Auditor General finds weaknesses with SERHA procurement process

The Auditor General has found weaknesses in the procurement process of the South East Regional Health Authority (SERHA).
  
The findings are contained in a Performance Audit report tabled in the House of Representatives on Tuesday.
  
The Auditor General's Department conducted the audit against the background of public concerns regarding the quality of health care delivery including shortages of medical supplies and inadequate or non-functioning equipment.

The Auditor General says over the six-year period, 2011 to 2017, the government provided $87.6 billion in budgetary support to SERHA, of which $25.5 billion was allocated for the purchase of goods and services.
  
SERHA also received financial assistance amounting to $1.4 billion from agencies such as CHASE and the National Health Fund, but still had a budgetary shortfall of $31 billion.
  
The Auditor General says for the most part, SERHA adhered to guidelines in carrying out its procurement activities. However, its procurement practices did not always demonstrate that efforts were made to ensure that value for money was obtained.
  
Among the key findings of the Auditor General was the failure of SERHA's Board of Directors to define strategies for regional needs assessment.
  
The audit found that SERHA’s approach towards determining needs was limited to discussions at monthly management meetings and compiling budget requests submitted by hospitals and health departments.
  
Approved budgetary resources were allocated to hospitals and health departments based on their size and the extent of  the services they offer.
  
Additionally, the Auditor General says SERHA did not conduct analysesas part of its procurement management and did not have an efficient system to collate the data.
  
Ensuring that hospitals and health departments purchased supplies at the most economical price was another weakness highlighted.
    
The Auditor General says, in its response to the audit, SERHA indicated that one of its main challenges was the shortage of adequate procurement staffing.
  
The health authority said it tried without success to retain competent and experienced staff.

Recommendations

The Auditor General has made three recommendations for SERHA to immediately consider implementing in order to strengthen the procurement process and get value for money.
  
These include a comprehensive regional needs assessment and strategies for optimal allocation of resources.        
  
The Auditor General says SERHA should also commit to analysing its procurement practices and patterns to ensure that goods and services are acquired at the most economical prices.
 
The Auditor General has also recommended that the Ministry of  Health and SERHA review the current standardisation arrangement for medical equipment, as well as the associated risks to ensure transparency and value for money.