CHF fund management - health facility level

Financial Management - Health Facility Level


Effective and efficient management of fund is essential at health facilities if improved health service provision is to be attained. Understanding this fact, HPSS Project in collaboration with PO-RALG; on 2012 conducted an assessment to establish the practices applied by health facilities in managing financial resources from various source. The findings indicated that facilities had no standardised procedures to manage funds and therefore contributing to loss of resources allocated for healthcare provision. This resulted into a consensus to develop guidelines for governing management of public funds at health facility.

The guidelines were developed in line with the Public Finance Act, Local Authority Finance Act and Public Procurement Act, Health Services and Public Hospitals Regulations. They take into account the policy and procedural instructions introduced by the central government, district health services department and other legislative authorities. These guidelines are designed to set out financial, accounting and audit policy and procedures applicable to public funds held by health facilities.

These guidelines outline the minimum standards to be maintained by health facilities in receipt of revenues from various sources (both recurrent and capital) and utilization of these funds for health services provision.

All administrators of health facilities are required to understand and adopt the requirements of these guidelines in respect to accounting policy

Key Issues on the guideline

The guidelines illustrate issues including:

  • Compliance to policies
  • Accountable Documents
  • Books of accounts
  • Budgeting preparation and approval procedure
  • Custody and control of funds
  • Audit Requirements


Monitoring surveys on application of these guidelines has indicated the results including:

  • Improved public finance management practices in health facilities in project areas
  • Improve financial reporting at health facility and Council level
  • Increased transparency on managing public funds
  • Improved healthcare provision due to increased efficiency in managing financial resources

Health Facilities should adhere to these guidelines in managing available resources. This will result into improving quality of health services.

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