TIPS ON AUDITINGTIPS ON AUDITING& & IMPORTANCE OF KEEPING IMPORTANCE OF KEEPING

ACCURATE RECORDSACCURATE RECORDS

BYBY

BELLO A.F.E(Mrs.) BELLO A.F.E(Mrs.) DHMLDHML

* 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

:

AUDITIs 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 withdrawnCredit column--------------money receivedBalance column-total left in the account.

FCM BFIRST CITY MONUMENT BANK PLCA MEMBER OF FIRST CITY GROUP

Type

Date

Page

Period

Currency

DOMICILIARY A/C

CURRENT A/C FCY LTD COYS

17-04-2007

1

01-10-2006 TO 17-04-2007

EUR

Account Statement

RC: No. 46713

Custom er Address

.. NEO-ED & CO. VENTURES LTDSCORPIO BLOCK IST FLOOR RIGHT WINGELEGANZA, APAPAAPAPALAGOSNIGERIA

Account No. 0062080130535002

TransactionDate

Value Date Reference Instrument No. Debit Credit Balance

01-10-0631-10-0630-11-0629-12-06

01-10-0631-10-0630-11-0631-12-06

B/FFROM 01-09-2006 TO 30-09-2006FROM 01-11-2006 TO 30-11-2006FROM 01-12-2006 TO 31-12-2006

2.101.051.05

2.606.806.80

Page Total:Grand Total:

6.30C4.20C3.15C2.10C

2.10C2.10C6.80C

000

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PLEASE A

DVIS

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MEDIA

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OF A

NY C

HANG

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ONTACT D

ETA

ILS

TOTAL

Please examine this Statement at once and report any error or discrepancy to our Management Internal Control (MIC) Department within 15 days of receipt,after which time the Statement would be deemed correct.

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 SYSTEMA 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

Unit

DHML CASH BOOK

RECEIPTS

ChequeNo PARTICULARS

B a nk

N K

C a s h

N K

C/FTOTAL N

Tota l Amount

N K

PAYMENTS

Date Voucher

NoCheque

No PARTICULARS

TOTAL N

C a s h

N K

Tota l Amount

N K

Date

Date Voucher

No

B a nk

N K

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

UNITPR No. _______

PURCHASE REQUISITION Date________

REQUESTING DEPARTMENT________________________________

S/NO Item Description Qty Unit Price Amount

TOTAL

Prepared bySignature ----------------- Name----------------Rank -----------------Designation---------------- Date----------------

Approved by Signature -------------Name----------------Rank -----------------Designation----------- Date----------------

DHML PURCHASE REQUISITION FORM

DEFE

NC

EH

EALTH MAINTEN

AN

CE

LTD.

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.

DEFENCE HEALTH MAINTENANCE LTD. PAYMENT VOUCHER

Departmental No__________________ Sub Head___________ Station___________ PV No________ Payee: _______________________________________________________________________________ Address: ________________________________________________________________________

DATE

DETAIL DESCRIPTION OF SERVICE/WORK

RATE

N : K

TOTAL N

Amount in words _________________________________________________________________________

______________________________________________________Naira ________________________ Kobo CERTIFICATE: I certify that the above amount is correct, and that the service/contract as been duly performed that the rate/price charged is/are according to regulation, fair and reasonable.

Prepared by Name______________________ Authorised by Name___________________

Designation _________________ Designation_______________ Signature____________________ Signature_________________

Payee: Name:_______________________ Date_____________________

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

THANK YOU.