AI en Translation, Pages 26-50
Page 26
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Debts owed by the hospital and the balance of credit accounts
Received in advance from the trustee of Rifqa Foyish endowments for the year 1945 / 1946 - 240/- Dinars
I have not seen any letter from the aforementioned trustee confirming this balance. Nor are there any other
notes in another part of this report regarding the accounts of these endowments.
Received in advance for the guarantee of dates and pits for the year 1945 / 1946 - 120/- Dinars
I have reviewed a copy of the contract concluded between the President and the lessee for the guarantee of dates and pits
for an amount of 120/- Dinars for a period of two years ending on September 20, 1946. Half of this amount
was recorded as revenue in the accounts of the year under discussion, and the other half was carried forward to the next year.
Miscellaneous Liabilities - 2611.056 Dinars - Table No. 1
This table contains amounts for claims against the hospital that were not settled and should have been settled
on September 20, 1945. These are as follows:-
Revenues of Dr. Kamal Al-Samarrai - 68.500 Dinars
This amount represents the revenues collected from consultations and operations by Dr. Kamal for the period
from September 18 to September 20. His entitlement from this amount is 14.400 Dinars only,
and the remainder is considered revenue for the hospital. The necessary settlement for this was made in October 1945.
In addition, the salary entitlement of the aforementioned doctor for the period from September 18 to
September 20 on the basis of 25/- Dinars per month (like Dr. Toka's salary) was not recorded as a claim for him
on September 20, 1945 (this entry was made in November 1945). In this regard,
it was noted that, contrary to custom, there is no decision from the committee to employ the aforementioned doctor.
Revenues of Dr. Koji Rabie - 49/- Dinars
Dr. Rabie's entitlement is 50% of this amount, and the remainder is considered revenue for the hospital.
The necessary settlement for this was made in October 1945. There is another claim for Dr.
Rabie under "Salary Liabilities" in the amount of 15.000 Fils. This amount should have been recorded
initially in the "Revenues of Dr. Rabie" account, and this entry was also settled in October 1945.
In addition, an amount of 12.000 Dinars was recorded to Dr. Rabie's account in November 1945
for his salaries for the period from 8/1/45 to 9/15/45 (as an acting doctor's salary),
and this amount should have been recorded on September 20, 1945.
Continuation of Liabilities
- 2 -
Dr. Kamal Al-Samarrai
A - The hospital administration was verbally notified by the committee that Dr. Kamal Al-Samarrai
would perform the duties of Dr. Toukatli during her absence on her regular leave, without mentioning
the terms of his employment. It has been found that the revenues due to him through Dr. Toukatli are suspended,
and no salary was recorded for him other than his additional working period, nor was the account credited by recording
the doctor's share of the revenues as well as the salary on the same basis followed with
Dr. Toukatli. From this, it appears that the accountant was unable to perform a settlement entry for the amount
⟦...⟧ considering the doctor and distributing it between the hospital and the doctor at the end of September at a time when
he did not have any decision or instruction from the committee.
B - The delay in making a decision in this regard led to a return to the committee ⟦...⟧
A - If the settlement of accounts that usually takes place at the end of each month had been completed,
then why did it leave the accounting in a formal manner, and why did this
amount remain suspended in the account of ⟦...⟧?
B - However, we found that the decision of the Collection Council even during this
period was caused by the delay in making the aforementioned decision for a period of
eight months?
Dr. Rubi Rabi'
The delay in recording the salaries of Dr. Rubi Rabi' and the amount of his share of his revenues until October 1945 is resulting
from the same reasons specific to Dr. Kamal Al-Samarrai.
As for the amount of 10 Dinars, its entry under salary liabilities was correct,
as this amount represents Dr. Rabi's share from the admission of a patient, Baligh, why?
amounting to 10 Dinars, and as for the other half Dinar, it was recorded in the doctor's personal account under the section of
salary liabilities as well, which is the entitlement spent by the doctor as stated in the committee's decision dated 3/5/1945.
From this, it appears that the amount of 10.5 in the return at the end of September 1945 for Dr. Rabi's account under salary liabilities is correct,
and it cannot be recorded in the doctor's revenue account because in this case (i.e., when recording it in the doctor's revenue account) it would establish
a half-and-half split between the hospital and the doctor at a time when the hospital has no share of this amount, noting that no
settlement was made for this entry in October 1945, but rather it was paid to him with the rest of his claims.
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Continued Miscellaneous Receivables
Jacob Hai - 9/- Dinars
This amount was not a claim against ⟦the aforementioned⟧ on September 20, 1945, as it was due from him
as rent for one of the endowed houses in the hospital's name (it was apparently a case in the courts) and
this amount was settled in the year 1945/1946.
