| EXECUTIVE SUMMARY OF THE 2000 ANNUAL AUDIT REPORT ON THE BATANES GENERAL HOSPITAL |
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| INTRODUCTION Creation and Mandated Functions The Batanes General Hospital (BGH) originated as a public dispensary by virtue of Philippine Rehabilitation Act of 1946. In 1993, Republic Act (RA) 7160, known as the Local Government Code of 1991, authorized its devolution to the Provincial Government of Batanes and became the Batanes Provincial Health Office. With the passage of RA 8454, it was re-nationalized and upgraded to a tertiary level II hospital, and was renamed as the Batanes General Hospital. It is the mandated function of the hospital to provide quality health care to all through upgraded equipment and facilities, adequate and competent technical manpower, upgraded human resource capabilities, adequate medicines and supplies, and expansion of building and structures. Financial Profile For calendar year 2000, the Batanes General Hospital received a total allotment of P29,595,000.00. It incurred expenditures totalling P25,501,l44.27, thus, leaving a balance of P4,093,855.73. The assets, liabilities, residual equity and residual equity during the year amounted to P17,067,086.16, P11,852,145.79 and P5,214,940.37, respectively. SCOPE OF AUDIT The audit covered the accounts and operations of the Batanes General Hospital for the period ended December 31, 2000. We also included in the report the results of the comprehensive audit conducted by the audit team covering the period August 1, 1999 to September 30, 2000. The audit was aimed at ascertaining the propriety of disbursements, the reliability of financial reports and the adequacy of accounting books and records. Likewise, we ascertained the agency's compliance with laws, rules and regulations and budgetary requirements as well as adherence to prescribed policies and procedures. We also evaluated systems and operational procedures applied by management to determine if resources were utilized economically, efficiently and effectively. We post-audited and certified accounts up to November, 2000. The results, however, of the value for money audit conducted are in a separate report. STATE AUDITOR'S REPORT ON THE FINANCIAL STATEMENTS We rendered a qualified opinion on the fairness of the presentation of the financial statement, since the fixed assets transferred by the Provincial Government to the hospital were not booked-up. SUMMARY OF SIGNIFICANT FINDINGS AND RECOMMENDATIONS For the exception cited above the Auditor recommended that the hospital should book-up all properties acquired be it through purchase or donation in order to reflect the correct figures in the financial statements. The following are the other significant findings and the corresponding recommendations: Failure of management to follow strictly the rules and regulations stated particularly in Section 4 of the memorandum of Agreement with PCSO, resulted to uneconomical and wasteful use of government resources. Comply with the provisions of the Memorandum of agreement to avoid the uneconomical and wasteful use of government resources. Coordinate with the DOH regarding inspection of the medical equipment and with the Dealer/Supplier on the possible repair/rehabilitation of those that were found defective and without accessories in order to maximize their use. Disbursements covering various purchases and travelling allowances totalling P7,159,042.72 were suspended in the audit due to the doubtful validity of supporting documents. Comply strictly with the provisions of COA Circular No. 85-55A, dated September 8, 1985 and Executive Order No. 284 to avoid suspension and/or disallowances in audit. Likewise, limit the granting of official travel in order to avoid waste of government funds and time. Disregard for principles of internal control and the seeming laxity of concerned officials in the processing of claims resulted to audit suspensions and disallowances totalling P7,385,988.01 and P120,288.60, respectively. Cause the immediate settlement of the audit suspensions and disallowances. Direct the Accountant to take extra caution in the processing of claims to avoid suspensions and disallowances in audit. Inventory Report of equipment was not prepared and submitted due to failure of management to conduct the required physical count, hence, their existence, condition and whereabouts could not be ascertained. Prepare and submit inventory report of equipment, supplies and materials, and conduct physical count of same to ascertain their existence, whereabouts and actual physical condition. Failure of the accountant to book-up equipment and other assets transferred from the Provincial Government after the re-nationalization of the hospital, resulted to understatement of the fixed asset account. Require the Accountant to book-up all properties of the agency whether acquired through purchase or donation, in order to reflect the correct figures in the financial statements. The above findings and recommendations were discussed with management on December 15, 2000. Their views and reactions are incorporated in the report where appropriate. During the calendar year 2000, the Batanes General Hospital showed a very remarkable performance in two (2) major programs, surpassing even its accomplishments during the previous year. Based on the reported accomplishments under its program on Hospital Care, the hospital was able to serve 17,960 out of 13,785 targeted number of in-patients/out-patients, equivalent to and efficiency rating of 130%. Likewise, under the National Voluntary Blood Service Program, the agency exceeded its target with its accomplishment of 170 blood donors recruited, representing 212% of its target of 80. Other significant accomplishments are shown on Annex "A". [ Back to List - DOH ] |