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WESTERN REGIONHALF YEAR INTERNAL REPORT

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 between the payee and a resident person other than an individual exceeding fifty currency Points, the person making the payment shall withhold tax on the gross amount of the payment at the rate prescribed 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 17/06/11 9/06/11 26/06/11 22/06/11 PV. NO. 0674393 0674367 0674300 0674422 PAYEE ENVIRONMENTAL OFFICER WELL MAINT SINKSAD SERVICES A.A. SADIQ (HOF) AMOUNT GHC 600.00 800.00 606.1 1,728.00 3,734.1 TAX GHC 5% 30.0 40.00 30.31 285.29 PAYE 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 and also adverse audit observations. Recommendation We recommend that Head of Finance should contact the Suppliers to refund the money or risk surcharged.

Unauthorized payment from Internal Generated Fund (IGF) GH 3,500 Criteria The Director General s 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 to core management members, which contravened the Director General directives. DATE 23/5/11 PV.NO 0674283 CHEQUE NO. 736 PAYEE MEDICAL SUPT AMOUNT 3,500.00

Causes The condition above could be ascribed to non adherence to the Director General Directives. Effect It could attract sanction from the Director General. And also it is a misapplication of funds. Recommendation The beneficiary should be made to refund the various sum received. Management Comment

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 of Department 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 CECILIA AWUAH DE.DOT ENT CEECHART ENT ENVIRONMENTAL OFF. ENVIRONMENTAL OFF. ABIOLA BROTHERS ITEMS 10ROLLS OF WHITE MATERIA UPS(800 VA) BED,CHAIRS FERTILIZER,CULTLAS MOWER BLADE JERSEY,HORSE AMOUNT GHC 679.80 200.00 1,400.00 606.1 600.00 396.0 3,881.90

16/02/11 0674244 09/05/11 1/6/11 26/6/11 17/6/11 24/6/11 0674249 0674373 0674300 0674393 0674292

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

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 collector who 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 7/6/11 01/6/11 26/6/11 9/6/11 10/5/11 18/4/11 PV.NO 0674355 0674373 0674300 0674367 0674230 0674147 PAYEE GEOFOR GHANA CEECHART SINKSAD ENT GEOFOR HEAD OF ADMI. HEAD OF PHA ITEMS PURCHASE REPAIRS WORK BED,CHAIRS SPRAYING ENVIR. REPAIRS WORK REFRESHMENT COLOUR METHOL AMOUNT GH 1,845.0 1,294.0 606.1 800.0 105.0 300.0

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.

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 Centre s 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) (b) (c) (d) (e) (f) Review and formulate the strategic plans based on the policies of government Review department s revenue collecting activities; Allocate resources based on objectives, output and activities Coordinate and consolidate the budget Monitor, and evaluate budget performance; and Report in accordance with these regulations.

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

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 2/3/11 3/3/11 10/5/11 31/5/11 31/5/11 31/5/11 31/5/11 PV. NO. 0487693 0487908 0487966 0487990 0487986 0487984 0487978 PAYEE DIGITAL RESEARCH SYS KELMED VENTURE GREAT WALL KELMED VEN. DOO ZO AKAPI DOWELL ENT ITEMS PROCURED NON DRUGS CLEANING MA T REPAIRS OF CAR ABDOMINAL TOWEL RENOVATION ACCOMODATION WASHING MACH. AMOUNT GHC 5,415.00 2,565.00 839.32 2,090.00 1,900 993.31 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.

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 21/04/11 1441000 MEDICAL SUP 07/04/11 1440966 SHELL FILLING STATION 7/04/11 1440967 MEDICAL SUPT 21/04/11 1440999 SAMMY ARTHUR 12/05/11 0487970 ALBERTTA SARFO PURPOSES T AND T CLAIMS FUEL DEPOSIT CHOLERA CAMPAIGN TRANSFER GRANT RENT PAYMENT AMOUNT GHC 620.0 3,000.00 4,000.00 554.00 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 won t 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 account should be recompense. MANAGEMENT COMMENT Management agreed with the recommendation and assured us of it implementation.

Unauthorized allowances to Management from Internal Generated Fund (IGF) CRITIRIA The Director General s 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 the Director General. RECOMMENDATION The beneficiary should be made to refund the various sum received MANAGEMENT COMMENT Management agreed with recommendation.