Other Receivables
I have seen confirmation or verified the correctness of all other accounts, except for the following accounts
for which it is usually difficult, according to the accountant's statement, to obtain written confirmation from their owners:-
Yusuf Haqqi Ibn Abu al-Halib | 652.285 | Dinars
Mershi Ibrahim Abu al-Thalj | 297.620 | "
Haqqi Sahyun, Abu al-Raqqi | 148.950 | "
Mershi Haqqi - Baker | 764.425 | "
Note that these amounts are still accumulated until now and are increasing. (It was noted that
a portion of these amounts was paid recently)
Miscellaneous Salary Receivables - 1778.227 Dinars, Table No. 2
Dr. Najib al-Yaqubi - 8.900/- Dinars
In addition to this amount, Dr. Najib was entitled to salaries for a period of 22 days in September 1945
amounting to 22/- Dinars, which were credited to him in October 1945.
Confirmation of Doctors' Accounts
I have not seen confirmation from the doctors whose names follow regarding their account balances, and it appears from the
relevant records that no settlement of these accounts has taken place for years. Therefore, I suggest that
a monthly copy of the account be presented to each of the aforementioned doctors, showing the carried-forward balance
at the beginning of the month, the monthly salary, the doctor's share of consultations or operations etc.,
the balance (after deducting their withdrawals etc.) carried forward to the next month, and that they be asked to sign
a second copy of these accounts to be kept by the accountant:-
Dr. Balayan | 82.887
Sostern | 652
Strauss | ⟦illegible⟧
Dr. Toka | 135
Dr. Deutschman | ⟦illegible⟧
⟦illegible⟧
That keeping large sums owed by the hospital belonging to individuals
"wealth" is a strange matter! And did he give undertakings, written or oral,
to return them upon meeting their requests? Moreover, I see that keeping these
accounts as "hospital insurance" is an undesirable matter and therefore
"grants" must be paid instead of the applicants at least. These observations
also include another paragraph of Table No. 1 (245/95) request of Ibrahim Yusuf Al-Suwaij
Other liabilities
The existence of sums owed by the hospital is due to the lack of necessary money to pay them
The head of the committee mentions that their departments did not submit their undertakings even though the financial conditions would not have helped to
apply the account with these applicants monthly and no agreement has been made now or an agreement in this regard with
the concerned parties.
Irregular account!
Dr. Nabih Al-Nabuwa? - He has not previously requested to write off the reasons shown in the previous case
with Dr. Kamal Al-Samarrai and Dr. Yuri Rabie.
I support the auditor's proposal in this regard and I hope to request the accountant
to do so monthly immediately, especially since some doctors have previously
personally asked me to submit such lists in their account advances with the hospital
Confirmation of doctors' accounts
Despite the lack of written confirmation from the doctors of their account balances, the
application of these accounts with them was and still is carried out monthly.
Page 28
Estate of the late Raphael Haroun Kabbay - 8900/- Dinars
1- This is the net amount that the hospital received from the original estate mentioned above, which
amounted in total to 14900/- Dinars for the hospital. This amount remained suspended in the account under
this heading. Since there is no reserve cash for spending against this balance, I see
it appropriate that a decision be taken by the committee on how to dispose of this account.
Assets
1- Cash on hand in the fund as of September 30, 1945 - 54.724 Dinars
I did not count the fund's assets on September 30, 1945, but I did so on
May 2, 1946, and found the assets to be consistent with the cash book on the mentioned date.
2- Assets of stores and pharmacies - 5700.027 Dinars - Table No. 2 -
Mir Elias Hospital owns the following records regarding its store assets:-
General Store Records
Record of food, fuel, soap, porcelain, furniture, etc.
Record of surgical instruments
For medicines
Pharmacy Records
General record - for incoming from the general store and some directly from the markets,
as well as the total outgoing from it
Sub-record - shows details of daily expenditures (transferred daily to the general record)
Daily Supply Store
General record - for incoming and outgoing
Sub-record - shows details of daily expenditures (transferred daily to the general record)
The Kitchen - there is no record in it showing incoming and outgoing
I have examined the detailed lists of the assets of Mir Elias Hospital stores as of September 30, 1945
from the relevant records and verified the accuracy of the calculation of important materials and their costs. Attached herewith
is a table showing a summary of the mentioned lists, certified by the Director of Hospital Administration.
On this occasion, I would like to point out that the incoming and outgoing transactions are massive and branched out regarding
the general store and its annexes, etc. It is not unlikely that the two clerks performing this task
face great difficulty in completing and controlling the entries due to the volume of their regular work.
I request the accountant to be asked to provide a detailed account showing when and how
this amount was spent and how it was disposed of from the relevant dates?
