senator hotle presentation
TRANSCRIPT
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WESTERN REGIONHALF YEAR INTERNAL REPORT
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TARKWA MUNICIPAL HOSPITAL
DETAILS FINDING
Failed to withhold taxes-GH 385.39
Criteria
Section 82 (2) (a, b) of the Internal Revenue Service Act 2000 (Act 592), required that
(a) for the supply or use of goods or property of any kind, or
(b) For the supply of any services,in respect of a contract betweenthe payee and aresident person other than an individual exceeding fifty currencyPoints, the personmaking the payment shall withhold tax on the gross amount ofthe payment at the rateprescribed in Part IV of the First Schedule
Condition
On the contrary, our audit revealed that the Head of Finance effected payment to the
tune of GHC 3,734.1 without deducting statutory withholding tax of 5% as stated below
DATE PV. NO. PAYEE AMOUNT GHC TAX GHC 5%
17/06/11 0674393 ENVIRONMENTAL OFFICER 600.00 30.0
9/06/11 0674367 WELL MAINT 800.00 40.00
26/06/11 0674300 SINKSAD SERVICES 606.1 30.31
22/06/11 0674422 A.A. SADIQ (HOF) 1,728.00 285.29 PAYE
3,734.1 385.39
Cause
The hiccup could be attributed to non adherence to prescribed procurement process, hence
resulting in a cash purchases or cash refund. Again, reckless and arbitrary
spending without regard to tax laws could result in this practice.
Effects
It could attract sanction from the Commissioner of the Internal Revenue Service andalso adverse audit observations.
Recommendation
We recommend that Head of Finance should contact the Suppliers to refund the money
or risk surcharged.
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Unauthorized payment from Internal Generated Fund (IGF) GH 3,500
Criteria
The Director Generals circular dated 30th
March, 2011, NO. GHS/DGS/G.2 mentioned
the approved and authorized allowances and incentive package for Doctor and otherStaff of Ghana Health Service facilities from Internal Generated Funds (IGFs). Among
them include;
Fuel allowances (to those qualified for fuel as per their appointment,
Allowances in leau of transport as per appointment,
Car maintenance allowances (for officers not using official vehicles),
Tender committee,
Audit Report Implementation Committee,
Budget Committee,
Condition
We observed during the audit that Management of the BMC had paid unapproved
allowance termed Responsibility allowance or management allowances to core
management members, which contravened the Director General directives.
DATE PV.NO CHEQUE NO. PAYEE AMOUNT
23/5/11 0674283 736 MEDICAL SUPT 3,500.00
Causes
The condition above could be ascribed to non adherence to the Director General
Directives.
Effect
It could attract sanction from theDirector General. And also it is a misapplication of
funds.
Recommendation
The beneficiary should be made to refund the various sum received.
Management Comment
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Procurement not routed through the BMC stores -GHC 3,881.90
Criteria
Section 0522 of Stores Regulations 1984, stated that a Store Receipt Voucher shall be
prepared for the recording of all goods received into store. However, the Head ofDepartment shall maintain Stores ledger and tally cards for all items in the stores.
Section 30(1) of Financial Administrative Act, 2003, requires each department to
maintain adequate records of stores.
Condition
However, our audit revealed that, procurement made worth GHC 3,881.90 was not
routed through Hospital Store. Implying that the BMC procures without taking charged
the items through stores and ledger entries to safe guide it from wastage and diverting
it from intended purposes. The details as stated below:
DATE PV. NO. PAYEE ITEMS AMOUNT
GHC
16/02/11 0674244 CECILIA AWUAH 10ROLLS OF WHITE
MATERIA
679.80
09/05/11 0674249 DE.DOT ENT UPS(800 VA) 200.00
1/6/11 0674373 CEECHART ENT BED,CHAIRS 1,400.00
26/6/11 0674300 ENVIRONMENTALOFF. FERTILIZER,CULTLAS 606.1
17/6/11 0674393 ENVIRONMENTALOFF. MOWER BLADE 600.00
24/6/11 0674292 ABIOLA BROTHERS JERSEY,HORSE 396.0
3,881.90
Cause
The glitch could be ascribed to supplies not being delivered to stores unit as require by
law. Laxity on the part of Supply Officer to take charged of the items not procured by
him.
