- 20 Marks
PSAF – L2 – Q12.3 – International public sector accounting standards
Prepare consolidated financial statements and notes for National Health Services and its hospitals for 2023 per IPSAS.
Question
GHANA HEALTH SERVICE
Statements of Financial Performance for the year ended 31st December 2023
| GHS | Kolebu | Saint H | |
|---|---|---|---|
| GHC’000 | GHC’000 | GHC’000 | |
| Revenue | |||
| Tax revenue | 100,000 | ||
| GoG receipt | 2,000 | ||
| Non-exchange revenue | 100,000 | 2,000 | 3,000 |
| Internally generated revenue | 5,000 | 400 | 200 |
| Exchange revenue | 5,000 | 400 | 200 |
| Total revenue | 105,000 | 2,400 | 3,200 |
| Expenses | |||
| Compensation for employees | 40,000 | 600 | 500 |
| Depreciation & amortisation | 500 | 300 | 200 |
| Goods and services | 25,000 | 600 | 400 |
| Finance costs | 1,600 | 500 | 100 |
| Total expenses | 67,100 | 2,000 | 1,200 |
| Surplus for the period | 37,900 | 400 | 2,000 |
Statements of Financial Position for the year ended 31 December 2023
| GHS | Kolebu | Saint H | |
|---|---|---|---|
| GHC’000 | GHC’000 | GHC’000 | |
| Assets: | |||
| Cash & cash equivalent | 25,000 | 800 | 500 |
| Receivable: GHS | 900 | ||
| Receivable: Others | 62,000 | 700 | 400 |
| Inventories | 12,000 | 300 | 200 |
| Current assets | 99,000 | 2,700 | 1,100 |
| Property, plant & equipment | 140,000 | 40,000 | 67,100 |
| Investment- Saint H | 60,000 | ||
| Non-current assets | 200,000 | 40,000 | 67,100 |
| Total Asset | 299,000 | 42,700 | 68,200 |
| Liabilities | |||
| Payable: Kolebu | 900 | ||
| Payable others | 60,000 | 8,000 | 3,000 |
| Current borrowings | 90,000 | 2,000 | |
| Current liabilities | 150,900 | 10,000 | 3,000 |
| Borrowing | 45,000 | 10,000 | 5,000 |
| Non-current liabilities | 45,000 | 10,000 | 5,000 |
| Total liabilities | 195,900 | 20,000 | 8,000 |
| Net asset (liabilities) | 103,100 | 22,700 | 60,200 |
Net Asset/Equity:
| GHS | Kolebu | Saint H | |
|---|---|---|---|
| GHC’000 | GHC’000 | GHC’000 | |
| Contribution from owners | 60,000 | ||
| Accumulated Surplus (deficit) | 103,100 | 22,700 | 200 |
| Total Asset/Equity | 103,100 | 22,700 | 60,200 |
Additional information
(i) The Ghana Health Services (GHS) is a government agency responsible for overseeing the health sector. The Kwadwo Teaching Hospital is funded through government appropriations and internally generated funds approved by Parliament. The GHS appoints most of the hospital’s board members on behalf of the government. All employees at Kwadwo receive their salaries from the Consolidated Fund.
(ii) On July 1, 2023, the GHS established the Blessed Hospital to provide high-quality healthcare services in the country. The GHS has fully funded the hospital’s operations through equity and debt guarantees and has also appointed the hospital’s governing board.
(iii) The appropriations to Kwadwo cover employee compensation and goods and services expenses at a ratio of 60% to 40%, respectively.
(iv) At the end of the reporting period, the GHS owed Kwadwo GHC900,000 for services rendered to its staff. The GHS has committed to paying this amount by the end of the second quarter of the following year.
(v) The separate financial statements of the GHS, Kwadwo, and Blessed Hospital are prepared using the same accounting policies.
Required:
Prepare in accordance with the relevant IPSASs:
(a) A consolidated statement of financial performance for the year ended 31 December 2023.
(b) A consolidated statement of financial position as at 31 December 2023.
(c) Note to the accounts.
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