8900 The amount deposited in the bank on 24/3/944
Statement of Payments | Fils | Dinar | Date
Check No. 41 to the doctors on account of their salaries | 812 | 1542 | 24/3/944
To ⟦illegible⟧ company, price of a book for purchasing surgical tools | 120 | | 24/3/944
Check to the order of the Head of the Community, price for purchasing a piece of land for the new cemetery | 502 | | 27/3/944
To Asia Company, under the account of medicine purchases | 281 | 106 | 5/8/944
Opening credit to agents in New York for the account of purchasing surgical tools | 065 | 282 | 1/11/944
Cash to the hospital fund | 250 | | 21/1/944
" | 200 | | 1/2/944
" | 620 | | 12/2/944
" | 260 | | 16/4/944
" | 160 | | 25/4/944
" | 740 | | 8/3/44
" | 400 | | 9/4/44
" | 400 | | 5/4/44
Purchase of medicines from ⟦illegible⟧ company | 675 | 110 | 1/5/944
Cash to the hospital fund | 240 | | 10/5/944
" | 150 | | 19/5/944
" | 520 | | 11/5/944
" | 525 | | 12/5/44
Opening credit to Asia Company for the price of a quantity of medicines | 200 | 316 | 15/5/44
Bank fee for extending credit for A.S. Aloe Co. in New York | 144 | 6 | 16/5/44
Telegram fees to inform " " of the credit extension | 250 | 2 | 18/5/44
Check in the name of Mr. Munir Dangoor | 150 | | 21/5/44
Cash to the hospital fund | 250 | | 22/5/44
Telegrams regarding credit for A.S. Aloe Co. ⟦illegible⟧ | 810 | | 8/9/44
Telegram fees and currency value difference in the credit opening transaction invoice | 976 | 15 | 5/10/44
Account settlement difference | 005 | | 1/11/44
Cash to the hospital fund | 173 | | 19/12/44
" | 100 | | 4/1/45
" | 110 | | 20/1/45
Commission for a transfer check to B. L. Asia | 1520 | | 20/1/45
Opening credit via Gulf Watch to Swastic Oil Company in India | 788 | 68 | 22/1/45
Telegram fees regarding credit extension No. 979 dated 16/4/45 | 253 | 1 | 26/4/45
Commission " " No. 93520 | 591 | | 26/4/45
4944.409 Total
4944.409 Dinars, the remaining balance in the bank as of 25/4/45 until night
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its specific documents and correctly controlling the inventory, and therefore, considering that there must
be slight differences in small items, I have sufficed with verifying the important items in this warehouse.
I have agreed with the head of the committee and the administrative manager on the necessity of assisting the two clerks performing the work
by adding a capable clerk dedicated to maintaining the primary records and auditing the sub-records of the pharmacy,
the daily supply warehouse, and the kitchen, given that the current situation does not ensure continuous auditing and observation
of the various warehouse assets.
2- Debts owed to the hospital and their balances, Debit Accounts - Table No. 4
The Honorable Physical Council - 2251 Dinars.
This amount represents what was outstanding from the Physical Council on September 20, 1945, regarding the remainder of its allocations
for hospitals, and this amount was settled by paying the balance for the year 1945.
Miscellaneous Receivables - 1512.729
I have carefully audited all the accounts shown in the attached table, and taking into account the following observations,
I have verified that all amounts outstanding as of September 20, 1945, have all been collected or are
collectible:-
Saleh Qahtan - 19.185 Dinars. This amount was and still is outstanding since
the year 1925.
Munawwa' Zubaida - 25.500 Dinars
This amount was outstanding since the month of February 1944, and the President informed me that there is a request
from the addressee regarding the supply of patrols to the hospital, and the necessary ⟦settlement⟧ will be made regarding that
at the present time.
Yousef Lawi - 25.428 Dinars
This amount has been outstanding since May 1944, and I have learned that the addressee
is an accountant in the Jewish community.
Hubba Saleh - 1.500 Dinars
It became clear to me that this amount is uncollectible, and it belongs to remaining fees for the year 1942,
and in this case, it is preferable to strike it from the books.
⟦illegible⟧
⟦I support⟧ what was stated in this paragraph regarding the existence of an additional full ⟦image⟧
And ⟦enclosed⟧ the administration manager must strive to obtain a proper diagnosis
⟦illegible⟧
The delay of such annual controls for a long time is incorrect
And irregular, and it should have been ⟦upon liquidation⟧ ⟦...⟧ and I suggest to
The committee accountant ⟦...⟧
The delay of these entries in the records for a long time was with the knowledge and desire of the President ⟦hoping⟧
To collect them from them, and they have been settled in the following manner:
Saleh Qattan 19,185 Dinars - This amount is still suspended in the liability of the aforementioned by order of the President
Shua' Zubaida 5,000 Dinars - This amount represents the total bill of the patient Munira Youssef Shahara
It was recorded against Mr. Shua' Zubaida at the time at the request of the aforementioned, as the hospital had purchased from him
Bathroom tools for the premium department at that time, and when he was not paid by the President, this amount was recorded
Meaning 5,000 Dinars as a ⟦write-off⟧ for him by order of the President as well, and the account was closed.
Youssef Lawi 25,428 Dinars - This amount was written off according to the committee's decision dated ⟦...⟧
⟦...⟧ 1,000 Dinars - This amount was written off ⟦...⟧
⟦illegible⟧
Page 30
I did not see any justification for the accountant to keep this amount suspended for
years, and he should have taken all possible measures to carry out
its settlement as quickly as possible.
Messrs. A.S. Alocompany in New York
We have sent and are still sending several memos to the mentioned company
to provide us with a copy of the account so that the liquidation can be carried out accordingly, but we have not received an answer
from them in this regard, despite the fact that we are still dealing with them and have received several letters from them
relating to our current claims from them, and we sent them another memo in this regard on
22 / 12 / 946.
