TIPS ON AUDITING & IMPORTANCE OF KEEPING ACCURATE RECORDS BY BELLO A.F.E(Mrs.) DHML

* AUDIT * WHY AUDIT? * IMPORTANCE OF KEEPING ACCURATE RECORDS * ACCOUNTING BOOKS FOR MILITARY PCP’S TO COMPLY WITH. WHY? * NEED FOR FINANCE OFFICERS OR ACCOUNTS CLERKS TO HANDLE/ PREPARE ACCOUNTING BOOKS :

AUDIT Is an appraisal function to examine and evaluate activities in an organisation, promoting effective control at reasonable cost. WHY AUDIT? Is to assist members of the organisation in the effective discharge of their responsibilities. To this end internal audit furnishes them with analyses, appraisals, recommendations, counsel and information concerning activities reviewed.

THE IMPORTANCE OF KEEPING ACCURATE RECORDS Keeping well planned and organized financial records is very important for the success of your project or organization. Whatever type of activity you are involved in or organization you are running, if money is involved you need to be able to keep track of your financial activities. Well planned and organized financial records make it much easier for you to Know how you are doing financially. Government organization or parastatals are legally required to keep accurate financial records and documentations. :

BASIC RECORD KEEPING DOCUMENTATION Bank statement Cash book Purchase requisition form Payment voucher Receipt

WHAT IS A BANK STATEMENT. A bank statement is a printed record of all the money paid into (credited) and taken out (debited) of a customer's or organization bank account within a particular period. In the statement we have the: Debit column money withdrawn Credit column money received Balance column-total left in the account.

WHAT IS A CASH BOOK? A cash book is a system to help you organize your finances. It is a simple record in which you can record all payments made and incomes received. There are different types of cash books – e.g. it can be a simple hand-written book, a spreadsheet on a pc, or a computerized system. Whatever system you choose it’s important to start your cash book correctly and maintain it regularly. This will help make it easier for you to manage your finances and also assist those assessing your financial situation like the auditors).

CASH BOOK ACCOUNTING SYSTEM A cash book records all financial transactions, keeps you financially up-to-date, and allows you to keep control over your finances. The cash book keeps track of receipts and payments. It tells you: How much money has been paid into the bank Where the money came from What cheques have been paid out, to whom and for what the total for the month or year for specific purposes e.g. drugs, clinical reagent the total for the month or year for all income and expenses your current bank balance bearing any other bank charges

PURCHASE REQUISITION FORM What is a purchase requisition? A purchase requisition is a form used to initiate the purchase of goods or services. The officer in charge of authorization is to approve the requisition for the department requesting. Then the purchasing process begins. The booklet is kept by every department in the hospital, MRS

1 White copy For Accounts department The booklet copy yellow for the department 1Blue copy For Internal control / Auditor

Please be sure to provide the following information on the requisition form: required delivery date complete description of item's) requested including model and part number, if available quantity, unit of measure, and estimated cost for each item suggested vendor name, address, telephone and fax numbers, if known supporting documentation, if available Requisitioner’s and end user's name and phone number Prepared by with name and signature Approved by with name and signature

UNIT PR No. _______ PURCHASE REQUISITION Date________ REQUESTING DEPARTMENT ________________________________ S/NO Item DescriptionQtyUnit PriceAmount TOTAL Prepared by Signature Name Rank Designation Date Approved by Signature Name Rank Designation Date DHML PURCHASE REQUISITION FORM

WHAT IS A PAYMENT VOUCHER (PV)? A payment voucher is a document that is used to document or to record a payment. It usually contains information about the beneficiary of the payment and the nature of the transaction vis the quantity and unit price and the amount. Also supported with the suppliers invoice.

RETIRING YOUR FILES Requisition form Which comes along with items required and approval Payment vouchers Receipts

The books were actually brought out by DHML to have an organised accounting system in which at any given time documents/books are being perused, the books will always be according to General Accepted Accounting Standards. As uniformed people, uniformed accounting system is imperative. Yesterday, the general view was for a better advocacy, better management of ACCOUNTING BOOKS FOR MILITARY PCP’S TO COMPLY WITH. WHY?

funds, prompt, appropriate and qualitative health care delivery, as well as capitation payment, as such we should also have a better accounting system.

It has been observed that the Doctors are both the medical officers and accounting officers. This is not a good practice because Doctors are not trained on accounting. Visits to several PCP’s shows that books kept by medical officers were left undone. This gives the need for Finance Officers in Hospitals and probably an Accounts Clerks in MRS and if none, a member of the NHIS Committee should be appointed to handle this responsibility. NEED FOR FINANCE OFFICERS OR CLERKS TO HANDLE/PREPARE ACCOUNTING BOOKS

Directors of Medical Service Corp, very senior officers, Officers, Ladies and Gentlemen. I believe with this short presentation we will all begin to put into practice what we have discussed briefly today, so that our records will be accurate and be transparent. May God help us all.

THANK YOU.