AI English Translation, Pages 26-50
⟦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⟧
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 ⟦...⟧
- 8 -
Continuation of Assets
Insurances - 175.975 Dinars - Table No. 4
I have reviewed certificates from the competent authorities regarding the insurances belonging to the hospitals
and some of them showed slight differences compared to the books, and the necessary adjustments
were made in the year 1945 - 1946.
The late Sir Elly Kadoorie - 1287.750 Dinars
Deduct: Suspended accounts of the late Sir Elly Kadoorie 900.000 ⟦line⟧
387.750 Dinars
The endowments of the late Sir Elly Kadoorie amounted to 450/- Dinars annually, allocated
as 225 Dinars for the Rima Kadoorie Hospital and 225 for the Meir Elias Hospital. And because
from the date communications were cut off during the war years, this resource was not paid in the middle of the year
1940, and the inspection continues to record the entry at the end of each fiscal year, but the
revenue was not actually received but rather suspended, and these amounts are as follows:-
At the end of 30/9/41, the amount owed by the late Sir Elly Kadoorie reached 387.750 Dinars
which was recorded as revenue for the relevant years.
As for what was received after the war during the four years ending on 30/9/45, amounting to
900/- Dinars, it was recorded as revenue in the suspended accounts of the late Sir Elly Kadoorie as shown above.
In this regard, the Chairman of the Committee informed me that the Committee will inspect the school attached to the correspondence
with the competent authorities regarding these suspended accounts in order to obtain a final settlement and decide
on making the necessary accounting entries for that.
⟦line⟧
⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
⟦illegible⟧ ⟦...⟧ ⟦illegible⟧
When was it written to the heirs of the late Israel Hassouri? The date, please.
The committee wrote to the heirs of the late Israel Hassouri on 6/22/946
And no response was received ⟦illegible⟧
- 9 -
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)
The hospital's share of the revenues from the properties of the Rifka Nureil endowments - 1719.924 Dinars
I have not seen any organized account from the trustee of the aforementioned endowments regarding the receipt of the
hospital's share of the revenues of these properties for the year under review. I have learned that this revenue
is delivered by the aforementioned trustee to the head of the committee, and the necessary entries are made accordingly from
time to time. Other than that, the hospital does not possess any register showing the details of the endowed properties.
Therefore, I was unable to conduct any audit on these revenues.
It is necessary to request from the trustee an annual account or from time to time showing how
the hospital's share of these revenues was reached. Likewise, a special register should be opened showing the details of these
endowments and any other endowments so that the hospital can inspect them and verify their revenues.
5 - Property Revenues - 1785.606 Dinars (Table No. 2)
Following is a table showing the details of the properties endowed to the Jewish hospitals with all the revenues
from rents and expenses for the year ending September 30, 1945, as shown in the property register.
Taking into account the following observations, I have considered what is shown in the property register and other
books to be correct:-
1 - The President informed me that all the Tabu (land registry) documents for these properties are kept
with the Lay Council, and I see it appropriate for the committee to decide whether it deems
necessary to verify the documents and titles of the properties belonging to the hospitals
and to ensure the existence of an organized register with the Lay Council that matches the hospital's register.
2 - I have not seen contracts for all the rents for the year under review except in the following
cases:
House No. 127/25 Torat - Rent 92.500 Dinars
" " 120/28 Shahdiya " 160.000 "
Shop " 9/166 Ras al-Qarya " 62.000 "
Number 2 No. 9/168 and 9/169 " 12.000 "
" No. 9/170 Ras al-Qarya " 62.000 "
In a few other cases, I have reviewed previous contracts and the rents were recorded according to them
for the year under review.
3 - The attached list includes 2 houses under No. 129/72 and 94/282 Torat,
endowed by His Excellency the Senator Rabbi Ezra Menachem Daniel in the name of the hospital.
I have reviewed in this regard a letter from the esteemed Lay Council dated April 6, 1944
- 11 -
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).
