IMPROVING CORPORATE GOVERNANCE

THROUGH EFFECTIVE INTERNAL

ADMINISTRATIVE CONTROLS

BY:
MR. GODWIN PONGO
DEPUTY DIRECTOR (ADMIN.)

PRESENTATION OUTLINE
Definition of Corporate Governance
Principles Underlying Corporate Governance
Internal Controls defined
Mission of HASS vrs Internal Controls
Thematic areas under HASS and its internal
control systems

CORPORATE GOVERNANCE
DEFINED
Set of systems, principles and
processes by which an organisation
is directed or controlled.
The structure provides the
guidelines as to how the company
can be directed or controlled such
that it can fulfill its mandate/ goals
and objectives in a manner that adds
to the value of the company.

Principles Underlying
Corporate Governance
Corporate governance (CG)is based on
principles of integrity and fairness,
transparency with regards to all
transactions, making all the necessary
disclosures, complying with all laws of
the land, being accountable and
responsible towards the stakeholders
and commitment to conducting
business in an ethical manner.

INTERNAL CONTROLS (IC) IN

CORPORATE GOVERNANCE
Internal Controls defined:
They are a set of instructions,
guidelines, policies, procedures,
practices, rules and regulations
designed to implement a system
of checks and balances within
an organization

Internal Controls (ICs) Cont.

They are vital parts of corporate
governance as they can reduce, minimize
or eliminate opportunity for theft fraud,
corruption, mishandling of assets ,
collusion, operating losses of technology,
failure, negligence, carelessness, legal
fines etc
Controls ensure that we are focused and
work towards the achievement of the
organisational goals/mandate

Mission of HASS
To provide effective and efficient
administrative and support services in
the areas of Transport, Health Estate,
Clinical Engineering, Procurement,
Stores and Supplies, Human Resource
and General Administration to promote
health service delivery.

Mission of HASS vrs Internal

Controls [I.Cs]
The attainment of the mission of
HASS shall be a mirage if internal
controls are not employed in the
pursuit of our functions, under all the
thematic areas namely; Human
Resource, General Administration,
Estate, Stores and Supply, Clinical
Engineering, Procurement and
Transport.

GENERAL ADMINISTRATION/ICs
1. Registry Practices [Mgt of
Correspondence]: The following
internal control systems must be
operated at the Registry:
Letters Receipt Register: all incoming
official letters must be date-stamped
and recorded into this Register.

Internal Controls at the Registry

cont.
Letters Dispatched Register; all outgoing
official letters must be recorded in this
ledger, indicating the date and time of
dispatch among others.
Messenger Receipt Book; for dispatching
critical/controversial letters ; e.g queries,
legal or contentious letters.
All correspondences must be placed on
appropriate files and the files must be
under lock and key.

Internal Controls at the Registry

cont.
The titles [names] and numbers of all
Files must be recorded in a File
Index Book for easy location and
retrieval of files from the storage
device.
Copies of all outgoing letters must be
placed in a Float File for easy
reference and monitoring.

Registry Practices/Internal
Controls
Official Stamp of Head of BMC must be handled
by a responsible officer and must always be
under lock and key.
Signing of official documents: All document
meant for the signature of the Head of BMC
should be scrutinized critically with respect to :
date, time, figures, words, grammatical
construction before being signed.
All Attachments should be equally signed or
initialed to avoid a possible replacement/shortchanging

Reception & Telephone

Exchange/ICs
Visitors Logbook/register
Telephone Exchange Room must always
be under lock and key
Ledger for recording all outgoing calls
Regular training of Receptionists/
Telephonists on use of telephone
equipment

Human Resource
Management/I.Cs
Keeping and enforcing the patronage of
Staff Attendance Registers to help
monitor punctuality and regularity of staff
to work.
Keeping and encouraging the use of
Accident/Incident Logbook at all units.
Officers proceeding on leave [all kinds of
leave] must sign the Leave Ledger on
departure and upon resumption from
leave.

HR Management/I.Cs
Officers proceeding on approved Leave of
Absence, Annual Leave, compulsory/voluntary
retirement, Study Leave with/without pay must
hand over properly to an authorized person.
Handing over-[staff running shift] .
All newly appointed staff should be given proper
orientation about the Service, its Structural
Arrangements, Culture, Values, Code of
Conduct, Rewards and Motivational Schemes,
etc.

