ACC 2298 : public sector project selected internal controls to mitigate risks at Mount Carmel Hospital

Abstract

The main purpose of the study is to analyse selected internal controls in place at Mount Carmel Hospital, Malta's state hospital that provides Mental Health Services. The study will define how the hospital's Management have adapted them to their requirements, to the extent of determining how in effect they mitigate existing risks. Moreover it will show how effectively these controls are implemented in the daily operations that will impact the financial figures which ultimately reflect in the financial statements of the Hospital. The study wiil outline how this is done in line with the guidance of the Public Sector framework of rules and regulations and will also indicate how the proper administration will help to reduce the impact of existing risks. Design The objective of this study was achieved following unstructured interviews conducted with the Financial Controller of Mount Carmel Hospital, that allowed more flexibility for discussion during the meetings held and also through observations throughout personal past employment within the Hospital. Findings Efforts are noticeably clear in order that an adequate internal control system is properly administered at Mount Carmel Hospital and that it is compliant to the established Public Sector laws. There is good understanding of the importance to handle the various risks encountered with the ultimate ideal to utilise public funds in an effective and efficient way while keeping expenditure at the bare minimum. Conclusion The study underpins the awareness at Mount Carmel Hospital that having a sound internal control system in an organisation is the means to minimise the possibilities of errors, fraud and irregularities. The study evidenced the fact that the devolution of control and decentralisation of budgets bring more ownership amongst the responsible officers and increases the possibility of success at the Section level, which will then impact also the overall Hospital results. It has also been concluded that despite having functionality of the proper processes one still has to question whether the outcomes are those actually desired. Furthermore internal control should be a dynamic exercise and constantly monitored especially in the defined high-risk areas where new risks can easily be created.