Internal Audit

Internal Audit Activity Plans can be viewed here.

  1. To ensure the full functioning of internal audit during the period of martial law in Ukraine, the NHSU Internal Audit Department, taking into account the recommendations of the Ministry of Finance of Ukraine, reviewed the fundamental approaches to organizing and conducting internal audits.
  2. The NHSU Internal Audit Department, following the instruction of the NHSU Head dated 01.09.2022 No. 83-d, conducted an unscheduled internal audit of the accuracy and reliability of the information on accounts receivable under the budget program for CPC 2308060 “Implementation of the State Guarantees Program for Medical Services” for the period from 01.01.2022 to 01.09.2022. The audit report was issued on 30.12.2022 No. 18-16/2-2022.

To investigate the causes of accounts receivable by counterparty, the audit team analyzed, on a selective basis, contracts with providers, internal memos, demand letters, and claims recorded in the electronic document management system ASCOD. Considering the volume of accounts receivable, the audit team also examined the status of claim and litigation activities conducted by the NHSU Legal Department.

The audit results established that compared to the beginning of the year, accounts receivable increased by UAH 8,134.6 thousand, or 3.96%. During January–August 2022, the debt for 28 medical service providers remained unchanged, while for 7 providers, debt arose between February and August 2022.

During communications between the Internal Audit Department, the Legal Department, and medical service providers from October to December 2022, 38% of the total debt for the 11 months of 2022 (as of 01.01.2022) was repaid. For eight months of 2022, UAH 5,744,912.67 was repaid, and during the audit, repayment of UAH 3,510,785.78 of accounts receivable was ensured.

During the audited period, Form No. 7-d “Report on Budget Institution Debt” did not indicate overdue accounts receivable, specifically in column 6 “Accounts receivable at the end of the reporting period (year), total – overdue portion.” From the total accounts receivable arising at the date of budget reporting under the execution of the budget (planned use of funds) for the current and previous reporting years, the overdue portion is specified. Overdue debt refers to debt arising on the 30th day after the due date according to the signed contracts, or if no payment date is specified, after the invoice is issued.

The audit concluded that the main cause of accounts receivable in the NHSU is the widespread practice of untimely payments to medical service providers, advance payments, and insufficient claims and litigation work to recover budget funds to the NHSU or the budget.

Other deficiencies were also identified as a result of the audit.

To ensure rational use of budget funds and compliance with contracts concluded by the NHSU with medical service providers, relevant audit recommendations were provided to the heads of NHSU structural units.