Central Luzon Sanitarium (CLC), was established in 1936 and become operational in 1940 to serve Hansen Disease (Leprosy) patients in Luzon. In April 1971, Presidential Proclamation No. 843 apportioned one hundred thirty (130) hectares of land for hospital area. Republic Act No. 7999 dated April 22, 1995 and Presidential Proclamation No. 66 dated August 30, 2000 implemented by the National Housing Authority (NAH) declared that seventy (70) hectares of the apportioned land shall be use for housing nits of Boniface beneficiaries and sixty (60) hectares to be administered by the ADJOURN. Presidential Proclamation 366 dated August 30, 2002 further mandated that fifty (50) hectares from the sixty (60) hectares administered by ADJOURN shall be used for housing units for Boniface beneficiaries leaving the hospital ownership of only ten (10) hectares. On December 24, 1980, CLC was renamed Dry. Jose N.
Rodriguez Memorial Hospital through Bats Bananas No. 91 . In 1995, with the introduction of Multi Drug Therapy (MAT), leprosy is not prevalent in the area so the hospital shifted some of its line arrives into general care to meet the public health needs of the populace around the hospital. It also serves as a training center of Health Worker in leprosy control. On April 10, 2007, Republic Act No. 9420 was enacted converting 200 beds of the authorized 2000 beds for tertiary health care and transferred the administrative jurisdiction of the Hospital from Region ‘V to National Capital Region.
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For Calendar Year 2011, the license issued by the Department of Health was for Level II, General Hospital (secondary) but, as of February 2011 Hospital management applied for Level Ill, Tertiary General and Special Hospital. ADJOURN is envisioned to be a health service excellence, compassionate, quality tertiary general and leprosy care, through its mission to provide the best among tertiary general and leprosy health care. The Hospital is headed by Dry.
Edgar AS Savonarola, Chief of Sanitarium Ill, assisted by the Chief Medical Professional Staff, the Chief Nurse, the Administrative Officer, support staff and 29 contractual. Financial Highlights The ADJOURN assets, liabilities, government equity and sources and application of funds for ICY 2010 with comparative figures in ICY 2009 are as follows: Particulars Assets Liabilities Government Equity Sources of Funds Application of Funds 2010 261 162733,677. 29 2009 Increase/(Decrease) POP ,475. 93 (4џ08,765. 53) 80,601 ,071. 9 Operational Highlights For the year 2010, consistent with R. A. No. 9420 converting the 200 beds of the 2,000 bed of ADJOURN for tertiary general health care, the Hospital has constructed the Out- Patient Department, on-going construction of Hospital Main Building, repair/ renovation of the hospital facilities and upgrading of equipment to conform with DOD standards for tertiary general facility. The following are the major accomplishments for hospital operations during the year as against target: Department Out Patient Emergency
Laboratory Surgery General Care Custodial Care Accomplishment Actual 64,058 56,174 103,232 313 507% Percentage of Ta regret 45,573 55,037 1 o,oho 385 221% 140. 56 102. 07 103. 23 81 . 3 The Hospital has an authorized bed capacity of 1,800 for Custodial Care and 200 for General Care. For ICY 2010, the hospital bed occupancy rate was 100 beds for General Care and 950 beds for Custodial Care. Scope of Audit The audit covered the review of accounts and operations of the Hospital for ICY 2010.
The audit was conducted to: (a) verify the level of assurance that may be placed on management’s assertions on the financial statements; (b) recommend agency improvement opportunities; and (c) determine the extent of implementation of prior years’ audit recommendations. Independent Auditor’s Report on the Financial Statements The Auditor rendered a qualified opinion on the fairness of presentation of the financial position and the results of operations of the hospital as of December 31, 2010 due to material exceptions noted in audit which are stated in the Independent Auditor’s Report and discussed in detail in Part II of the report.