Regarding the advance of Dr. Alfred Strauss ⟦...⟧
Dr. Alfred Strauss managed the business of Dr. Shwat ⟦...⟧
from 16 / 8 / 945 until 1 / 5 / 946, and the President at that time instructed to open an account for the mentioned doctor
so that Dr. Strauss could receive or pay, and since no decision was taken by the committee in
this regard at the time, the accountant neglected to record the mentioned amount as a claim against the mentioned doctor
and the final settlement was made upon receiving a decision from the committee in this regard.
And why did the debt remain as a claim against the doctor instead of recording it as salaries under
Salaries?
What is the method followed now to preserve the hospital's rights in case
it advances some amounts of this kind?
Uncollectible amounts - ⟦...⟧
⟦...⟧
⟦...⟧ 9.215 Dinars ⟦...⟧
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Account of Revenues and Expenditures for the year ending September 30, 1945
General note on the revenues of Meir Elias Hospital
I have conducted a thorough audit of all revenues of Meir Elias Hospital, and taking into account the
observations mentioned in this report regarding revenues (before and after this), I have verified that all revenues have
been recorded in the accounts according to various receipts and according to their respective primary registers.
Church Revenues - 4091.250 Dinars
The details of this amount are as follows:
Half of the net church revenues for the year ending
on September 30, 1945, according to the inspection lists. { 4007.500 Dinars
Add the amount paid via inspection to the Rabbinate 4.250
4007.750 Dinars
Add revenues of the kindergarten attached by the hospital 83.500
4091.250 Dinars
I have not seen a confirmation from the esteemed Lay Council or from the Rabbinate regarding the accuracy of the revenues, and it
is necessary for the hospital to check from time to time for confirmation of the accuracy of the total revenues.
The amount of 4007.500 Dinars represents half of the net revenues (i.e., after deducting 50% of them
for inspection), which is what confirmation of its accuracy should have been obtained for.
External Endowments - 160.218 Dinars
The details of this amount according to letters received from R.M. Sassoon, the trustee of these
endowments in Calcutta, are as follows:-
Anna - Rupee
1- The hospital's share from the endowment of the estate of the late
J.A. Solomon for the year ending 12/31/44 { 1902,6,2
2- The hospital's share from the endowment of the estate of the late
Mrs R. Belilios for the year ending 12/31/44 { 240
2142,6,2 Rupees
Net revenue after conversion at 74.750 Fils per Rupee 160.218 Dinars
In this regard, I suggest that these endowments be recorded in a special register to enable the department to follow them up
regarding their entitlements (see Rebecca Meir Elias endowments)
Page 34
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Supporting the endowment of these two houses in the name of Meir Elias Hospital and entrusting their management to the Israeli Hospital Committee,
as well as the endowment of an amount of 2,000.000 Dinars for their renovation and furnishing.
The President explained to me that the Committee has not received these two houses yet because they are occupied
under lease contracts, and added that the endowed amount of 2,000.000 Dinars plus
the rental income are still under the care of the esteemed Lay Council.
4 - It is noted that the rent for the house numbered 94/40 Abbas Effendi was not recorded for the year under review.
The rent was previously 120.000 Dinars annually, and the accountant explained to me that the case of
this house was and still is under litigation, and an amount of 12.500 Dinars was obtained
for the year under review and recorded in the 1945/46 accounts according to a receipt in the amount of
12.000 Dinars annually. (See notes at Yaqub Hay, page 4)
5 - It was noted that in the case of lease contracts for more than one year, the total rents are recorded
as revenue in the year they end. For example, Khan Abboud and a shop in Karrada -
leased on 1/1/1944 for a period of two years for an amount of 520.000 Dinars and recorded as revenue
for the year ending 31/12/1944.
(Shop)
Similarly, house 94/406 was leased for two and a half years at a rent of 220.000 Dinars
on 1/1/1942 and recorded as revenue for the same year.
On this occasion, I would like to state that it is necessary to distribute revenues (especially if
the amounts received are significant enough to affect the budget) over the years to which they belong.
In the case of the lease of the Khan and the house in Karrada mentioned above, besides the fact that the years 44/45
and 45/46 were deprived of revenue, the records show that during the year 45/46 a refund
of 5.000 Dinars was paid and recorded as an expenditure against revenue.
Guarantee of Roses and Myrtles - 200.000 Dinars
I have reviewed an agreement for the guarantee of roses, myrtles, and ⟦toilets⟧ between the Committee President and the guarantors
for a period of two years starting from July 1, 1944, until June 30, 1946, for an amount of 600.000 Dinars.
Half of this amount was recorded as revenue after deducting expenses, i.e., 297.500 Dinars
for the year ending 31/12/1944, and the other half was recorded as revenue for the year under review.
It is clear from this that an amount of 150.000 Dinars belongs to the revenues of the year 1945/46
(i.e., for the period from October 1, 1945, to June 30, 1946).
Page 35
⟦illegible⟧
Auditing these accounts is necessary and the necessary measures must be taken to make the
required arrangements in this regard.