The seventh year ⟦illegible⟧
⟦line⟧
No endowment p. 4
p. 12
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
⟦illegible⟧
The auditing of these accounts is necessary and the necessary measures must be taken to conduct the
required audits in this regard 70
Auditing the revenues of ⟦illegible⟧
⟦illegible⟧ mentioned that ⟦illegible⟧ in the administration of ⟦illegible⟧ on
the lists of revenues and expenditures of the ⟦illegible⟧ sect, while the audit was being conducted
on them in the accounting department in a technical manner at ⟦illegible⟧ and the aforementioned person joined
regarding the necessity of establishing a special ⟦illegible⟧ audit on those accounts in a ⟦illegible⟧ manner
⟦illegible⟧
- 12 -
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.
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
- 14 -
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.
- 15 -
General Observations
1 - Article 69 of the Internal Regulations states that the Committee monitors the accounts
and appoints employees etc... As for the appointment and dismissal of the Director, the Doctor, the Pharmacist, and the Accountant,
it must be done with the approval of the Spiritual Council.
In this regard, we see that this article was not acted upon most of the time, and it is seen
that in cases of necessity and upon assessment, an arrangement in the Spiritual Council is added to the signature of the Chairman of
the Committee on contracts.
2 - It was noted when auditing the receipt vouchers from the books on 1/10/44 that the following receipts
475/ 4771 amounting to ⟦illegible⟧ on 9/9/44, which total 949.740 Dinars, were collected
on 29/9/44 and were included in the accounts of the year preceding the year mentioned above.
The details of this amount arranged are as follows:-
Ticket fees 405.750
Reports 9.450
Vaccination 9.250
Birth 25.000
Analysis 4.000
Received from inspection ⟦illegible⟧
For the account in receivables 796.290
⟦line⟧
949.740
Upon investigating the reasons for the delay in recording this aforementioned amount, it became clear
on 29/9/44 so that the total collection for the month of September, in addition to the amount of
144.545 Dinars which was decided to be spent as a high cost of living allowance for employees and servants for four months
⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧
went to a special account ⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧
Baghdad on November 4, 1944
We did not find any document for this aforementioned amount in the Committee's files, but all that
the Work Organization Committee requested regarding small miscellaneous receipts for the receipts of the employed staff
where this amount is shown as paid (with other amounts) as wages on a paper until it was spent
on the end of the girls' section, by an order whose issuance date was after 21 before the month of July 1944
(the last date on which the health books were closed).
We find that the confusion of the financial system ⟦illegible⟧ ⟦illegible⟧ ⟦illegible⟧ was spent on the girls' section.
Accounts Inspector
Who are those who were appointed without this approval?
This is a very erroneous method! Accounting notes must be taken regarding the "necessity"
which he saw as urgent in his view to perform such entries
Amounted to 622,740 Dinars
This amount was recorded, which is the revenue from 10/1/944 until 29/6/946
by order of the President due to the unavailability of its documents in the month of September for the period between the two dates.
Amounted to 545,144 Dinars
Please provide us with what is useful in this regard concerning the President's clarifications as mentioned above.
- 16 -
from the hospital fund, and the amount remained suspended throughout the mentioned period because it was difficult
to collect, nor was it possible to obtain more than 200/- Dinars from Hayat Shaul.
⟦...⟧ The amounts are recorded as shown; otherwise, it appears that what was collected from Shaul Safi's family has no relation
to the hospital buildings.
2- We find from most of the points mentioned in this report that when the accounts were settled on
May 31, 1945, most of the accounts remained as they were, and the following important points
were not taken into consideration:-
a - Recording the deposited amounts suspended as a liability of the hospital on the date of settlement as
expenditure on the committee's accounts and presenting formal receipts in the "Miscellaneous and Unpaid Expenses"
account (for example, the amount deposited in the name of Mr. Anwar Cohen amounting to 300/- Dinars on 9/22/45).
b - Recording the deposited amounts realized for the hospital on the date of settlement as revenue in
the specialized accounts and suspended in the committee's accounts or the "Accumulated Revenues" account,
provided they are subject to liquidation.
c - Continuing all accounts to verify their accuracy, and after religious and personal services,
performing all necessary audits and adopting the point of accounts realized for collection or payment.