Effects
It could result in huge financial lost to the BMC, since items procured are not taken
charged and issue to user unit when required.
Recommendation
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Management should Endeavour to play by the rules, by ensuring that all future
procurements are routed through stores. Meanwhile items not being taken charge by
the Stores keeper should be rectified immediately.
Management Comment
Unacquainted payment- GHC 5,550.10
Criteria
Section 28 (1) of Financial Administration Regulation, 2004 requires that A collectorwho is satisfied that money tendered is in order, shall issue an original receipt to the
payer, and shall deal with the duplicate and triplicate copies as required by law.
Condition
However, the Finance Department failed to uphold to this provision when they effected
payment to the sum of GHC 5,550.1 to various enterprises without obtaining official
receipts as stated below.
DATE PV.NO PAYEE ITEMS PURCHASE AMOUNT GH
7/6/11 0674355 GEOFOR GHANA REPAIRS WORK 1,845.0
01/6/11 0674373 CEECHART BED,CHAIRS 1,294.0
26/6/11 0674300 SINKSAD ENT SPRAYING ENVIR. 606.1
9/6/11 0674367 GEOFOR REPAIRS WORK 800.0
10/5/11 0674230 HEADOF ADMI. REFRESHMENT 105.0
18/4/11 0674147 HEADOF PHA COLOUR METHOL 300.0
Cause
The existence of the above condition could be ascribed to negligent on the part of Head
of Finance to enforce and uphold to the provisions in Financial Regulation.
Effect
The practice is unacceptable and could attract sanction for fall foul of law. Also it could
attract advert audit report for poor financial management.
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Recommendation
We suggest that Head of Finance should always ensure receipts are obtained for every
payment made.
Management Comment
No budget committee in place
Criteria
Financial Administration Regulation, 2004 Part V Section 150 requires every head of
department to establish a budget committee which shall be made up of
(a) The head of department
(b)Heads of Budget Management Centres responsible for budget formulation,
implementation, monitoring and evaluation.
Condition
On contrary, our audit revealed that the BMC had being operating without this
important committee in place to ensure:
(a) Review and formulate the strategic plans based on the policies of government
(b)Review departments revenue collecting activities;
(c) Allocate resources based on objectives, output and activities
(d)Coordinate and consolidate the budget
(e)Monitor, and evaluate budget performance; and
(f) Report in accordance with these regulations.
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Cause
The lapses could be blame on inadequate education about importance of the
committee.
Effects
In the absent of Budget Committee, scares resources could not be used for the intended
purposes.
Recommendation
Management should setup a functional budget committee as prescribed by Financial
Administration Act and empower it to function adequately.
Management Comment
Management agreed to make appointments in to the committee.
PRESTEA GOVERNMENT HOSPITAL
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DETAILS FINDING
Payments worth GHC 4,022.63 could not be accounted for
CRITIRIA
Financial Administration ACT 654,2003 requires that payments for work done, goods supplied
or services rendered should be acknowledge with official receipt from the Contractor or
Supplier with the company name and logo on it stating amount received, date and many more.
CONDITION
On contrary, our audit revealed that payment made to Contractors and Suppliers worth fifteen
seven hundred and two cedi sixty three pesewa (GHC 15,702.63) in different payments
vouchers were not supported with official receipt from the Contractors and Suppliers. As stated
below;
DATE PV. NO. PAYEE ITEMS PROCURED AMOUNT GHC
2/3/11 0487693 DIGITAL RESEARCH
SYS
NON DRUGS 5,415.00
3/3/11 0487908 KELMED VENTURE CLEANING MAT 2,565.00
10/5/11 0487966 GREAT WALL REPAIRS OF CAR 839.32
31/5/11 0487990 KELMED VEN. ABDO
MINAL TO
WEL 2,090.0031/5/11 0487986 DOO ZO RENOVATION 1,900
31/5/11 0487984 AKAPI ACCOMODATION 993.31
31/5/11 0487978 DOWELL ENT WASHING MACH. 1,900
15,702.63
CAUSE
The above condition could be ascribed to poor supervision on the part of Head of Finance.
EFFECTS
It could attract sanctions for non compliances with Financial Administration Act.