Auditing the revenues of Rima Khadouri Hospital and Meir Elias Hospital:-
The accountant mentioned that no audit was conducted on the ⟦form⟧ of entitlement on
the revenue and expenditure lists of these two institutions, while the audit was being
carried out by the accountant in a technical manner ⟦during working hours⟧ and we drew his attention to
the necessity of establishing a comprehensive regular audit of those accounts in a manner that ensures
due process.
⟦illegible⟧
Page 36
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7 - Revenues and Expenses of Rima Khadouri Hospital
The method followed in entering the accounts of this hospital in the ledgers under this heading
is as follows:
The Director of Administration of Rima Khadouri Hospital submits weekly schedules or every ten
days showing all revenues under their respective sections as well as expenses and payments
in detail, and these lists are signed by the Director of Hospital Administration and transferred to the accountant
to record them in the ledgers under their respective sections in the aforementioned account.
I have not performed any audit of the accounts of this hospital and have sufficed with applying the systems of these
lists in the ledgers.
Other than this, it has become clear to me that no audit has been conducted by the Hospital Administration on
these same lists during the year under
investigation
8 - Revenues and Expenses of Dar Al-Shifa Dispensary
The same observations shown under the heading of Revenues and Expenses of Rima Khadouri Hospital
apply to Dar Al-Shifa Dispensary.
Page 37
Expenses
Salaries and cost of living 16004.487 Dinars
I have conducted a thorough audit of the salaries account, especially regarding doctors, nurses,
and administrative staff, in accordance with the committee's decisions, contracts, etc., and verified their accuracy.
In this regard, I would like to suggest categorizing salaries in the future as follows:
Doctors' salaries, administrative salaries, nurses' salaries, and other salaries and wages
including servants, guards, etc.
Also, an amount of 245/- Dinars was deducted from the total of these salaries from the
Nurses' Relief Society for the salaries of nurses and servants for the free maternity ward for the year under
review, and this amount was recorded as a separate revenue.
Revenues deducted from expenses
During the year under review, the hospital received other deducted revenues from
subsistence, medicines, etc., which were not shown separately in the accounts but were recorded as a deduction from
the following expenses:
Account | Deducted Revenue | Remarks
Subsistence | 542.514 Dinars | Collected from patients and their companions
Telephone | 4.750 |
Electricity | 15.912 | Electricity fees for doctors' houses
Clothing and Furniture | 44.120 |
Medicines | 1411.744 | Revenue from patients
Surgical Instruments | 62.251 |
General remarks when auditing expenses
1- I have reviewed the internal regulations of the Hospitals Committee that were in effect during
the year under review (it has become clear to me that the committee has recently established a new system
and submitted it to the Lay Council for approval) - according to Article (20) of the old system
that "it is not permissible to spend any amount from the hospitals' finances except according to the instructions
issued by the committee." On this occasion, I would like to state that I have not seen any
instructions by the committee specifically regarding the delegation of necessary powers to process all expenses of
the hospital at all - however, I noticed that the committee issued decisions
Page 38
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From time to time regarding the expenditure of unusual amounts on buildings, etc. For example:
On 5/5/44, it was decided to spend 200/- Dinars on the hospital roofs, water
drainage, and building a room for the nurse adjacent to the bathrooms.
" 16/4/45, it was decided to spend 200/- Dinars on one of the isolation rooms.
" 22/5/45, it was decided to pave the courtyard with an amount not exceeding 800/- Dinars.
Also, purchasing medicines for 250/- Dinars and spending amounts on shelves, etc.
The total amount recorded for buildings and renovations during the year was 1687.409 Dinars,
covering labor wages, carpentry, construction materials, etc., and it was not clear from the receipts
the purpose for which these amounts were spent in relation to the committee's approvals.
2 - I have audited a portion of the expenses and found them in most cases supported by the necessary
receipts and approved by the administration. For the greater part of the year under
review, the hospital was in need of medicines purchased from time to time,
and some daily, from local markets; these purchases reached an average of thirty
Dinars in most instances. Given the circumstances at the time, it became clear to me that it was not possible
to obtain supporting receipts for the purchase, so payments were made (via the Mofji)
based on the manager's approval only.
3 - Below are some payments that specifically required approval, and these
are part of a partial audit I conducted on unusual expenses:-
On 28/9/45 - recorded according to the account of Ibrahim Yaqoub
(Hospital Mofji) the value of 41 cans of tomato
paste (from 728 kg) at a price of 2.575 Dinars - 146.575 Dinars.
" 8/11/44 - purchased in cash - pepper - without a receipt or list 184.244 "
4 - The entitlement of Doctors Mills and Raouf Sabih for the monthly analyses (at a rate of
60%, 40%) is paid to Dr. Raouf Sabih. The manager informed me that
this arrangement was made according to verbal instructions from Dr. Mills.
On this occasion, I see it as necessary to obtain a written confirmation from Dr.
Mills regarding this arrangement.
Page 40
?
Tenants' waste and floors
And it was spent on the ⟦building⟧
Assistance to the poor and these
Neighbors, 200 Dinars are distributed
And equipping the maintenance room of the
⟦hospital⟧
I support that
Why did these amounts remain suspended throughout this year and what are the arrangements
currently being made to avoid remaining without filling this deficit?