Summary of Significant Audit Observations and Recommendations The following are the audit observations and corresponding recommendations, which were discussed tit management officials concerned, details of which are discussed in the Part II of the report. Management views and comments were incorporated in the report, where appropriate. 1 . Ownership of bank credits in the amount of IPPP,OHO. O for account number 06221029-00 could not be determined due to the absence of supporting documents, as such the bank account with LB-Commonwealth Branch could not yet be closed (Para’s. 3-37). We recommended and management agreed that the Chief of Hospital through the Administrative Officer communicate with LB-Commonwealth Branch to determine he nature of the payment made to the hospital so that proper accounting of the amount could be made. 2. Completed structures funded by donations with approximate values of Pl 1 were not recorded in the books in the absence of documents to support the turn-over of the assets to the Hospital which resulted in the understatement of Hospitals and Health Centers and Government Equity accounts both by that amount (Para’s. 7-22). We recommended that the Hospital Engineer conduct appraisal of the unbroken structures for submission to the Audit Team for review and evaluation. On the basis f the approved appraised value, the Administrative Officer prepare Deeds of Donation to be signed by the Chief of the Hospital and the concerned donor to effect the transfer of the assets to the former.
The approved appraised value together with the signed Deeds of Donation be then used as references in recording the value of the structures in the books of accounts. 3. Discrepancy of UP,981 ,793. 11 exists between the records of the Accounting Section and the Reports on Inventory for Office and IT Equipments, Furniture and Fixtures, Motor Vehicles, Library and Books of the Property Section, which casts doubt on the accuracy of the reported balances for the accounts of as of year-end.
Further, there were some lapses in the recording and classification of property which were not in consonance with regulations related thereto (Para’s. 23-32). We recommended that management require: The Accountant to: (I) reclassify the equipment to their appropriate accounts in accordance with NAGS Chart of Account; and (it) provide depreciation for all the assets pursuant to Section 4 of the Manual on the NAGS, Volume l. The Property Officer to: (I) arrange/sort the property reported in the Inventory
Reports by account title to give way to proper matching of the assets with those recorded in the books of accounts; and (ii) prepare an IRRUPT for the unserviceable assets as prescribed by Section 64 of Manual on the NAGS, Volume II. The Accountant and Property Officer to determine the causes of the disparity in the balances of the asset accounts for proper adjustments and that henceforth, reconcile their records on a periodic basis to avoid recurrence of discrepancy in the account balances.
The Chief of Sanitarium create an Appraisal Committee to appraise the value of donated and fabricated equipment for subsequent recording to the books of counts. 4. The items of roofing, carpentry and repainting of the newly Renovated Philately Building were excessive by IPPP,320. 65. Moreover, the completion of the project was delayed for 49 calendar days from its due date. Supporting documents approving the extension on the completion of the project were not submitted to the Auditor’s Office for audit (Para’s. 38-46).
We recommended that the Project Engineer: Require the contractor to fully screw the roofing sheets to avoid peeling-off in the time of strong winds or typhoons; Collect from the contractor the amount of IPPP,320. 5 representing the deficiencies in the contracted items of works – roofing, carpentry and repainting works; and Ensure that all the supporting documents are submitted to the Auditor’s Office for audit purposes. 5. The Property Officer and Hospital Inspector accepted the deliveries of two (2) equipment costing UP,295,OHO.
O although these were non-compliant with required specifications in the Purchase Orders (POs) hence, the Hospital could not provide the proper examination procedure to its client which is the primary objective of the procurement (Para’s. 1-8). We recommended that management require: Eleven’s International Corporation to activate the remaining six drawers with drawer numbers 1, 2, 3, 8, 9 and 10 in full compliance with the obligations or replace the machine, otherwise, refund to the hospital the amount it received as payment for the machine.
Master Company to upgrade the unit capability up to 360 tests so that it can perform SIS examination or replace the machine, otherwise, the machine delivered should be rejected/returned and the whole amount paid to the supplier should be refunded to the Hospital. We also recommended that the Property and Inspection Officer, before issuing the ratification on the conformance of items delivered with the required specifications in the POs, ensure that all the requirements stated in the contract are complied with instead of focusing only on the quantity.
