A) Hamile Teaching Hospital
Statement of Financial Performance for the year ended 31 December 2023

Notes to the Statement of Financial Performance:

1. Grants & Donation
   Donor grants: 16,000
   Transferred to deferred grant (40% * 16,000): (6,400)
   Total: 9,600
2. Internally Generated Revenues
   Out-patient services fees: 35,000
   In-patient services fees: 40,000
   Rent (150 – 20): 130
   Pharmacy sales: 180,000
   Diagnostic: 85,000
   Mortuary Services: 9,400
   Cafeteria and Canteen: 4,650
   Extension services: 14,500
   Revenue receivable (NHIS): 11,000
   Total: 378,660
3. Compensation for employees
   Established position salaries: 62,000
   Casual Labour: 5,600
   Limited engagements: 200
   Total: 69,200
4. Use of Goods and Services
   Contract appointment (local and foreign): 1,400
   Rent (500 + 300): 800
   Insurance: 340
   Consultancy services: 120
   Conferences, workshops and training: 4,500
   Office expenses: 20,000
   Repairs and maintenance: 6,000
   Purchase of drugs (60,000 + 22,000 – 15,000): 67,000
   Purchase of medical consumable (80,000 + 12,000 – 9,000): 83,000
   Total: 234,950
5. Consumption of fixed assets
   Furniture & Office Equipment: 40,000
   Medical equipment & accessories (100,000 + 20,000 write-off): 120,000
   Motor vehicles: 24,000
   Buildings: 21,000
   Total: 205,000
6. Foreign Exchange difference
   Debt at 1/1/2023 ($1 = GH¢3.5 of $100,000): 350,000
   Debt at 31/12/2023 ($1 = GH¢5 of $100,000): 500,000
   Exchange difference: 150,000

   B) Hamile Teaching Hospital
   Statement of Financial Position as of 31 December 2023

   	Note	GHc’000	GHc’000
   Non-Current Assets
   Property, Plant and Equipment	5		585,000
   Current Assets
   Inventory	7	24,000
   Receivables	8	91,000
   Cash and cash equivalent		30,000
   			145,000
   Total Assets			730,000
   Current Liabilities
   Payables	9	26,300
   Deposits (rent)		20
   Deferred grant		6,400
   			32,720
   Non-current liabilities
   Loans			500,000
   Total Liabilities			532,720
   Funds
   Accumulated Fund	10		197,280
   Total Funds and Liabilities			730,000

   Notes to the Statement of Financial Position:
   5. Non-current Asset Schedule

   	Furniture & Office Equip	Medical Equip	Motor Vehicles	Land & Buildings	Total
   	GHc’000	GHc’000	GHc’000	GHc’000	GHc’000
   Cost	200,000	420,000	120,000	300,000	1,040,000
   Less: Acc Dep/impairment
   Balance b/f	40,000	120,000	20,000	70,000	250,000
   Write off (impairment)		20,000			20,000
   Charge for the year	40,000	100,000	24,000	21,000	185,000
   	80,000	220,000	44,000	91,000	435,000
   Carrying amount	120,000	180,000	76,000	209,000	585,000

   NB: It has been assumed that the medical equipment that has been destroyed was acquired during the year and therefore there is no accumulated depreciation prior to the damage. However, all other assumptions such as pro-rated approach are equally correct since the question was silent on the true situation of the asset.

   7. Inventories
      Inventory of drugs: 15,000
      Inventory of medical consumables: 9,000
      Total: 24,000
   8. Receivables
      Receivables – NHIS per trial balance (65,000 + 11,000): 76,000
      Receivable from patients: 15,000
      Total: 91,000
   9. Payables
      Per trial balance: 26,000
      Rent accrued: 300
      Total: 26,300
   10. Statement of Changes in Net Asset and Equity
       Balance per Trial Balance: 336,210
       Deficit of operation: (194,140)
       Total: 197,280

       C) Notes to the Financial Statement Accounting policies

       1. Compliance with IPSAS and Financial Legislations
          The financial statements are prepared and presented in compliance with the International Public Sector Accounting Standards (IPSAS), the Public Financial Management Act 2016, Act 921 and the Public Financial Management Regulations 2019, L.I 2378.
       2. Accrual Basis of Accounting
          The Assembly, consistent with the IPSAS and the financial legislation, applies accrual basis of accounting to the preparation of the financial statements.
       3. Consumption of Fixed Assets
          The non-current assets are depreciated on straight-line basis as follows:

       Noncurrent assets	Estimated Useful Life
       Furniture and office equipment	5 years
       Medical equipment and accessories	4 years
       Motor vehicles	5 years
       Land & Buildings (land constitutes 30%)	10 years

       During the year, a medical equipment worth GH¢20,000,000 was impaired and written off due to abrupt electricity fluctuations which damaged the equipment.

       4. Inventory valuation
          Two categories of inventory are included in the financial statement. Inventory of drugs is valued at lower of cost and net realizable value and inventory of medical consumable is valued at lower of cost and current replacement cost.
       5. Historical Cost
          Property, plant and equipment is measured at historical cost, which is the original consideration offered in exchange of the assets.
       6. Exchange rate
          The foreign transactions are translated using the closing rate method.