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Finance Department

The finance department chiefly has the role of ensuring internal control systems of laid down is operational effective in order to attain organization’s objectives.

MNH – Mloganzila establish goals and objectives and then assess the risks toward achieving those objectives. Because of riskiness of not achieving the goals and objectives it propounded set of policies and procedures to provide management with reasonable assurance that goals and objectives laid down will be met.  Aim of those propounded policies and procedures is to promote operational efficiency and effectiveness, provide reliable financial information, safeguarding assets and records, encourage adherence to prescribed policies and complying with regulatory agencies.

Together with overseeing internal control system it has to ensure Tanzania Public Finance Act, Tanzania Budget Act, Tanzania Procurement Act and other relevant laws relating to use of government monies are adhered to.

The Finance department is responsible for the overall finances of the hospital and is accountable for the accuracy of all financial accounting transactions including Accounts receivable, Accounts payable, and Payroll. The role of financial management can be archived through management of Revenue and Expenditure.

Revenue Unit

IPSAS 9 & IPSAS 23 Revenue outlines the accounting requirements for when to recognize revenue from exchange transactions and revenue from non-exchange transactions. Revenue is measured at the fair value of the consideration received or receivable and recognized when prescribed conditions are met, which depend on the nature of the revenue.

Revenue sources of MNH- Mloganzila is:-

  1. Internally generated revenue (own source collections)
  • Revenue related to principle activities of the organization
  • Revenue from non-principle activity such as rent
  1. Government subvention
  • Other charges
  • Personal Emolument
  • Developmental grant (if any)

Revenue unit setting

The Revenue unit is headed by Revenue Manager – has supervisory role, tracking any changes in collection and preparing revenue report.

Revenue unit as it is confined to revenue collection it has mainly three sections namely; Outpatient billing, Inpatient billing and Credit company claim compilation.

Outpatient billing

There are four (4) revenue collection points. They are located at main entrance, Physiotherapy Department, OPD department and Internal Medicine department. Since the hospital is operating 24 hours a day; collection point adjustment to NMB is used for cash collection during normal working hours, but after normal working hours, weekend and holidays is used for both cash and credit collections. The other three collections points are solely used for credit customers.

Procedures for Collecting Cash Revenue for cash paying clients, requires cash payment to be made through NMB bank counters during normal working hours and NMB agent from 17:00 to 08:00 next day.

The following are procedures for collecting cash revenue:

A patient will go to the billing point where a bill note will be generated in triplicate. The bill note will indicate service name and respective amount to be paid.

Original bill notes and copies will be distributed as follows:

  1. Original to a bank teller
  2. The second copy to a Scrolling Cashier ( a cashier who postpaid bill notes)
  3. Third copy to service provider
  4. Once bill note is generated, the same shall be provided to a patient (original and two copies) who will take them to a bank teller
  5. A bank teller will collect the amount of cash as indicated on the bill note and generate bank payment receipt (original and three copies)
  6. A bank teller will stamp a paid bill note “PAID” and sign on both, bill note and cash payment receipt (bank Pay In Slip)
  7. A bank teller shall retain original cash payment receipt and give a second copy and fourth copy to a patient. The bank teller shall also retain original bill note while second copy shall be given to a patient.
  8. A patient shall retain a second copy of bank payment receipt.
  9. Upon completion of payment procedures at Bank Cash Collection Point, a patient will proceed to the service delivery point and submit a fourth copy of bank payment receipt and third copy of bill note to a service provider.


    Inpatient billing

    The finance department appointed designated office at floor six (6) purposely for inpatient billing ie. Inpatient bill generation.  A designated cashier has to ensure patients or relatives are posted with their bill position and take appropriate actions to ensure that bills are settled in time.

    Billing and Credit Control Function

    The Hospital offers services both on cash and credit basis. Credit clients are provided            30 days, from bill dispatch date, to settle their bills. The billing section is responsible to ensure that services provided to credit clients are completely captured; bills are timely prepared and dispatched to respective credit clients by 15th of the following month.

    The billing and credit control sub section is responsible for ensuring that credit terms       and conditions are adhered to.

    Procedures for Accessing Credit Facility

    The Hospital has an arrangement in which corporate bodies and insurance Companies are offered medical services on credit basis. Service is provided on credit basis to patient once a contract for services is entered between corporate bodies, insurance companies and the Hospital. Potential credit clients are required to follow the following procedures in accessing credit facility:

  10. Submit an application letter addressed to the Executive Director. The letter should be accompanied by the following documents:
    • Institution/ Company profile
    • Institution/Company operating registration and license
    • Audited financial statements for the latest three years
  11. On receipt of the above stated documents, the Hospital Credit Committee shall evaluate the applicant to determine its credit worthiness
  12. Once it is established that, a potential credit client meets all set criteria, an acceptance letter accompanied by a standard contract shall be sent to the applicant.
  13. Once both parties are satisfied with terms and conditions of a contract for provision of services, the contract will be signed. Thereafter the contract will start to be executed by both parties.
  14. The Expenditure and Payment unit is responsible for ensuring that the Hospital incurs expenditure in accordance with Public Financial Act of 2004 and Public Procurement Act of 2013 as well as MNH Financial Regulations. Furthermore, the unit is obliged to ensure that claims due to staff, suppliers, and other creditors are made within a reasonable period of time to enable the Hospital to operate as effectively and efficiently as possible.

    The Expenditure and Payment Unit is headed by Expenditure Accountant who is responsible for ensuring that all activities which the Unit is mandated to perform, are carried out in an efficient and effective manner and according to approved operating standards.

    The following are the procedure adhered to facilitate payment procedure

  15. Design strong internal controls over payment processing system and monitor its implementation,
  16. Develop and advise strategies to reduce and effectively manage expenditure,
  17. Design and implement mechanisms to ensure that all payments to imprest holders are properly and fully accounted within 14 days from the date of completion of activity for which payment was made,
  18. Ensure that liabilities which are due, are settled on time to build and maintain a constructive working relationship with suppliers, employees, business partners and other stakeholders,
  19. Ensure that liabilities which are due are settled on time to avoid unnecessary penalties due to late payment,
  20. Ensure that payments are made for only approved claims,
  21. Prepare reliable, relevant and complete reports on a weekly, monthly and quarterly basis to assist management in making informed decisions,
  22. Facilitate and assist external and internal auditors to perform audit assignments by providing required data, information and explanations,
  23. Prepare and submit written responses to audit findings,
  24. Implement and closely follow up to ensure that auditors’ recommendations are timely and consistently implemented, and
  25. Prepare statutory financial statements in accordance with International Financial Reporting Standards.
  26. Expenditure Unit


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