Financial management and accounting part-iiiPresentation Transcript
Financial Management and Accounting in Health- Part-III Reconciliation, Re appropriation and Inventory Management Nayyar R. Kazmi
Reconciliation is the process of comparing the Account with what you actually have or with an Account Record from another source like Bank records, AG Office Records etc. to make sure that the records are accurate and nothing is missing.
Reconciliation is done usually on quarterly basis
Re-appropriation is the term of reallocating money from one head of expenditure to another head of expenditure. It is usually done when you have savings in one head of expenditure and you want to spend the extra amount in another head of expenditure where you want to do more expenses in the light of your program objectives.
140,000 860,000 1,000,000 TOTAL Still need for 30,000 tablets of Ciprofloxacin 0 600,000 600,000 Drugs Purchases Savings +140,000 260,000 400,000 Stationary Items Comments Difference Net Expenditure till Date Allocated Amount for the Whole Year Head of Account
140,000 860,000 1,000,000 TOTAL Still need for 30,000 tablets of Ciprofloxacin +140,000 600,000 840,000 Drugs Purchases 0 260,000 260,000 Stationary Items Comments Difference Net Expenditure till Date Re-appropriated Amount for the Whole Year Head of Account
While handling Cash, always ensure that Cash must be stored in a secure locker.
A Petty Cash register must be maintained and daily checked for accuracies.
Huge transactions should never be made from Petty Cash
Preferably Petty Cash limits should not exceed the salary of the person who is the custodian of the locker.
Inventory control is the implementation of management’s inventory policies in a manner that assures that the goals of inventory management are met. Wise control of inventory is often a critical factor in the success of businesses in which inventories are significant.
Based on the needs of a Health organization Inventory needed is ordered and procured.
This inventory is inspected and accounted on a Stocks or Inventory Register.
Every item consumed is deleted from the Stocks Register and added to a History Register.
For proper Inventory Management, based on the average inventory needs a proper inventory warehouse is needed.
Issues concerned with security of Warehouse must be sorted out.