- 8 Marks
Question
Below is a Trial Balance of Paja Teaching Hospital (PTH) under the Ministry of Health for the year ended 31 December 2023.
| Debit (GH¢000) | Credit (GH¢000) |
|---|---|
| Cash and Bank – GoG | 3,400 |
| Cash and Bank – IGF | 72,200 |
| Cash and Bank – Donor Funds | 210,400 |
| Undeposited Cash – IGF | 4,000 |
| Petty Cash | 100 |
| Investments | 2,000 |
| Debtors | 661,400 |
| Other Receivables | 17,700 |
| Withholding Tax | |
| Trust Funds | |
| Trade Payables | |
| GoG Subsidy – Employee Compensation | |
| GoG Subsidy – Goods & Services | |
| Development Partners Programmes Receipt | |
| Other Non-Operating Income | |
| Medicines & Pharmaceuticals | 433,900 |
| Surgical | 50,800 |
| Medical | 111,400 |
| Investigation | 140,900 |
| OPD | 238,400 |
| Obstetrics and Gynaecology | 135,300 |
| Dental | 8,300 |
| Pediatrics | 40,300 |
| Ear, Nose & Throat | 5,300 |
| Eye Care | 7,300 |
| Mortuary | 30,000 |
| Ambulance Fees | 300 |
| Ophthalmology | 3,000 |
| Physiotherapy | 3,300 |
| Examination Fees | 200 |
| Dialysis | 400 |
| Feeding | 30,400 |
| Employee Compensation – GoG | 3,912,500 |
| Goods & Services – GoG | 20,800 |
| Employee Compensation – IGF | 148,000 |
| Goods & Services – IGF | 978,500 |
| Capital Expenditure – IGF | 27,500 |
| Goods & Services – Partners Fund | 472,400 |
| Accumulated Fund | |
| Total | 6,530,900 |
Additional Information:
- The hospital previously used modified accrual accounting but switched to IPSAS accrual basis in 2023.
- The hospital revalued legacy assets as follows:
- Motor Vehicles: GH¢50,250,000
- Buildings: GH¢120,540,000
- Medical Equipment & Other Equipment: GH¢31,500,000
- Land: GH¢15,000,000
- Gavi supported the hospital with GH¢200,000,000 in 2023, but 20% was allocated for Q1 of 2024. The Global Fund committed GH¢250,000,000, but only GH¢200,000,000 was received.
- NHIA rejected 10% of the hospital’s total claims of GH¢100,300,000.
- Parliament approved a write-off of GH¢20,225,000 for unpaid hospital services.
- The capital expenditure consists of:
- Medical Equipment: GH¢19,236,000
- Furniture & Fittings: GH¢8,264,000
- Depreciation Policy (Straight-Line Basis):
- Building: 5%
- Motor Vehicle: 20%
- Medical Equipment: 10%
- Furniture & Fitting: 25%
- Year-end inventory values:
| Inventory Type | Cost (GH¢000) | Replacement Cost (GH¢000) | Net Realisable Value (GH¢000) |
|---|---|---|---|
| Medicines (for resale) | 146,800 | 176,100 | 132,100 |
| Medical Consumables (For use on clients) | 29,400 | 33,800 | 30,800 |
| Office Consumables | 19,600 | 29,400 | 18,600 |
Required:
In compliance with IPSAS, the PFM Act, and the Government of Ghana Chart of Accounts, prepare:
a) A Statement of Financial Performance for Paja Teaching Hospital for the year ended 31 December 2023.
Answer
Paja Teaching Hospital
Statement of Financial Performance for the Year Ended 31 December 2023
| Revenue | GH¢000 |
|---|---|
| Government Subvention | 3,934,500 |
| Internally Generated Revenue | 1,230,970 |
| Grants | 571,900 |
| Total Revenue | 5,737,370 |
| Expenditure | GH¢000 |
|---|---|
| Compensation of Employees | 4,060,500 |
| Goods and Services | 1,290,600 |
| Consumption of Fixed Assets | 23,212 |
| Other Expenses (Write-offs) | 20,225 |
| Total Expenditure | (5,394,537) |
| Net Surplus for the Year | 342,833 |
Workings:
- Government Subvention:
- Employee Compensation: GH¢3,912,500
- Goods & Services: GH¢22,000
- Total: GH¢3,934,500
- Internally Generated Revenue:
- Medicines, OPD, Surgical, etc.: GH¢1,230,970
- Adjusted NHIA Claims: (10,030)
- Grants:
- Development Partners Programmes: GH¢561,900
- Deferred Grant (Gavi – 20% deferred): (40,000)
- Outstanding Grant (Global Fund): GH¢50,000
- Compensation of Employees:
- Government Subvention: GH¢3,912,500
- Internally Generated Revenue: GH¢148,000
- Total: GH¢4,060,500
- Goods & Services:
- GoG & IGF: GH¢1,472,400
- Less: Closing Inventory (181,100)
- Total: GH¢1,290,600
- Consumption of Fixed Assets (Depreciation):
- Motor Vehicles: GH¢10,050
- Buildings: GH¢6,027
- Medical Equipment: GH¢3,150
- Furniture & Fittings: GH¢4,985
- Total: GH¢23,212
- Uploader: Salamat Hamid