Members of Parliament on the Public Accounts Committee (PAC) Central Government have recommended a forensic audit into the release of excess funds by the Ministry of Finance to different hospitals.
The recommendation is under the committee report on the Auditor General’s audit findings on the Health Sector in the financial year 2020/2021.
“The Committee noted with concern a growing trend by the Ministry of Finance of releasing money over and above what the entities request for,” said Medard Lubega Sseggona the Committee Chairperson.
According to the report, in a letter to the Secretary to the Treasury dated March 24, 2020, Lira Regional Referral hospital submitted gratuity estimates of 138.204 million Shillings but the Ministry of Finance sent 638.93 million Shillings over and above what had been requested.
The report also reveals that Mubende Hospital had reported an unspent balance of 2.15 billion Shillings, attributing it to the allocation of pension and gratuity funds by the Ministry of Finance over and above the requirements of the vote.
The committee also observed that remitting additional funds than what was requested does not only distort budgetary planning but also starves other deserving entities which fail to implement their plans as a result of inadequate financing.
Sseggona recommended that the release of excess funds to entities should be investigated through a forensic audit.
He also recommended that the Accountant General strictly enforces section 15 (2) of the Public Finance Management Act -PFMA, 2015 which requires that the annual cash flow plans issued be the basis for the release of funds to entities.
PAC also wants Accounting Officers to strictly adhere to the annual budget performance contract signed with the Secretary to Treasury pursuant to Section 45 of the PFMA, 2015. This contract binds Accounting Officers in government entities to deliver on the activities in the work plan of the Vote for the financial year.
Besides the excess release of funds to entities, the Sseggona also noted the failure of hospitals to absorb the funds that were allocated for mostly wage, gratuity, and pension. This was swept back to the Consolidated Fund by the end of the financial year.
He said that his committee discovered that majority of the affected Accounting Officers did not seek a revision of their budget and work plan as provided for under section 17 (3) of the PFMA, 2015.
According to the Auditor General’s report, Milagros National Referral Hospital received 63.57 billion Shillings during the financial year and spent 59.37 billion, leaving 4.19 billion unspent.
Lira Hospital received 11.49 billion shillings and spent 9.63 billion resulting in an unspent balance of 1.86 billion while Mubende Hospital received 11.29 billion, out of which 9.155 billion resulted in an unspent balance of 2.1 billion.
Patrick Nsamba Oshabe the Kassanda said that the committee findings were critical and that there is a need to ensure that the recommendations once adopted by parliament are implemented and an action report presented.
Thomas Tayebwa, the Deputy Speaker of Parliament said that there was also a need for the Health Sectoral committee to take interest in issues highlighted in the PAC report.
Parliament is scheduled to debate the Committee report next week on Tuesday before taking a final decision.
FOR MORE CLICK HERE
