KARACHI: Procedure for use of funds by medical colleges
KARACHI, Sept 10: The Sindh health department has notified the standard operating procedure (SOP) for the use of non- government funds, including the self-financing scheme, for the public sector medical colleges in the province.
The SOP has been issued with the approval of the governor of Sindh and shall come into force with immediate effect.
Its objectives are: To limit the authority of the principal/DDO to spend the non-government funds, restrict the number of authorized bank accounts to a controllable number for proper accounting purposes, assign budget heads in conformity with the annual Sindh budget, and to ensure standard budget and accounting in all medical colleges.
Fund Management Committee (FMC): The composition of the committee is as follows: principal of medical college/ vice-chancellor - chairman; medical superintendent of the concerned hospital - member; one professor of basic sciences, on annual rotation basis nominated by the academic council - member; finance manager, a non-government employee, member; accounting and finance in-charge, with the specific fund management job description to be hired from the said fund; vice-principal of medical college/registrar of LUMHS - member/secretary procedure.
The meeting of the committee shall be held on a monthly basis wherein there shall be a seven-day notice, a fixed agenda and presentation of monthly cost and financial accounts by the finance manager.
The quorum for the meeting shall be at least 2/3rd of its members and decisions shall be taken by a majority vote.
All decisions shall be recorded in a minutes book, which shall be the permanent record to be maintained by the secretary of the committee. The non-government funds’ finance manager will be the treasurer of the committee and will prepare and maintain budget and books of accounts. The principal/DDO will be the officer-in-charge of the funds and chairman of the FMC. He will ensure proper maintenance of books of accounts in accordance with the accounting standards, besides ensuring financial discipline.
FUNCTIONS: To prepare annual budget of the funds for approval of the administrative department and to maintain books of accounts of the non-government funds. The FMC shall be responsible for the judicious utilization of the fund. This fund is earmarked for quality medical education that shall include improvement and upgraduation of the relevant facilities at the attached teaching hospitals.
To ensure financial discipline and an independent annual audit of the funds and formulate educational development schemes. To technically evaluate the purchase/import of any equipment and to make a physical verification and quantitative survey of any construction/ maintenance projects.
Distribution of funds: Fifty per cent of the annual collection will be placed on a term/fixed deposit with a scheduled bank or invested in a government investment scheme. This amount will not be available for the annual expenditure budget without approval of the administrative department.
These funds will gradually build up for the creation of endowment funds for the institutions. All foreign currency funds will be placed in term/fixed deposits and will only be available for the annual expenditure budget with the approval of the administrative department. Forty per cent of the annual collection will be advanced to the attached teaching hospitals. However, the Sindh Medical College will advance 40% of the annual collection for utilization at the Lyari General Hospital. This arrangement is for the period of three years to improve health facilities at teaching hospitals.
However, after three years, twenty-four per cent of the annual collection will be advanced to the attached hospitals. The respective hospitals will provide to the colleges the utilization details of the financial year. One per cent of the annual collection will be provided to the health department for the following purposes: holding seminars, meetings, purchase/maintenance of computers, printers and stationery, purchase/maintenance of office equipment, furniture etc.
The non-government funds shall only be utilized when the funds from the regular annual budget are not available.
The principal shall ensure the execution of the FMC decisions. The health department may at any time suspend the usage and operation of the funds at any college. No un-funded liabilities shall be projected in any college scheme relating to the non-government funds.
Financial year for accounting of the fund will be from July 1 to June 30.
Bank accounts: From July 1, 2002, each medical college will maintain the following three bank accounts, with prior approval of the secretary of administrative department with the exception of the bank accounts held by the college in which cheques are received from the treasury/AG and disbursements made for salaries and contingencies:
Non-government US dollar account (where applicable), non- government rupee account, PLS saving account (to receive non- government fund).
Non-government current account (to make payment from the non- government fund).
Budgeted expenditures: Expenditures for which the budgeted amounts are approved by the administrative department: principal and vice-principal - un-limited.—APP