The fact that these amounts remained suspended for a long time was with the knowledge and order of the President, as
the hospital was hoping to collect them from the concerned parties, similar to last year.
As for any amount remaining as a debt of a patient in emergency cases, we inform the committee
about it at the time to take a decision regarding it.
⟦Signature⟧
Accountant
I support what was stated in the accountant's answers above 12/27/946
⟦Signature⟧
Director of Administration of the Israeli Hospital
In Baghdad 12 / 27 / 946
Page 44
2
Continuation of Equipment Audit
Receipt Register | Same method followed regarding internal ⟦supply⟧
Operations Register
Births Register
Planning (4) | Register forms are opened regarding operations and births of first-degree relatives
and verify as you wish that the designated fees have been collected -
(Pay attention to delays)
Depreciation Register | Request a schedule from the accountant showing details of revenues and expenditures
for each property separately and match the total from the ledger -
Request the Rent Register
Note the remarks in the report on the accounts for the year ending March 31, 1946
Warehouse Assets | General warehouse register regarding tools, fuel, soap, stationery
and brushes etc.
General warehouse register regarding medicines
General warehouse register regarding surgical instruments
Incoming to the General Warehouse
Mark during the audit of fund payments or daily receipts the important purchases
belonging to this warehouse and match the incoming quantities with their respective registers.
Outgoing from the General Warehouse
Note what is recorded in these registers as outgoing to the sub-warehouses and verify its entry
as incoming in the sub-registers (Pharmacy register and in the Daily Supply and also
the Kitchen register) Pharmacy register 100%, Daily Supply and Kitchen about 50%.
Verify other exported materials (partial audit as needed) until the Director's departure
and the recipient's signature.
Audit the groups of important materials to verify the final balance and match that with the final list
Verify the prices of assets on March 31, 1947 (especially important materials)
Pharmacy Register | There is a register with details of daily expenditure signed by the
specialized departments (it is difficult to reconcile this register with patients' charts)
Audit the total of important materials transferred daily to the General Register - (extreme accuracy)
Match the final balance with the assets list (important materials and their costs)
Daily Supply Warehouse Register | Audit the daily expenditure and note the Director's approvals and recipient's signature
Audit the total of some materials (50%)
Kitchen Register - | Open this register and audit what you wish from it
Audit the totals of important asset lists and note their deduction from their respective accounts in the ledger.
Page 45
Audit of Mar Elias Hospital accounts
For the year ended March 31, 1947
Journal
1- Cash transactions (audited with cash books and matching their entries under the relevant account headings with the journal)
Audit payments with all invoices and receipts supporting payment as needed - note payments
⟦...⟧ unusual ones that require a decision from the committee or approval from the Physical Council.
Audit receipts with all relevant receipts - note the sequence of receipt numbers
2- Browse all other journal entries and verify their correctness. In the case of expenses recorded
enclosed in the lists, the same notes shown regarding the payments above apply
3- Audit entries from the journal to the ledger only (four months a year)
Note: Before starting paragraph (2) above, the following is followed (especially regarding the journal entries marked below*)
Daily market lists: Browse all lists in sequence according to their dates and during that ensure
the following:
Note the approval of the manager ⟦...⟧ and the signature of the accountant, the driver, the main storekeeper, and the kitchen supervisor.
Match some lists with official records regarding main food items
Check the summation of lists (and designations etc.) 10%
* Audit the lists with their relevant journal entries (use the entries next to subsistence
in the ledger to verify that no list is repeated)
(See assets balance) - Audit part of these lists with the main store register (daily supply) and the kitchen register (5%)
(Stores)
Inspectors' lists
* Audit the welding material with its relevant journal entries. (Use the inspection account next to the entries)
Note the sequence - and verify the correctness of the total in part of the lists.
Rima Khadduri Hospital lists }
Dar Al-Shifa Dispensary }
Audit most lists with journal entries (use ledger accounts)
Verify the summation of some lists. Browse the lists to see if
there are unusual payments.
4
Continuation of Revenue Audit
All mentioned revenues were verified according to the correspondence and related documents
to - for example
Awqaf revenues attached to its budget, see report 12/31/46
Charitable Endowment revenues, see the correspondence related to them.
Fasting of Jews and Orphans { See the contracts related to these accounts
Fasting of Candles and Wax {
Audit of accounts from 4/1/47 to 12/31/47
New records were used as follows:
1- A special ledger for fund accounting, audited separately
according to the basic accounting documents
2- Patients' accounts receivable journal
The journal field is totaled and matched with other fields at the end of the month
The entry of items related to this record was audited.
3- Patients' accounts receivable cards
Its budget was matched on 12/31/47 and matched with the balance in the General Ledger
All cards related to this budget are opened and it was verified that all
accommodation fees incurred by patients have been recorded up to
12/31/47
Receipts book: all receipts were matched and everything related to the accounts was marked
Concluding note: This is all that appeared to me when auditing the records that were audited
The necessity of adding to or subtracting from them according to my diligence, and
there may be transactions the likes of which I have not previously encountered.