RECOMMENDATION
Management should ensure that Contractors and Suppliers issue receipt before their cheques
are handed to them, to avoid recurrent of the condition.
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MANAGEMENT COMMENT
Abuse of Drugs fund by management amounts to GHC 14,414.00
CRITIRIA
Section 77 (2) A Special Fund shall be established by an enactment or other legal instrument
approved by the Government, which shall specify the purposes of the fund, the administering
authority, amounts receivable and payable and any special rules necessary for the transaction
of business.
CONDITION
Our review of internal control system revealed that Management had turned Drugs Revolving
Fund into general accounts, where payment of any kind are effected from this account.
DATE PV.NO PAYEE PURPOSES AMOUNT GHC
21/04/11 1441000 MEDICAL SUP T AND T CLAIMS 620.0
07/04/11 1440966 SHELL FILLING
STATION
FUEL DEPOSIT 3,000.00
7/04/11 1440967 MEDICAL SUPT CHOLERA CAMPAIGN 4,000.00
21/04/11 1440999 SAMMY ARTHUR TRANSFER GRANT 554.00
12/05/11 0487970 ALBERTTA SARFO RENT PAYMENT 6,240.0
CAUSES
The existence of the above condition could be ascribed to lack of adequate internal controls.
Also management interests overrun the Financial and Administration Regulation (FAR).
EFFECTS
It could have negative impact on the running of the Hospital since they wont be money to
replenish drugs used. Hence could lead to lost of lives of patients.
RECOMMENDATION
Management should stop the practices; the transportation claims paid out of the accountshould be recompense.
MANAGEMENT COMMENT
Management agreed with the recommendation and assured us of it implementation.
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Unauthorized allowances to Management from Internal Generated Fund (IGF)
CRITIRIA
The Director Generals circular dated 30th
March, 2011, NO. GHS/DGS/G.2 mentioned the
approved and authorized allowances and incentive package for Doctor and other Staff of Ghana
Health Service facilities from Internal Generated Funds (IGFs). Among them include;
Fuel allowances (to those qualified for fuel as per their appointment,
Allowances in leau of transport as per appointment,
Car maintenance allowances (for officers not using official vehicles),
Tender committee,
Audit Report Implementation Committee,
Budget Committee
CONDITION
We observed during the audit that Management of the BMC had paid unapproved allowance
termed Responsibility allowance or management allowances and transportation allowance to
the sum of GHC 3,750.00 to core management members, which contravened the Director
General directives.
CAUSES
The condition above could be accredited to non adherence to Director General Directives.
EFFECT
It could attract sanction from theDirector General.
RECOMMENDATION
The beneficiary should be made to refund the various sum received
MANAGEMENT COMMENT
Management agreed with recommendation.
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Procurement that violateGHC 19,500.00
CRITIRIA
Section 43 (1) of Public Procurement Act 663, 2003 requires that the procurement entity shall
request quotation from as many suppliers or contractors as practicable, but from at least three
different sources. The procurement entity shall evaluate and compare the quotation that has
been accepted in order to ascertain value for money.
CONDITION
We realized during our audit that, Management engaged the services of Suppliers and
Contractors t without any form of Contract award as required by Public Procurement Act. As
stated below;
DATE PV.NO PAYEE ITEMS AMOUNT GHC
2/03/11 0487695 CAPSTONE PRINT COSTING SHEET 20,000 1,400.00
2/3/11 0487694 JOKWAT ENT NHIS FOLDER 2000 4,600.00
3/3/11 0487911 ADVANCE
MEDITECH
DENTAL CHAI PARTS 2,000.00
26/1/11 0487663 CAROWNER DISLODGEMENT 4,000.00
31/5/11 0487990 KELMED VEN ABDOMINAL TOWEL 2,090
31/5/11 0487987 DOWEL ENT WASHING MACH. 1,900
EFFECTS
This undermines transparency in procurement of goods and services as envisaged by the Public
Procurement Authority, and could result in the hospital not obtaining value for money in
respect of the goods and services procured.
CAUSES
The condition above could be ascribed to poor procurement planning. Again the BMC failed to
empower the ProcurementOfficer to function proper.
RECOMMENDATION
The BMC should empower the ProcurementOfficer to function proper rather than rescheduling
him to Stores and Supply Unit.
