Kisumu MCAs fault hospital on financial management
The management of Jaramogi Oginga Odinga Teaching and Referral Hospital (JOOTRH) in Kisumu is on the spot over alleged financial misappropriation.
Kisumu County Assembly Health, Housing and Sanitation committee has recommended that an internal audit be carried out on the hospital’s books of accounts and that the report be submitted to the County Assembly within one month.
In a report adopted by the assembly on Wednesday, the committee established that there were discrepancies in the hospital’s annual report and financial statements for the year ended June 30.
The team which was mandated to investigate the hospital’s annual report and financial statements tabled before the House recently found out that it acted against the Public Finance Management (PFM) Act, 2012 and the PFM (County Governments) Regulations, 2015 by not providing absolute disclosure of finances.
Similarly, it held that the financial report did not meet the standards of International Public Sector Accounting Standards, whose objective is to enhance the quality and transparency of public sector financial reporting.
One vote head
For instance, the committee revealed that the report did not expressly declare the monies received from each donor separately and instead, it lumped them under one vote head.
Further, the committee chaired by North West Kisumu MCA Vincent Jagongo, found out the report fell short of the accounting policies, indicating that the accounting officer did not fully comply with the Generally Accepted Accounting Principles.
“Cognizant of this, it is right to conclude that the report is not fully compliant as it has not portrayed full transparency,” the report.
The team also observed that the administration did not furnish it with relevant information, to authenticate the financial expenditure in contravention of provisions of Article 185 of the Constitution.
“For this reason, the Committee was not satisfied with the report and financial statements submitted to this House and is inclined to believe that the refusal to provide relevant required details was in bad faith,” reads the report.