Hospital Attorney Says Former CEO’s Fraud Proof Flight Passes Bought Incorrectly – Halifax | The Canadian News

The use of flight passes by the executive director of a hospital for personal travel was questioned early in her tenure, the IWK Health Center’s attorney general testified Tuesday during the former executive’s fraud trial.

Jennifer Feron testified in the Halifax provincial court trial of Tracy Kitch, who has been charged with breach of trust and fraud of more than $ 5,000 in connection with her claims for children’s hospital expenses between 2014 and 2017.

Feron said that in May 2015 he observed Kitch’s executive assistant dealing with flights Kitch had taken in February for personal reasons, but had not yet reimbursed.

He said he observed a similar situation in June of that year for a personal flight Kitch had taken in April, even though Feron said he had by then informed a senior finance department executive of his concerns.

“You can’t have personal expenses that are three months old,” Feron said.

“I told her (Kitch’s executive assistant) ‘You have to follow some kind of policy, not just improvise,'” she testified.

She added that it was not her role as the hospital’s legal counsel to oversee the expense statements, but felt she should voice her concerns to the executive assistant about the use of the flight passes after observing the practice.

Flight passes are prepaid flight packages that are valid within a specific region and for a specified period of time.

Kitch had started working at the children’s hospital in August 2014 after moving to Nova Scotia from her home in Oakville, Ontario.

In 2017, an internal report ordered by the hospital found that $ 47,000 in expenses had been charged to the hospital that auditors deemed “potentially personal.” All money was repaid when Kitch resigned that summer.

The Crown said in its opening statement Monday that it will focus on 68 Kitch transactions between 2014 and 2017, including flights between Toronto and Halifax.

However, defense attorney Jacqueline King has said in court that while Kitch used her corporate credit card for personal expenses, she marked them for future reimbursement. The lawyer has also stated in court that “all of Ms. Kitch’s expense reports were signed by the chairmen of the board (IWK).”

During testimony Tuesday, Steve Ashton, vice president of organizational and people development at IWK Health Center, testified that he did not recall board chairs coming to him to question Kitch’s expenses.

King had asked during questioning whether he had heard former President Phil Otto or his successor Bob Hanf say, “’What the hell is going on? I am not approving these expenditures. ‘ “

Ashton replied that none of the board chairs had come to him directly and asked about Kitch’s expenses.

In 2018, Provincial Auditor General Michael Pickup said he was surprised by the lack of basic financial management oversight and controls at the hospital. Pickup concluded that the IWK board of directors failed to create a culture that promoted accountability.

Former IWK CFO Stephen D’Arcy faces charges of breach of trust, unauthorized use of a computer and damage to data in a separate lawsuit next year.

This Canadian Press report was first published on November 9, 2021.