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 2/03/11 2/3/11 3/3/11 26/1/11 31/5/11 31/5/11 PV.NO 0487695 0487694 0487911 0487663 0487990 0487987 PAYEE CAPSTONE PRINT JOKWAT ENT ADVANCE MEDITECH CAR OWNER KELMED VEN DOWEL ENT ITEMS COSTING SHEET 20,000 NHIS FOLDER 2000 DENTAL CHAI PARTS DISLODGEMENT ABDOMINAL TOWEL WASHING MACH. AMOUNT GHC 1,400.00 4,600.00 2,000.00 4,000.00 2,090 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 Procurement Officer to function proper. RECOMMENDATION The BMC should empower the Procurement Officer to function proper rather than rescheduling him to Stores and Supply Unit.

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 between the payee and a resident person other than an individual exceeding fifty currency Points, the person making the payment shall withhold tax on the gross amount of the payment at the rate prescribed in Part IV of the First 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 26/01/11 19/01/11 26/1/11 26/01/11 12/05/11 5/4/11 PV.NO 0487663 0487651 0487911 0487662 0487970 0487956 PAYEE TRANSACTION DISLODGEMENT ELECTRONIC SIREN DENTAL CHAIR PARTS REPAIRS OF VEHICLE RENT PAYMENT 8% REVONATION TAX GHC 5% 200.00 15.00 100.00 64.19 499.20 759.73 AMOUNT GHC 4,000.00 300.00 2,000.00 1,283.75 6,240.00 15,194.50 554.00 4,000.00 5,000.00 38,572.25

CAR OWNER NO WEAPON ADCANCE MID AUTO WORLD ALBER SARFO JOETHUR &OTHERS 21/4/111 1440999 SAMMY ARTHUR 7/4/11 1440967 MEDICAL SUPT 5/4/11 0487957 MEDICAL SUPT

TRANSFER GRAN(PAYE) 69.92 ALLOWANCES 200.00 ALLOWANCES 250.0 2,158.04

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.

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 action and 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

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 external and 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

REGIONAL HEALTH DIRECTORATE

1. Expired Fire Extinguishers Criteria Section 28 (1a&b) of the Ghana National Fire Service Act, 1997 (ACT 537) required premises to have 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

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 be made for work not done, goods not supplied or services not rendered whether under a contract or 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 21/12/10 Pv.No 0213154 Cheque No 633358 Payee Sir Joe Amount 3,750.00

Cause The Finance Department 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 Appendix D Cause

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.

Assets Register Not Maintained 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. 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 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

Though the Audit Report Implementation Committee was in place, the secretary could not provide 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 the Parliamentary Accounts Committee (PAC). Recommendation The Head of the BMC must show some interest in the activities of the ARIC by requesting for minutes of ARIC meetings.
Payment Vouchers Without Supporting Documents - 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 to December 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

5. Unrecovered Advance To Regional Health Directorate 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. 8.

Indebtedness Level of RMS to Suppliers Stood at GH2,786,583.54 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 its Suppliers 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.

Effect The inability to meet credit terms puts the Regional Health Directorates 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 to ensure 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

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 thrust moneys 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

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 the Hospital, but failed to provide some at the pharmacy stores, General stores, the canteen and the mortuary 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 funds have been invested in the medicines, non drug consumables and other assets.

Recommendation We recommend that management should as a matter of urgency contact the district fire service to 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. 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).

(ii)

Causes It appears the estate officers have not been sufficiently trained on fixed asset management hence the lapses. Effect The hospital might not be able to trace its assets in event of theft if proper records are not maintained. Assets not indentified marked or labeled are susceptible to theft. Recommendation We recommend to management to liaise with the Regional Health Directorate 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 Health Directorate to post some staffs that are not available in the Hospital

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 madam Dorcas Quarshie who went on compulsory retirement on May 23, 2010 continue to 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 Retirement Period of separation May 2010 - date Amount of unearned salary GH 5,763.68

Dorcas Quarshie Causes

602958

Even though inputs were prepared and send to Controller and Accountant Generals Department, 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 the amount into the consolidated fund.

Management comments