The accounting system is based on accrual basis and on the system of double entry book keeping. It may be mentioned here that the sure of journal Voucher should be introduced to make the accounting system as ‘accrual’.
The method for any expenditure or income, which has not been met up by cash money for certain period but recorded in the books of account through Journal Voucher (J/V), is called “accrual basis”. e.g. an amount for ‘salary’ and ‘Cr.” Under ‘Provision for Salary head.
According to the rules of double entry system, each entry is always entered in two different accounts i.e., every debit must have it s corresponding credit. The primary books of account like cashbook, general ledgers etc. have to be maintained at all accounting affairs following the principles of double entry system.
The primary documents are:
Debit Vouchers and
The information on the above mentioned documents are recorded on to:
(i) Receipts/Payments Statements,
(ii) Cash/Bank Books by each and every location of TMSS where financial activities take place.
Accounting system of Rafatullah Community Hospital (RCH) of THS, TMSS has a transparent management system. To ensure the proper implementation and management of activities, it should observe the quality and accuracy of accounting activities through a third eye. Auditing procedure of THS works as the third eyeion.
Two types of audits are conducted by the organization. These are as follows:
- Internal Audit
- External Audit
The internal audit team conducts internal audit independently.
The government recognized audit farm conducts external Audit. The external audit farm audits the accounts of the THS accounts.
The auditing issues are as follows:
- Office Management;
- Group Management and
- Accounts Management
Frequency of Auditing:
- Annually both external and internal audit
- Midterm audit is conducted on specific project
- Final audit is also conducted in the case of completion of specific project