,170,057 against current assets of Sh1,252,912,547 thus resulting in a negative working capital of Sh4,358,257,510.
“The college is therefore technically insolvent and may not be able to meet its short-term obligations as and when they arise.”
Gathungu also highlighted underfunding and underexpenditure, which she said affected the planned activities of the college and may have impacted negatively on service delivery to the public.