It is advisable to read the two reports on the accounts for the year ending 3/31/45
and the nine months ending 12/31/46.
Page 46
His Excellency the President of the Lay Council, the Respected
After greetings,
We list below our observations regarding the audit report of the Hospitals Committee accounts for the six months
ending on March 31, 1946.
P. (1) Para. (B 1) Recording amounts on dates later than their receipt
Such matters were occurring continuously during that time period, and there is no need to take any
measures now as accounting matters are proceeding in a proper manner at the present time.
P. (1) Para. (A) Opening balances on October 1, 1945
The auditor refers here to his report dated 10/7/1936 and suggested requesting the report from the
Hospitals Committee to inform the Council of its contents.
P. (2) Para. (B 2) Confirmation of credit and debit account balances
We support the necessity of obtaining confirmations of account balances at the end of each fiscal year, especially
regarding the accounts mentioned in the report to ensure the accuracy of these balances as much as possible, and we suggest
requesting the Hospitals Committee to take the necessary steps to obtain confirmation of the mentioned account balances at
the present time to verify if there are any suspended or unagreed amounts.
P. (2) Estate of the late Raphael Gabbay
There is no need for this balance (8.900 Dinars) to remain open, and it is most likely to be transferred to the
Total Income and Expenditure account, as the amounts received from this estate's account have been spent during previous
years to cover the deficit in hospital expenses.
P. (3) Storehouse Employees
We support what was stated in the report regarding the necessity of finding competent employees to carry out the accounting transactions for the stores
in a proficient manner; otherwise, it is not hoped that those transactions can be carried out successfully.
P. (4) Uncollectible amounts
We suggest requesting the Hospitals Committee to look into the matter of collecting outstanding debts and writing off the
uncollectible amounts.
P. (4) Amounts paid to the Alford Company
The hospital administration is requested to confirm the arrival of the tools for which these amounts were paid.
2
General Ledger
Opening balances on April 1, 46 were matched with the balance sheet of March 31, 46
Accuracy of totals 100%
All accounts were verified for correctness, and below are notes on some accounts
Balances were matched with the balance sheet of March 31, 1947
The bank account was audited against the passbook, accounts were matched on March 31, 47, and a balance certificate was obtained
Accounts Receivable Ledger
Its opening balances on April 1, 46 were matched with the balance sheet of March 31, 46
All accounts were verified, and it was confirmed that the customers' column as of March 31, 47 is verified
Payment or Receipt
Balances were matched with the balance sheet of March 31, 1947 and matched with the total in the general ledger
Payroll Ledger
Opening balances on April 1, 46 were matched with the balance sheet of March 31, 46
All accounts were verified and the following were read (especially doctors' accounts and other important accounts)
Monthly salaries in case there are increases (request a decision from the committee and the decision of the brothers
necessary and the approval of the Physical Council).
Check if amounts were spent for leaves (request a decision from the committee for disbursement etc...)
Verify doctors' revenues (cite the doctors' account and profits based on documentation)
Audited a portion of them.
Confirmations for important accounts were obtained as of March 31, 1947
Balances were matched with the balance sheet of March 31, 1947 and matched with the total in the general ledger
Audit related to some ledger accounts regarding revenues
1- Collection Records - Levying
The monthly total was matched with the total revenue in the general ledger - note the pending items
and verify their collection or any allowances etc. that may occur in them.
Verify the monthly total (monthly for 12 years)
Verify the monthly doctors' revenues
External Costs
Collect all receipt books belonging to this record.
Audit what was ⟦recorded⟧ from them in this record (25%)
Verify the totals (12 months in the year)
Verify the hospital's monthly share (cite based on documentation) cash marketing (100%)
(Refer to the audit of (S.K.) regarding the doctors' share)
Page 47
(( 2 ))
p ( 5 ) Fabrication of some entries (Shua Zubaida account)
This paragraph is presented to the Council for information only, as no action can be taken regarding it
at the present time.
p ( 5 ) Shamash Brothers shop account
We see the necessity of trying urgently to obtain a confirmation of the account from the mentioned shop in view of
the ambiguity appearing in it.
p ( 5 ) Allowances of Sir Elly Kadoorie
The paragraph is presented to the Council for deliberation as to whether it is possible to collect these allowances from
the children of the late Sir Elly Kadoorie, otherwise it should be decided to write them off.
p ( 6 ) Ketubot revenues
We support the auditor's observation regarding the necessity of issuing a list by the Spiritual Council of the Ketubot revenues
from time to time for auditing purposes.
p ( 7 ) Revenues of Rifka Nouriel properties
The accounts of these properties are kept accurately by the trustee and there is no need to audit them, except that
the accountant can take the revenues of each property separately for the purpose of recording them on this basis in the accounts
of the hospital like the rest of the properties.