In case of any deficiencies noted, the deliveries be rejected and require replacement thereof. 6. Lack of procurement plan, policies and guidelines on the repairs and maintenance of hospital facilities resulted in overstocking of inventories for supplies and materials which is not in accordance with Section 23 of RA No. 9770, the General Appropriations Act for Fiscal Year 2010 which limit the stocks to be procured to only aroma three-month requirements (Para’s. 9-16).
We recommended that the Head of Plumbing, Electrical and Carpentry Division: Conduct inspection of the Hospital facilities to determine those that needed repair so that the excess stocks can be immediately issued and used; Formulate policies and guidelines on the preventive maintenance and repair of Hospital buildings and facilities; Identify the facilities which needed repair, prepare work programs and bills of materials to determine the quantity and the cost of materials to be procured and when the materials are needed.
On the basis thereof, prepare a procurement plan which will be the basis of the lists of materials to be included in the APP; and Ensure that the stocks on hand are not in excess of the normal three-month requirements. 7. The Section Heads of the Maintenance Division who are responsible for the receipt, storekeepers and issuance of supplies and materials are the ones recording the movement of stocks in the Supplies Ledger Cards (Sols) instead of the Accounting Section which is not in accordance with Section 12 of the Manual on the NAGS, Volume II and sound internal control.
Further, the Accountant uses the CLC to record s??ances of materials instead of the Report of Supplies and Materials Issued (RSI) to be submitted by the Property Officer which is not in conformity with Section 62 of the Manual on the NAGS, Volume II (Para’s. 47-53). The Section Heads of the Maintenance Division to discontinue with the recording of the receipts and issuance of stocks in the CLC which should be maintained by the Accounting Section.
Property Section to: (I) maintain the Stock Cards to record movements of stocks; prepare the RIMS to report the issuance of supplies; and (iii) copy furnish the Accountant with the RIMS as basis of the preparation of JIVE. The Accountant to: (I) maintain the CLC to record the receipts and issuance of supplies; (it) use the RIMS to be furnished by the Property Section in the preparation of the JIVE; and (iii) tally the credits for account Other Supplies Expenses per JIVE and schedule/list of materials issued. 8.
The costs of supplies for the fabrications of office tables, examining tables, shelves, and cabinets and materials and labor for the renovation of Delivery Room amounting to IPPP,969. O and IPPP,231. 80, respectively, were recorded under account Other Supplies Expenses instead of accounts Hospitals and Health Centers and Furniture ND Fixtures which is not in accordance with Sections 86 and 118 of the Manual on the NAGS, Volume Ill. These overstated account Other Supplies Expenses by IPPP,200. 80 and understated account Hospitals and Health Centers by IPPP,231. 0 and account Furniture and Fixture by IPPP,969. O for/as of ICY 2010 (Para’s. 54-61). The Property Officer to prepare the necessary Property Cards for the fabricated items as prescribed under Section 42 of the same Manual, assign property number and an ARE for the issued items. The Maintenance Division to: (I) prepare an inventory list of the finished products tit their corresponding costs to be submitted to the Property Section; and (ii) henceforth, in future similar cases, prepare an inventory list of the finished products with the corresponding costs and turn-over the same to the Property Section.
The Accountant to draw a JIVE to reclassify the costs of the renovation and fabrication from Other Supplies Expenses account to accounts Hospitals and Health Centers and Furniture and Fixtures, respectively. 9. The practice of the Hospital of not recognizing in the books of accounts the dissonances which are final and executors as prescribed by COCA Circular No’s. 009-006 and 2004-008 resulted in the understatement of Receivable and Government Equity accounts both by representing the balance of unreturned disallowed, as of year-end of ICY 2010 (Para’s. 62-67).