Overview of the Audit
The Audit Report 2022-2023 for Shatac Hospital is an independent review conducted by Parker Russell-AJS, chartered accountants. The audit evaluates the financial position and performance of the hospital as of June 30, 2023, in compliance with international standards of auditing. The goal of this audit is to ensure transparency in financial management, including the hospital’s income, expenses, liabilities, and overall financial health.
Financial Summary
This section outlines the primary financial results for the year:
- Income:
- Ambulance Income: Rs. 1,087,087
- Laboratory Income: Rs. 16,050,145
- Maternity Home Income: Rs. 10,207,500
- Miscellaneous Income: Rs. 4,460,000
- Donations and Grants: Rs. 1,374,788
- Other Income: Rs. 397,907
- Total Income: Rs. 1,087,087 (unrestricted funds for the year).
- Expenditure:
- Program Expenses: Rs. 72,330,467
- Administrative Expenses: Rs. 5,239,000
- Other Operating Expenses: Rs. 13,458,520
- Total Deficit: Rs. (121,978,785) before tax.
- Total Deficit for the Year: Rs. (121,978,785)
Financial Statements
a. Statement of Financial Position (Balance Sheet) – Page 4
The financial position statement details the hospital’s assets and liabilities for the year:
- Total Fund and Liabilities:
- 2023: Rs. 54,759,591
- 2022: Rs. 55,818,876
- Total Assets:
- 2023: Rs. 47,065,276
- 2022: Rs. 48,412,668
- Current Assets:
- 2023: Rs. 23,358,467
- 2022: Rs. 22,989,540
- Non-current Assets:
- 2023: Rs. 22,206,809
- 2022: Rs. 25,423,541
b. Statement of Income and Expenditure – Page 5 & 6
This section details the income sources and expenses for the year:
- Income:
- Ambulance Income: Rs. 1,087,087
- Laboratory Income: Rs. 16,050,145
- Maternity Home Income: Rs. 10,207,500
- Total Income: Rs. 1,087,087
- Expenditure:
- Program Expenses: Rs. 72,330,467
- Administrative Expenses: Rs. 5,239,000
- Total Deficit: Rs. (121,978,785)
c. Statement of Cash Flows – Page 8
The cash flow statement provides insights into the cash generated or used by the hospital in its operating, investing, and financing activities:
- Cash Generated from Operating Activities: Rs. 334,999,000
- Cash Used in Investing Activities: Rs. (12,388,000)
- Net Increase in Cash and Cash Equivalents: Rs. 3,204,101
Notes and Explanations
The Notes to Financial Statements (Pages 9-19) provide additional explanations on significant accounting policies, liabilities, assets, and other financial details:
a. Significant Accounting Policies – Page 9
- Policies such as income recognition, taxation, and accrual of expenses are outlined in this section. Key items include:
- Income from Non-Profit Activities: Recognized as a tax credit in line with tax laws.
- Accrual of Liabilities: The hospital recognizes liabilities for goods and services provided, even if not billed by the end of the fiscal year.
b. Deferred Income and Grants – Pages 12-13
- Non-Capital Grants: Recognized as deferred grants and treated in the income and expenditure account as the expenses are incurred.
- Capital Grants: Transferred to capital account at fair value and amortized over the useful life of the associated assets.
c. Liabilities and Contingencies – Pages 5 & 15
- Contingencies: No significant liabilities or commitments were disclosed as of June 30, 2023.
- Deferred Income: Grants from donations and ambulances are recognized when services are provided.
d. Property and Equipment – Page 14
- Details on the hospital’s property, including land, buildings, hospital equipment, and vehicles.
- Total Depreciation for the Year: Rs. 7,007,095
Detailed Expenses Breakdown
a. Program and Service Expenses
- Major expenditure areas include:
- Ambulance Expenses: Rs. 61,463,459
- Salaries and Benefits: Rs. 47,979,670
- Medical and Healthcare Expenses: Rs. 17,341,809
- Oxygen and Medical Supplies: Rs. 5,598,879
- Mobile Phone Expenses: Rs. 1,321,948
b. Operational Expenses
- Electricity: Rs. 3,643,522
- Repairs and Maintenance: Rs. 7,023,798
c. Salaries and Other Benefits
- Total Salaries and Benefits: Rs. 9,154,506 for administrative and clinical staff.
Financial Position and Future Plans
a. Strategic Investments
- The hospital is planning to expand its facilities and services. Focus areas include improving patient care and upgrading equipment.
b. Debt and Loan Management
- The hospital maintains a stable debt-to-equity ratio, which is essential for financing its expansion projects.
c. Future Financial Projections
- The hospital is anticipating a slight increase in income due to the expansion of services and better financial management.
Conclusion and Transparency
This audit report highlights Shatac Hospital’s ongoing commitment to transparency in its financial practices. With continued efforts in improving operational efficiencies, managing costs, and increasing donations and grants, the hospital is well-positioned to provide high-quality healthcare services for the community.