As for the remaining properties belonging to the hospital, I believe they will be within the work of the
recently formed Property Committee, and we suggest proposing to the Hospitals Committee to take a decision regarding each lease contract so that
the auditors can verify the correctness of the amounts in the register.
p ( 8 ) Paragraphs ( 3 and 4 ) Endowment of the Dispensary and Rima Kadoorie Hospital
The contents of the two mentioned paragraphs are presented to the Council for confirmation.
p ( 9 ) Recovery of some expenses
In view of the arrangement recently agreed upon regarding the method of recording expenses and revenues, we believe that
the hospital's accounting is now proceeding according to the rule now required by the auditor, and in any case we suggest informing
the contents of this paragraph of the report to the Hospitals Committee with a recommendation to permanently abandon the old recording method.
p ( 10 ) Hospital violations regarding promotions and appointments
Payment of additional salaries for leave periods not taken by some employees
Payment of amounts without a committee decision
Page 48
( 3 )
These paragraphs are presented to the Council for information only, as nothing can be done about them now.
P. ( 12 ) Purchase of Humayun without an invoice or document
We believe it is possible to verify the validity of this purchase since the seller is known.
P. ( 13 ) Entitlement of doctors Miller and Raouf Sabih from analysis fees
We suggest referring this case to the Hospitals Committee to take whatever action is possible regarding it.
P. ( 13 ) Auditor's notes on accounting principles
This paragraph is to be communicated to the Hospitals Committee to adopt the auditor's recommendations.
Please accept our highest respects
⟦illegible⟧
Gurji Mashloon
⟦illegible⟧
Sassoon Bashi
Baghdad on 24 / 12 / 1947
Page 49
His Excellency the President of the Lay Council, Respected
After greetings,
We list below our observations regarding the audit report of the Hospitals Committee accounts for the six months
ending on March 31, 1946.
P. (1) Para. (B 1) Recording amounts on dates later than their receipt
Such matters were occurring continuously during that time period, and there is no need to take any
measures now as accounting matters are proceeding in a formal manner at the present time.
P. (1) Para. (A) Opening balances on October 1, 1945
The auditor refers here to his report dated 15/7/1936 and suggested requesting the report from the
Hospitals Committee to inform the Council of its contents.
P. (2) Para. (B 2) Confirmation of credit and debit account balances
We support the necessity of obtaining confirmations of account balances at the end of each fiscal year, especially
regarding the accounts mentioned in the report to ensure the accuracy of these balances as much as possible, and we suggest
requesting the Hospitals Committee to take the necessary steps to obtain confirmation of the mentioned account balances at
the present time to verify if there are any suspended or unagreed amounts.
P. (3) Estate of the late Raphael Gabbay
There is no need for this balance (-/8900 Dinars) to remain open, and it is most likely to be transferred to the
Total Income and Expenditure account, as the amounts received from this company's account have been spent during the past
years to cover the deficit in hospital expenses.
P. (3) Storehouse Employees
We support what was stated in the report regarding the necessity of finding competent employees to carry out the accounting transactions for the stores
in a proficient manner; otherwise, it is not hoped that those transactions can be carried out successfully.
P. (4) Uncollectible amounts
We suggest requesting the Hospitals Committee to look into the matter of collecting outstanding debts and writing off the
uncollectible amounts.
P. (4) Amounts paid to the Alford Company
The hospital administration is requested to confirm the arrival of the tools for which these amounts were paid.
Page 50
(( 2 ))
p ( 5 ) Fabrication of some entries (Shua Zubaida account)
This paragraph is presented to the Council for information only as no action can be taken regarding it
at the present time.
p ( 5 ) Shamash Brothers Store account
We see the necessity of trying persistently to obtain a confirmation of the account from the mentioned store in view of
the ambiguity appearing in it.
p ( 5 ) Sir Elly Kadoorie allocations
The paragraph is presented to the Council for deliberation as to whether it is possible to collect these allocations from
the children of the late Sir Elly Kadoorie, otherwise it should be decided to write them off.
p ( 6 ) Ketubot revenues
We support the auditor's note regarding the necessity of issuing a list by the Spiritual Council of Ketubot revenues
from time to time for auditing purposes.
p ( 7 ) Revenues of Rifka Nouriel properties
The accounts of these properties are kept accurately by the trustee and there is no need to audit them, however
the accountant can take the revenues of each property separately for the purpose of recording them on this basis in the accounts
of the hospital like the rest of the properties.
As for the remaining properties belonging to the hospital, I believe they will be within the work of the
newly formed Properties Committee, and we suggest proposing to the Hospitals Committee to take a decision regarding each lease contract so that
the auditors can verify the correctness of the amounts in the register.
p ( 8 ) Paragraphs ( 3 and 4 ) Dispensary endowment and Meir Elias Rima Kadoorie Hospital
The contents of the two mentioned paragraphs are presented to the Council for confirmation.
p ( 9 ) Recovery of some expenses
In view of the arrangement recently agreed upon regarding the method of recording expenses and revenues, we believe that
the hospital's accounting is now proceeding according to the rule now required by the auditor, and in any case we suggest informing
the contents of this paragraph of the report to the Hospitals Committee with a recommendation to completely abandon the old entry method.
p ( 10 ) Hospital violations regarding promotions and appointments
Payment of additional salaries for leave periods not taken by some employees
Payment of amounts without a committee decision