A case in point is where the Committee noted the human resource department was notcommunicated to about the error in the budget which affected the salaries of temporary staffs.This fact was communicated to the department only when it had engaged the temporary staff foranother three months.
5.0 Signatory to the accounts
The committee noted that one of the senior managers in the Commission is a signatory of the
Commission’s bank accounts. The mana
ger in question runs one of the core departments of the
Commission which accounts for huge portion of the Commission’s budget. The departmental
head not only approves the requisitions of his department but also is a member of the tendercommittee. The comm
ittee noted that this is a weakness in the Commission’s internal control
system and could lead to cases of conflict of interest. They observed that this vulnerability on the
side of Commission’s controls once exploited then the Commission stands to lose a
lot of funds.The committee noted there is need to identify another signatory to the account especially fromthe departments which are not big spender and is not in the tender committee. This will ensurethat more control and scrutiny is enhanced before a cheque is signed.
6.0 Over expenditure in international travel and accommodation.
The Committee noted with concern that the vote had been over expend by a total of Kshs1,385,019.00. This translated to 186% over and above the allocated amounts. The marketing
manager’s justification that the CEO travel expenditures was not meant to be charged to the
international travel and accommodation vote but to the research and advocacy vote could not besubstantiated as he did not produce any evidence such as a copy of extract of the board minutesauthorizing the use of the research and advocacy funds.
It was further noted that the explanation given by the Marketing manager that the CEO’s travel
was not planned for from the beginning could also not be substantiated. This was after anexamination of memo Ref. No. KFC/5/MEMOS/11 dated 24
October, 2011 from hisdepartment had included the CEO among the delegation that was scheduled to travel. Thereforethe assertions by the marketing manager that he came to know about the
CEO’s travel on the day
he was due to board the plane to the USA for the event were not factual.
The Committee noted that this was a case where the management overrode the Commission’s
internal controls. The committee proposes that the management should religiously stick to thefunds allocated to avoid the cases of over expenditure as was the case above.
7.0 Unsupported expenditures- American Film Market
The Committee discussed the internal auditor’s findings as well as sought the clarification from
the imprest holder. The following were the findings of the Committee.
a) Kenya film reception expenditure.