Senator Hotle Presentation

8/3/2019 Senator Hotle Presentation

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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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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

Documents

Senator Hotle Presentation