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MANAGEMENT COMMENT
The Head of Finance failed to deduct and remit an amount of GHC 2,158.04 being 5% of
payment made
CRITIRIA
Section 82 (2) (a, b) of the Internal Revenue Service Act 592, 2000 requires that
(a) For the supply or use of goods or property of any kind, or
(b) For the supply of any services,in respect of a contract betweenthe payee and a residentperson other than an individual exceeding fifty currencyPoints, the person making the paymentshall withhold tax on the gross amount ofthe payment at the rate prescribed in Part IV of theFirst Schedule
CONDITION
On the contrary, the Head of Finance effected payment to the sum of GHC 38,572.25 without
withholding the 5% tax component. As per attached.
DATE PV.NO PAYEE TRANSACTION TAX GHC
5%
AMOUNT
GHC
26/01/11 0487663 CAR OWNER DISLODGEMENT 200.00 4,000.00
19/01/11 0487651 NOWEAPON ELECTRONIC SIREN 15.00 300.00
26/1/11 0487911 ADCANCE MID DENTAL CHAIR PARTS 100.00 2,000.00
26/01/11 0487662 AU
TO
WO
RLD REPAIRSO
F VEHICLE 64.19 1,283.7512/05/11 0487970 ALBER SARFO RENT PAYMENT 8% 499.20 6,240.00
5/4/11 0487956 JOETHUR
&OTHERS
REVONATION 759.73 15,194.50
21/4/111 1440999 SAMMY ARTHUR TRANSFER GRAN(PAYE) 69.92 554.00
7/4/11 1440967 MEDICAL SUPT ALLOWANCES 200.00 4,000.00
5/4/11 0487957 MEDICAL SUPT ALLOWANCES 250.0 5,000.00
2,158.04 38,572.25
CAUSES
Ostensibly, the Head of Finance did not see the need to adhere to the law.
EFFECT
The failure to adhere to the law could attract sanction, since it denial the state of it legitimate
sources of revenue.
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RECOMMENDATION
Management should get in contact with Contractors and Suppliers involved for them to refund
the tax component of the payments received. Or Officers involved are surcharged for causing
financial lost to state.
MANAGEMENT COMMENT
The BMC Main Stores, Drugs stores (Pharmacy stores) and other vantage places do not have
fire extinguishers installed
CRITIRIA
Stores regulations 1984 requires a warehouse or stores department of an institution, to fix in
fire extinguishers on it premises to fight fire in case of emergency.
CONDITION
Our thorough examination revealed that, the BMC do not observed this safety measure, rather
operated without a single fire extinguisher.
CAUSE
The Heads of Stores and Pharmacy said they sent several request to Management for actionand had since not heard from them.
EFFECT
In case of fire outbreak, it could have devastating effect on stores leading to huge loss to the
BMC.
RECOMMENDATION
We urged management to liaise with National Fire Service for expert advice and subsequent
installation of fire extinguisher.
MANAGEMENT COMMENT
Management is working with National Fire Service to get it installed
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No audit report implementation committee in place
CRITIRIA
Section 30(1) of Audit Service Act, 2000(584) enjoins all the MDAs to establish an Audit Report
Implementation Committee which shall be responsible for the implementation of all externaland internal audit recommendations.
CONDITION
The Hospital did not have audit report implementation committee in place to ensure
recommendations in audit report were implemented.
CAUSE
The lapses could be blame on inadequate education about importance of the committee.
EFFECT
In the absent of audit report implementation committee some audit recommendations could
not be implemented.
RECOMMENDATION
Management should put in place audit report implementation committee as contained in the
Director General circular.
Management should be educated the essence of audit report implementation committee.
MANAGEMENT COMMENT
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REGIONAL HEALTH DIRECTORATE
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1. Expired Fire Extinguishers
Criteria
Section 28 (1a&b) of the Ghana National Fire Service Act, 1997 (ACT 537)required premises tohave fire fighting facilities, and on fire protection facilities to be provided by occupiers of premises.
Condition
During our audit it was observed that all the fire extinguishers at the Regional Medical Stores
were expired.
Cause
Management relented in its duty to conduct periodic checks on the expiry dates of the fire
extinguishers
Effect
This condition could cause great loss both lives and the entire stock of items in case of fire
outbreak.
