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Uganda Friendship Hospital, Naguru for the Year Ended 30Th June 2014

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Uganda Friendship Hospital, Naguru for the Year Ended 30Th June 2014 OFFICE OF THE AUDITOR GENERAL THE REPUBLIC OF UGANDA REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE CHINA - UGANDA FRIENDSHIP HOSPITAL, NAGURU FOR THE YEAR ENDED 30TH JUNE 2014 OFFICE OF THE AUDITOR GENERAL UGANDA TABLE OF CONTENTS PAGE List of Acronyms ...................................................................................................... ii Report of the Auditor General on the Financial Statements of the China-Uganda Friendship Hospital, Naguru for the Financial Year ended 30th June 2014 ..................... 3 Detailed Report of the Auditor General on the Financial Statements of the China -Uganda Freindship Hospital, Naguru for the Financial Year ended 30th June 2014 ...................... 6 1.0 Introduction .................................................................................................. 6 2.0 Background Information ................................................................................. 6 3.0 Functions of the Hospital ................................................................................ 7 4.0 Major Acheivements of the Hospital ................................................................. 7 5.0 Financing of the Hospital ................................................................................ 8 6.0 Audit Scope ................................................................................................... 8 7.0 Procedures Performed .................................................................................... 8 8.0 Audit Findings................................................................................................ 9 i LIST OF ACRONYMS CUFHN China-Uganda Friendship Hospital, Naguru EFT Electronic Funds Transfer KCCA Kampala Capital City Authority NACME National Medical Equipment Advisory Committee PDE Procuring and Disposing Entity PFAA Public Finance and Accountability Act PPDA Public Procurement and Disposal of Public Assets TIN Tax Identification Number UGX Uganda Shillings URA Uganda Revenue Authority HSDs Health Systems Developments ii REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE CHINA-UGANDA FRIENDSHIP HOSPITAL, NAGURU FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2014 THE RT. HON. SPEAKER OF PARLIAMENT I have audited the accompanying financial statements of the China-Uganda Friendship Hospital, Naguru (CUFHN) for the year ended 30th June 2014. These financial statements comprise of the Statement of Financial Position as at 30th June 2014, Statement of Financial Performance, Statement of Changes in Equity, Cash flow Statement together with other accompanying statements, notes and accounting policies. Management’s Responsibility for the Financial Statements Under Article 164 of the Constitution of the Republic of Uganda, 1995 (as amended) and Section 8 of the Public Finance and Accountability Act (PFAA), 2003, the Accounting Officer is accountable to Parliament for the funds and resources of China-Uganda Friendship Hospital, Naguru for the year ended 30th June 2014. The Accounting Officer is also responsible for the preparation of financial statements in accordance with the requirements of the Financial Reporting Guide, 2008, and for such internal controls as management determines necessary to enable the preparation of financial statements that are free from material misstatement whether due to fraud or error. Auditor’s Responsibility My responsibility as required by Article 163 of the Constitution of the Republic of Uganda, 1995 (as amended) and Sections 13 and 19 of the National Audit Act, 2008 is to express an opinion on these statements based on my audit. I conducted the audit in accordance with International Standards on Auditing. These standards require that I comply with the ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing audit procedures to obtain audit evidence about the amounts and disclosures in the financial statements as well as evidence supporting compliance with relevant laws and regulations. The procedures selected depend on the Auditor’s judgment, including the assessment of risks of material misstatement of the financial statements whether due to fraud 3 or error. In making those risk assessments, the Auditor considers internal controls relevant to the entity’s preparation of financial statements in order to design audit procedures that are appropriate in the circumstances but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my qualified audit opinion. Part ‘‘A’’ of this report sets out my qualified opinion on the financial statements. Part “B” which forms an integral part of this report presents in detail all the significant audit findings made during the audit which have been brought to the attention of management. PART “A” Basis for qualified opinion Transfers from Treasury General Account During the year under review, UGX.1,500,129,768 was transferred from the above account to a Sub Treasury Account, but lacked supporting documentation to enable me ascertain the purpose for which these funds were used. Qualified Opinion In my opinion, except for the possible effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements of the China Uganda Friendship Hospital, Naguru as at 30th June 2014 are prepared, in all material respects, in accordance with the Financial Reporting Guide, 2008 and section 31(6) of the Public Finance and Accountability Act, 2003. Other Matter Without qualifying my opinion further, I consider it necessary to communicate the following matter other than those that are presented in the financial statements. 4 Revenue performance The Hospital had an appropriation of UGX.9,548,296,000 for the year under review out of which it received a total of UGX.7,187,9 21,785 resulting into a shortfall of UGX.2,498,998,215 (26%). This affected implementation of planned activities which may eventually impact negatively on the achievement of the Hospital’s objectives. John F.S. Muwanga AUDITOR GENERAL 23rd March, 2015 5 PART “B” DETAILED REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE CHINA -UGANDA FREINDSHIP HOSPITAL, NAGURU FOR THE FINANCIAL YEAR ENDED 30TH JUNE 2014 This section outlines the detailed audit findings, management responses and my recommendations in respect thereof. 1.0 INTRODUCTION Article 163 (3) of the Constitution of the Republic of Uganda, 1995 (as amended), requires me to audit and report on the public accounts of Uganda and of all public offices including the courts, the central and local government administrations, universities and public institutions of the like nature and any public corporation or other bodies or organizations established by an Act of Parliament. Accordingly, I carried out the audit of the Hospital to enable me report to Parliament. 2.0 BACKGROUND INFORMATION China-Uganda Friendship Hospital, Naguru is a Referral Hospital for Greater Kampala Region, established to carry out support supervision, mainly through specialist outreach programmes, targeting mainly health units on clinical services and Public Health aspects, covering a population of over 5 million people in the Districts shown in the table below; No. DISTRICT HSDs HEALTH FACILITIES 1 Buikwe 3 55 2 Butambala 1 21 3 Buvuma 1 13 4 Gomba 1 18 5 Kampala 5 866 6 Kayunga 3 36 7 Mpigi 3 31 8 Mukono 3 104 9 Wakiso 6 362 6 China-Uganda Friendship Hospital, Naguru was handed over on the 6th of January 2012 by the People’s Republic of China to the Government of the Republic of Uganda. It is a 100 bed facility, with disciplines of Accident and Emergency services, Paediatrics, Community Health, and Medical Technology. It provides both Outpatient and Inpatient services strategically in view of the limited capacity. The hospital offers a 24-hour service to the population. Staff work in 3 shifts to ensure adequate and efficient coverage of all duties. Majority of the patients are managed as outpatients. Patients requiring specialized procedures that cannot be done on outpatient basis like obstetric, surgical, medical and paediatric emergencies are admitted. Selected cold cases by specialists are also admitted for specialist procedures. Average hospital stay is 4 days with bed occupancy of 100%. Success of the plan depends on a well-planned and effective management system to support the medical teams, efficient supply chain of drugs and supplies, a well-motivated, dedicated and committed work force of health workers and fully functional medical equipment. 3.0 FUNCTIONS OF THE HOSPITAL The Hospital’s functions include: To provide a range of general and specialised curative, preventive and rehabilitative services. To contribute to regional human resource development through training of various cadres of health workers. To conduct operational research. To contribute as requested to the Ministry’s national policy and support supervision. 4.0 MAJOR ACHEIVEMENTS OF THE HOSPITAL The Hospital’s major achievements in the year included the following; Completion of staff validation exercise and clearance of vacant posts by Ministry
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