Financial audit underway at public health

In a bid to run the Public Health Department on a clear note, the healthcare corporation is now seeking a financial audit that will determine the starting balance for the organization.

Corporation board chair Joaquin Torres and chief executive officer Juan N. Babauta told Saipan Tribune yesterday that they have already met with the Office of the Public Auditor and had sought the assistance of private auditing firm Delloitte & Touche for the task.

“We would like to see the starting point for this corporation and we need to know our beginning balance. Once this audit is completed, we will know what we owed before and what we’re facing after. Our intention is to bring this audit to the authorities up there, negotiate and decide [on the extent of] the corporation’s obligation,” said Babauta.

The healthcare corporation took over nearly all functions of the Department of Public Health on Oct. 1, 2011.

Torres said there are questions that need to be answered such as who will pay for unpaid bills owed past vendors. “These are all not clear at present. And even if we acknowledge those obligations, the money is just not there,” he added.

The two said that the corporation will first establish a balanced budget, which is expected to be completed within the week.

Torres disclosed that the corporation is looking at a $25-million budget for this fiscal year, including the $5 million seed money appropriated under the corporation law.

“We want to set up a balanced budget…[which means] we need to spend only what is within the available resources. Anything beyond $25 million, we have to trim down,” said Torres.

Babauta revealed that many vendors have not been paid for some three to four years.

Babauta also disclosed that the hospital’s uncollectibles now stand at $52 million but he is optimistic that putting a financial system in place will help collect these monies. Receivables pile up mainly due to the untimely issuance and delivery of medical billings to patients and clients.

A private company staff earlier told Saipan Tribune that they only received last month the bill for one of their employees who was admitted to the hospital in 2006.

Babauta said the corporation is working on developing a financial system that will be integrated with other key hospital areas such as the automated medical records and billing.

The lack of enough number of people for these sections also hampers the efficient delivery of services. Babauta and Torres said the corporation will either hire or transfer personnel from within the department to the billing, medical record, and collection areas.