Recommendation
We advised that as a matter of urgency management must arrange with Ghana National Fire
Service to refill all the existing fire extinguishers at the Medical Stores.
Management Comments
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2. Payment For Items Not Supplied - Gh3,750.00
Criteria
Section 16(1) of Financial Administration Act,2003 Act 654, states that payments shall not bemade for work not done, goods not supplied or services not rendered whether under a contractor not.
Condition
Contrary to the above law, an amount of GH3,750.00 was paid for the supply of Foley Catheter
size 16 (5000pcs) which was not supplied as per Stores Received Advice as against the suppliers
invoice attached to the payment voucher.
.Date Pv.No Cheque No Payee Amount
21/12/10 0213154 633358 Sir Joe 3,750.00
Cause
The FinanceDepartment failed to check the actual supplied as against the amount quoted in the
award letter and the purchase order.
Effect
Such lapse could deprive the facility of the needed resources to run effectively.
Recommendation
The accounts department should pay more attention to details when processing payments.
The overpaid amount should be recovered from the supplier.
Management Comments
3. Payment Vouchers Not Pre-Audited.
Criteria
Section H of the Accounting, Treasury and Financial Reporting (ATF) on the internal audit
arrangement requires that the Internal Auditor perform Pre-audit as part of his or her work. This is
to ensure completeness and credibility of payment vouchers.
Condition
A total number of 86 payment vouchers amounting to GH2,791,438.78 for the payment of
medicines supplied did not pass through Internal Audit for pre-auditing.See AppendixD
Cause
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The accounts department ignored the internal control procedures to ensure the reliability of
payment vouchers before payments were affected.
Management also over looked this and signed payment vouchers, cheques and authorized
payments.
Effect
This condition denotes management legalizing illegality which is a recipe for breakdown of
internal control.
Recommendation
Management is advised to abide by the internal controls they themselves have put in place for the
smooth administration of the system, by ensuring that payment vouchers are pre-audited before
payments are made.
Management Comments
4. Overpayment of Supplies - Gh13,218.20
Criteria
Regulation 45 of the Financial Administration Regulation 2004 states If any expenditure is made
in excess of the amounts actually due, the overpayment shall be recovered immediately and paid
into the account from which it was originally paid and the officer concerned shall report the
circumstances immediately to the head of department or the appropriate authority.
Condition
A total sum of GH11,340.00 and GH1,878.20 was paid to Mangel Klicks Ltd and Bikat Ltd
respectively in excess of their contract sums. See Appendix E
Cause
The accountant failed in her duty to ensure the correctness of the sum contract, the items
supplied and the invoices submitted were correct.
Effect
This condition would perpetrate fraud and loss of revenue.
Recommendation
We recommended that the overpayment is recovered by management.
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Assets Register Not Maintained
Criteria
Financial Administration Regulations 2004 (L.1 1802) Regulation 2 requires all heads ofgovernment department to compile and maintain assets register of the department.
Section F.1 of Ministry of Health Accounting Treasury and Financial Reporting (ATF) Rules andInstructions states that, all BMCs are required to maintain an updated Fixed Assets Register.
The Finance Office and Estate/Transport Units are required to keep adequate records of assets
procured
Fixed assets shall be labeled, marked or embossed before allocated for use.
Condition
Notwithstanding this requirement the following were noted;
The RHDs assets register was not updated during the year as additional assets were
acquired.
Assets and properties at the directorates bungalows and residential areas were not
captured in the assets register.
Some fixed assets ware not embossed nor labeled but have been allocated for use.
Cause
Assets acquired were sent directly to the user units ignoring the internal control process
Effect
The regional directorate might not be able to trace its assets in the event of theft.
Recommendation
We recommend that management must ensure that all assets acquired are taken on charge
embossed / engraved before issuance by the estate department to the end user to serve as theft
deterrent.
Management Comments
2.0.1 Audit Report Implementation Committee though formed was not Functioning
Criteria
Section 30 (1) of the Audit Service Act (Act 584) enjoins all head of department to appoint an
Audit Report Implementation Committee (ARIC) to implement Internal and External Audit
recommendations relating o their department.
Condition
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Though the Audit Report Implementation Committee was in place, the secretary could notprovide the audit team with a single copy of their minutes of meetings.