HR Management/I.Cs
Regular Staff Durbars should be organized
by Management to interact with, and
explain policies to staff
Continuous and persistent interpretation
and explanation of all policies on HR
[ Appts, Promotions, Postings etc] to staff
Creation and maintenance of an accurate
regular database [both manual and
electronic] on staff to guide in effective HR
management decision making

HR Management/I.Cs
Organizing periodic capacity building
workshops for all staff
Proper documentation of all matters
relating to staff [e.g disciplinary
actions, commendations etc]
Keeping and utilization of
Performance Monitoring Logbook on
all staff

Supply Chain Mgt./I.Cs

Quality health service delivery can
never be achieved without the
availability of the required medicines,
non-medicine consumable and other
logistics at the service delivery points.
This must be done prudently to
eliminate wastage from the system.
There must therefore be internal
controls at all levels of service delivery
to ensure cost efficiency.

Supply Chain Mgt/I.Cs

There must be a functional Procurement
Committee at all service delivery points
All stakeholders in the procurement
cycle must be involved in the process.
Procurement decisions must be
properly documented, signed and filed
There must be an approved
procurement plan; and this must guide
all procurements at the BMC

Supply Chain Mgt/I.Cs

Procurement function should be
separated from storage , distribution
and payment [ e.g storekeeper must
not double as procurement officer].
Regular stocktaking to be
encouraged[ statutory requirement,
reconcile issues against deliveries,
damage/expiry items identified]
Inspection of materials after
procurement and inspection reports
issued before payment

Supply Chain Mgt/I.Cs

There must be properly signed
requisitions by the designated
authorised officers before items are
issued from stores.
All stores must have unserviceable
items ledger to register all
unserviceable items.
Regular unannounced supervisory
visits to the stores are highly
encouraged.

Transport, Estate & Equipment

Mgt. /Internal Controls
Planned Preventive Maintenance [PPM]; key
to the sustainability of the Services
infrastructure [transport,all
equipment,buildings,plants etc] for
uninterrupted service delivery.
All works /repairs must be requested for
and authorized by the appropriate officer.
Servicing agreements to be entered into
where local/in-house capacity is not
available.

Transport, Estate & Equipment

Mgt. /Internal Controls
Vehicle Request Form must always be used.
Unauthorised persons must not drive nor
use the Services vehicles.
Unserviceable items disposal certificate to
be signed after disposal by the Head of
BMC preferably.
Coding/Embossment of assets and
properties[private properties not to be
mingled with the Services property]

Transport, Estate & Equipment

Mgt. /Internal Controls
Works completion certificate must always be the
authority for payment.
Adherence to policies and procedures regarding
staff accommodation[formal
allocation,rent,responsibilities etc.
All unserviceable items declared must be
properly documented and sent to the stores for
safe keeping.
Disposal of unserviceable/expired items should follow
laid down procedures with all the necessary checks
and balances.[involvement of relevant agencies ].

Other Managerial and

Admin. Internal Controls
[ICs]
Statutory/Operational Committees must be

operational at every BMC i.e. District/Hospital

Management Committee, Disciplinary
Committee, Procurement and Material
Inspection Committees, QAC, DTC etc. Minutes
of meetings of the Committees should be
produced signed and properly filed.
Organisational structure indicating
reporting/communication relationships should
be clearly displayed and respected to ensure
discipline and orderly behaviour. [Anything short
of this would not promote good governance]

Other Managerial and Admin.

Internal Controls [ICs]
Open Days: A very good platform to
interact with the public/stakeholders
to showcase achievements,
challenges, operational procedures,
etc.

Conclusion
In conclusion internal control systems should
be effectively employed to reduce waste,
fraud, corruption and ultimately improve
governance.
For us, as a Service to achieve our ultimate
goal of providing quality health care, good
corporate governance practices must be
visible in all health facilities. Effective and
efficient Internal Control systems are therefore
indispensable in the attainment of
organisational goals.

THANK YOU FOR YOUR

ATTENTION