AG picks holes in J’pura hospital financial statements
The Auditor-General has made some startling revelations in his report on the Financial Statements of the Sri Jayawardenepura General Hospital Board for the year ending December 31, 2008.
The report dated August 13, 2009, notes numerous irregularities in the Statement.
Accounting deficiencies have been observed in the construction of the official quarters of the Director where the depreciation for the year was overstated by Rs. 101,887 and that the consultancy fee in connection with the construction of Phase II of the Advanced Cardiac Centre was capitalised despite non-completion. The report has also revealed that a sum of Rs. 1,815,368 out of Rs. 2,515,368 spent on the installation of the computer network had been capitalised and that the actual cost of the Advanced Cardiac Centre was understated. It has also been observed that an over provision of Rs. 4,327,387 has been made by way of gratuity of 451 officers.
The AG’s report has further observed discrepancies amounting to Rs. 17,867,173 (drugs, surgical material and medical equipment spare parts) and Rs. 21,702,283 (bandage material store, lab, general store and X’ray division) totalling Rs. 3,835,110.
The AG also mentions that action has not been taken to settle or write back to income, advances of Hospital charges amounting to Rs. 351,461 and trade debtors balances that remained without being recovered. The report observes that hospital bills amounting to Rs. 390,999 were not made available to auditors, while confirmations for trade and services creditors relating to 130 accounts, sundry deposits and hospital charges receivable accounts were not furnished.
The report observes that the manner of evaluation of bids for the security services contract were not recorded in the register of bids called. It notes that it was irregular and payments of allowances for weekends and public holidays exceeded the limit.
The report says the advance programmes of the repairs to be done by the service supplier, in terms of the agreement, were not furnished to the hospital and no quarterly reports were furnished.
The report highlights a deficit of Rs. 91,710,985 in operations for 2008 as compared to Rs. 78,210,059 for the preceding year; that the total income of the hospital, except the Government grants received for the recurrent expenditure of the year under review, amounted to Rs. 605,553,296, while Rs. 746,728,587 was paid as salaries and wages of the staff; that the Hospital management did not considering the lowest quotation in awarding the contract for security services and that a sum of Rs. 38,806,560 remains to be settled to the National Water Supply and Drainage Board (NWS & DB); that a sum of Rs. 47,385 (VAT) in connection with repairs to machines was paid on an incorrect VAT registration number and overpayments had been made on certain medicine at prices higher than those agreed in tenders.
The AG also states that significant differences existed between the budgeted and the actual figures, indicating that the budget had not been made use of as an effective instrument of management control.
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