Cause
Management has no interest in ensuring that audit recommendations were enforced and
implemented.
Effect
This could be ascribed to the frequent invitation of BMCs in the region to face theParliamentary Accounts Committee (PAC).
Recommendation
The Head of the BMC must show some interest in the activities of the ARIC byrequesting for minutes of ARIC meetings.
Payment Vouchers Without SupportingD
ocuments - GH53,821.
35
Criteria
Departmental accounting instructions require that all details with references to the commitment of
expenditure are attached to all payment vouchers.
Condition
Notwithstanding this legal and administrative instructions, several payment vouchers amounting
to GH53,821.35 from January toDecember 2010 were paid without supporting documents
attached to them. See Appendix A
Cause
This was due to the failure of the Head of Finance to channel the payment vouchers through the
Internal Audit Unit for pre auditing, to ensure that certified supporting documents were attached
as required by the ATF Rules and Instructions.
Effect
We could therefore not certify the authenticity of those expenditures.
Recommendation
Management is advised to ensure that those supporting documents are attached for our
inspection.
Management Comments
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5. Unrecovered Advance To Regional HealthDirectorate GH190,894.02
Criteria
Regulation 104(C) of the Financial Administration Regulation 2004, states that a head of
department authorized to administer a class of advances shall ensure that advances are duly
recovered in accordance with the regulations or agreements relating to them.
Condition
6. The RMS grated an advance of GH233,880.00 to RHD out of which GH42,985.98 had
been paid with GH190,894.02 still outstanding for 3years 8months now. Apparently this
balance was concealed in the Books giving the indication of a negative balance. See
Appendix F
Cause
This condition was due to the fact that patent recovery terms were not stated before the advance
was granted.
Effect
The funds of the RMS is supposed to be revolving and continues borrowing without recovery
steps to ensure their refund could affect the units liquidity in discharging its mandate.
Recommendation
Management is advised to ensure that the advance granted is recovered.
Management Comments
7. Indebtedness Level of RMS to Suppliers Stood at GH2,786,583.54
8. Criteria
By the issuance of award notification letter, management was legally mandated to settle its
indebtedness to its supplier within 90 days.
Condition
9. Our examination of the financial records revealed that the Regional Medical Stores owed itsSuppliers to the tune of GH2,786,583.54 for both medicines and non medicines (2,032,257.24
for medicines) and (754,326.30 for non medicines) at the time of the audit June 1st
to 24th
2011.See Appendix G
Cause
Management did not comply with its own terms and conditions which states that goods supplied
to the RMS shall be paid for within 90 days.
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Effect
The inability to meet credit terms puts the Regional HealthDirectorates credit worthiness in
doubt.
Recommendation
Management is advised to improve upon its debt redemption to ensure that debts are paid
promptly when they fall due.
Management Comments
10. Debtors Level Stood at Gh3,825,341.32
Criteria
Standard Accounting Instructions requires that effective credit policy is put in place to ensure that
working capital is not tied up in debtors.
Condition
An amount of GH3,825,341.32 is yet to be recovered from the various BMCs for medicine and
non-medicine items supplied.See Appendix H
Cause
This condition was due to Managements failure to enact a firm debtors policy in place and toensure that BMCs to comply with.
Effect
A condition of this nature puts the liquidity position of the facility in jeopardy.
Recommendation
Management is advised to put in place effective debt collection measures to enhance its working
capital requirements.
Management Comments
11. Payments Without Award Letters - GH331,359.00
Criteria
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Section 39 (2c) of FAR 2004 requires that the Head of finance of a department shall control the
disbursement of funds and ensure that transactions are properly authenticated to show amounts
are due and payable.
Condition
We observed that management approved of five (5) payment vouchers amounting to
GH331,359.00 without award letters to the respective suppliers being attached.
See Appendix I
Cause
The breach of the above quoted financial regulation was due to inadequate supervision and
failure of the Head Finance to scrutinize the payment vouchers well to ensure completeness of
the transactions.
Effect
This infraction could result in the perpetration of expenditure fraud.
We could not also confirm the genuineness of the expenditure.
Recommendation
We recommend that The Head of Finance must ensure the completeness of payment vouchers
before payment.
