Overview of the Audit
The Audit Report 2023-2024 for Shatac Hospital has been independently reviewed by Parker Russell-AJS, chartered accountants. The audit evaluates the hospital’s financial performance for the fiscal year ending June 30, 2024. This review ensures transparency in financial reporting, compliance with international standards, and offers a detailed examination of the hospital’s finances, liabilities, and income sources.
Financial Summary
This section covers the main financial results for the year:
- Income:
- Ambulance Income: Rs. 904,230 (2024) vs Rs. 1,087,987 (2023)
- Dispensary Income: Rs. 913,010 (2024) vs Rs. 807,200 (2023)
- Laboratory Income: Rs. 16,761,950 (2024) vs Rs. 13,995,430 (2023)
- Maa Bacha Primary Health Unit Income: Rs. 127,900 (2024)
- Maternity Home Income: Rs. 523,050 (2024) vs Rs. 27,135,050 (2023)
- Other Income: Rs. 97,500 (2024) vs Rs. 9,297,500 (2023)
- Total Income: Rs. 4,736,020 (Restricted Funds) + Rs. 16,673,193 (Unrestricted Funds) = Rs. 21,409,213 (2024).
- Expenditure:
- Program Expenses: Rs. 4,736,020 (2024) vs Rs. 85,406,483 (2023)
- Administrative Expenses: Rs. 6,296,940 (2024) vs Rs. 6,701,416 (2023)
- Total Deficit Before Taxation: Rs. (4,327,770) (2024)
Financial Statements
a. Statement of Financial Position (Balance Sheet) – Page 3
This statement provides a snapshot of the hospital’s financial position:
- Total Fund and Liabilities:
- 2024: Rs. 63,060,891
- 2023: Rs. 54,736,091
- Assets:
- Non-current Assets: Rs. 45,044,252 (2024)
- Current Assets: Rs. 18,016,638 (2024)
- Cash and Bank Balances: Rs. 11,703,099 (2024) vs Rs. 1,912,367 (2023)
b. Statement of Income and Expenditure – Page 2
This statement gives detailed figures on the income and expenses:
- Income:
- Total Ambulance Income: Rs. 904,230 (2024)
- Total Laboratory Income: Rs. 16,761,950 (2024)
- Expenditure:
- Program Expenses: Rs. 4,736,020
- Administrative Expenses: Rs. 6,296,940
- Total Deficit: Rs. (4,327,770) before taxation.
c. Statement of Cash Flows – Page 1
This section reveals how the cash moved in and out of the hospital:
- Cash from Operating Activities: Rs. 8,938,902 (2024) vs Rs. 1,317,636 (2023)
- Cash from Investing Activities: Rs. 851,830 (2024) vs Rs. (854,580) (2023)
- Net Cash Generated: Rs. 8,938,902 (2024)
Notes and Explanations
The Notes to Financial Statements (Pages 3-25) give a detailed explanation of various accounting policies and financial items:
- Deferred Income and Grants:
- Deferred grants for non-capital expenses are recognized as income in the period when they are spent.
- Grants for capital items: Recognized over the life of the capital items.
- Cash Flow and Debt Management:
- The hospital has maintained a stable cash position with a significant increase in cash and bank balances, up to Rs. 11,703,099 by the end of the fiscal year 2024.
- Provisions for Liabilities:
- The hospital accounts for potential liabilities based on the present obligation from past events.
Detailed Expenses Breakdown
- Program Expenses:
- Ambulance Services, Laboratory Services, and Maternity Home Services constitute a significant part of the hospital’s total expenditure.
- Salaries and Benefits:
- Total salaries for staff, including medical professionals and administration, have been adjusted for the year.
Financial Position and Future Outlook
a. Strategic Investments
- The hospital has focused on improving its infrastructure, especially in the areas of ambulance services and laboratory capabilities.
b. Future Projections
- The hospital is expecting gradual growth in income, mainly through improved healthcare services and better financial management strategies.
