The former CEO of Atlantic Canada’s biggest children’s hospital still owes more than $22,000 for “potentially personal” expenses charged to her corporate credit card before she resigned last week, an independent review has found.
The review of Tracy Kitch’s expenses was ordered by the IWK Health Centre’s board of directors because of discrepancies. Kitch resigned Aug. 23 for what the chairwoman of the hospital’s board described as personal reasons.
The review by Grant Thornton covers expenses reported between August 2014 – when she started at the IWK after a stint as an executive vice-president at Toronto’s Mount Sinai Hospital – and June 2017.
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The accounting firm said its review of corporate credit card transactions, expense claims and other costs identified $47,273.32 of potentially personal expenses, of which $25,009.28 has been reimbursed.
“In many instances, the support for these expenses was not sufficient for us to determine the business reason, or appropriate approval may not have been documented,” the report said.
It said there were “significant delays” in the submission of claims, which limited the hospital’s ability to identify potential issues.
The report found Kitch had been allotted 10 days annually for professional development but exceeded that by 14 days in 2015 and seven days in 2016.
It found the IWK paid for membership fees beyond those contractually agreed to, including the Air Canada Maple Leaf Club Lounge and membership in the College of Registered Nurses of Ontario.
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The report found she performed a review of the Montreal Children’s Hospital, and was compensated with an honorarium and expense reimbursement. But travel expenses were charged to the IWK and not reimbursed upon receipt of payment.
Among items seen as potentially personal, the report detailed $26,463.80 for flight pass usage; $4,636.55 for mobile data overages; $4,474.34 for taxis; $1,580.31 for hotel-related costs; $394.75 for meals; and $161.40 in iTunes charges.
“Hotel costs include a hotel stay by a family member of the CEO during a visit to Halifax, as well as hotel charges related to a personal trip to the U.S. that were charged to the corporate credit card,” the report found.
In a statement Thursday, the IWK said its board has endorsed all of the report’s findings and approved its 14 recommendations.
“Members of the board take very seriously the trust placed in them as they oversee the Health Centre and ensure patients and families continue to receive the world-class care they expect from the IWK,” it said.
The Grant Thornton review included 31 Visa statements, with a total of 560 individual transactions, seven expense claims, one cash advance, and direct billed expenses.
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It found the hospital board’s chair only reviews CEO credit card transactions and expense claims, and not travel and hospitality expenses that may be billed directly to “the CEO cost centre.”
“As well, credit card expense reports provided to the board chair during the period of review were not supported with credit card statements and detailed receipts, reducing the ability of the chair to determine the appropriateness and completeness of the transactions reported.”
Kitch was earning an annual salary of $296,289 at the time of her departure.
Dr. Krista Jangaard, vice-president of medicine and academic affairs, has been named interim CEO.
The Izaak Walton Killam Health Centre, known locally as the IWK, provides care for women, children, youth and families from the Maritimes and beyond.
The charitable organization has more than 3,600 employees and an annual operating budget of about $289 million, with the province covering roughly 80 per cent of costs.