Management Comments
12. Payment Vouchers not Presented for Audit Inspection - GH52,121.10
Criteria
Paragraph 1 of the Financial Administration Regulation 2004 states that any public officer who is
responsible for the conduct of financial business on behalf of the Government of Ghana, the
receipt, custody and disbursement of public and thrustmoneys or for the custody, care and use
of public stores, shall keep proper records of all transactions and shall produce records of the
transaction for inspections when called upon to do so by the Minister, the Auditor-General, the
Controller & Accountant General or any officers authorized by them.
Condition
The head of finance did not present three payment vouchers (3) amounting to GH52,121.10 for
our examination. See Appendix J
Cause
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The departmental payment vouchers in question were not properly filed.
Effect
A condition of such nature places the genuineness and the validity of those expenditures in
doubt.
Recommendation
Management is advised to ensure that the payment vouchers are made available for our
inspection
Management Comments
ENCHI HOSPITAL
No fire extinguisher at stores, canteen/kitchen and mortuary
Criteria
The Ghana National Fire Service(GNFS) ACT 537 of 1997, LI 1724 and Regulation 2003 of fire
precaution(premises), requires that all premises should be mounted with fire fighting equipments
(extinguishers) to safeguard properties in the event of fire outbreaks.
Condition
Even though the hospital had acquired some fire extinguishers at some vantage points of theHospital, but failed to provide some at the pharmacy stores, General stores, the canteen and themortuary which needed them most.
Causes
Management attributed the situation to oversight.
Effect
In the event of fire outbreak the hospital would lose a lot of property and funds since much fundshave been invested in the medicines, non drug consumables and other assets.
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Recommendation
We recommend that management should as a matter of urgency contact the district fire serviceto prescribe/ recommend some for them to procure and fixed at the recommended places.
Poor Management of Fixed Assets
Criteria
Financial Administration Regulations 2004 (L.1 1802) Regulation 2 requires all heads of
government department to compile and maintain assets register of the department.
Again, section F.1 of Ministry of Health Accounting Treasury and Financial Reporting (ATF) Rules
and Instructions states that, all BMCs are required to maintain an updated Fixed Assets Register.
The Finance Office and Estate/Transport Units are required to keep adequate records of assets
procured.
All fixed assets shall be labeled, marked or embossed before allocated for use.
Also, every office within the BMC should keep for inspection at anytime a register of Fixed Assets
in that office but the overall BMC Assets Register should be kept by the Estate Unit.
Condition
Notwithstanding this requirement the following were noted;
(i) The hospitals assets register was not updated during the year as additional assets were
acquired.
(ii) Also some fixed assets ware not embossed nor labeled but have been allocated for use.
(List of asset acquired during the year which was not embossed are attached as
appendix).
Causes
It appears the estate officers have not been sufficiently trained on fixed asset management hencethe lapses.
Effect
The hospital might not be able to trace its assets in event of theft if proper records are notmaintained. Assets not indentified marked or labeled are susceptible to theft.
Recommendation
We recommend to management to liaise with the Regional HealthDirectorate to post a train
estate officer who will ensure that fixed assets are properly labeled, marked embossed for theft
deterrent.
Management comments
Management has already submitted a request to the Regional HealthDirectorate to post some staffs that
are not available in the Hospital
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8/3/2019 Senator Hotle Presentation
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Unearned salary
Criteria
Financial Administration Regulation, 2004, Section 298 (1) States that A head of department
shall cause the immediate stoppage of payment of salary to a public servant when that public
servant has:
e) Retired
f) Died
Condition
A review of the mechanized pay voucher of Enchi Government Hospital revealed that madamDorcas Quarshie who went on compulsory retirement on May 23, 2010 continueto receive her monthly salary amounting GH5,763.68 for the period June 2010 to June 2011 .
Name of staff Staff ID No. Reason for
separation
Period of
separation
Amount of
unearnedsalary GH
Dorcas Quarshie 602958 Retirement May 2010 - date 5,763.68
Causes
Even though inputs were prepared and send to Controller and Accountant GeneralsDepartment,they failed to delete her name from the mechanized payment voucher hence this anomaly.
Effect
This could lead to loss of government funds.
Recommendation
We recommend that management should liaise with the bank involved to transfer back theamount into the consolidated fund.
Management comments