4 - Listed below is the information for the treasury accounts of the amounts deposited as liabilities of patients since 1942
(and I have no knowledge of what preceded this date), and these are according to the patients' trust register, which is not linked
to the account books:
9/22/42 Mahmoud Ahmed Al-Mahfouz - Shendi ⟦...⟧ 54.250 Dinars | 51.740 Dinars
11/15/42 Salim Abdul Aziz | 15.648
4/22/44 Abdul Karim Al-Kashash
August 1945 Yaqub Sassoon Andonia | 25.750
Year 1945 { Khadouri Abboudi | 106.478
Shaul Qasha | 24.000 collected
Ibrahim Shandour Batat | 19.000
Eliyahu Abdullah Nawara | 141.207
Naji Qaza | 46.270
⟦line⟧
418.643 Dinars
?
Excellent waste wood and bricks
And I spent on ⟦...⟧
With the assistance of the servant of the poor, Wahba
The materials cost about 200 Dinars
And it was completed by the maintenance movement of the
Hospital
I endorse that
Why did these amounts remain suspended for all this time and what are the arrangements
that are being made now to spend them to avoid something of this sort?
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. As for the present time,
based on the desire of the Chairman of the Board of Directors, we are carrying out the task
when the time comes to make a decision regarding it.
Accountant
I endorse what was stated in the accountant's answers above 12/27/946
Director of Administration of the Jewish Hospital
In Baghdad 12/27/946
- 17 -
I see it appropriate for the committee to take its decision regarding these suspended items. ⟦illegible⟧
The department also suggests that it submits a list of such suspended items from time to time to the committee ⟦illegible⟧
deputed from among its members for this purpose to take care of their liquidation.
General remarks on the principles followed in keeping the hospital's books
The basic account books are based on double-entry principles but on the old, lengthy "Budget"
method which does not agree with the requirements of diverse and complex transactions like
hospital transactions. These need reform in important aspects as follows:-
1- Since the previously mentioned organized transaction, the ledger and all other
subsidiary books have been dispensed with.
The method currently followed in the cash transaction is keeping a book to record the receipts
and payments of the fund and adjusting the balance daily. This book is based on receipts
as a basis for its steps, so it records the details daily in a draft and then transfers them to the journal
(centralized by that name) and from the journal to the ledger and subsidiary books.
It is clear from this that the time required for this work and the amount of entries necessary for it are
three or four times what would be required if the cash book were used as it should be.
It is worth mentioning that the continuation of this work in the mentioned form requires studying the current situation
from all its aspects and taking into consideration all the branches of revenues and expenditures
in order to arrange the necessary classification according to the required subsidiary records. Furthermore, I
do not see any difficulty in applying this method.
2- Dispense with the services of the loan associated with the basic records of accounts in light of the proposals
submitted by Mr. Naeem Sofer in his assessment of all hospital transactions as well as
by the committee deputed by the esteemed Council.
Concluding remark: I believe that I have shown in this report all the necessary remarks about everything
that appeared to me of important aspects in the books and accounts, and I hope for the intended benefit from it
by your respected committee.
I see it as a duty to offer my sincere thanks to the Administrative Director and the rest of the staff for the
assistance they showed and for giving me all the information and clarifications I requested.
In conclusion, please accept my highest respect.
Sincerely,
⟦signature⟧
Baghdad on November 24, 1947
Administration of the Lay Council - Baghdad:
Number: ⟦illegible⟧
Date: ⟦illegible⟧
File Number: ⟦illegible⟧
His Excellency the Respected President of the Lay Council
Baghdad
Greetings and respect,
With reference to your instructions issued to me under your letter No. 7 dated
2/2/47 regarding the auditing of the accounts of the Hospital and School Committees for the six months
ending on March 31, 1946 - I have submitted to the Secretary of the Community two copies
of my report dated the 25th of this month regarding the hospital accounts for the period mentioned above
accompanied to your Excellency, and therefore the income and expenditure account and the balance sheet
with all the schedules related to the accounts as of March 31, 1946.
I was not able to carry out the audit of the school accounts due to my lack of time
and I have learned that the School Committee has appointed an auditor for its accounts with the approval of the Lay Council.
On this occasion, I would like to offer my apologies to your Excellency for my delay in carrying out
this task, and I had explained the reasons that hindered me from working to Mr. Cohen Shalooh.
Finally, please accept my highest respect
Sincerely
Saleh Cohen
Secretary
- Please present the report to Mr. Naji Shalooh
and ask him about it, then present it to the Council accompanied
by your remarks
11/28
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.
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.
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)
(( 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
( 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