Question Tag: Locum staff

i) The following fundamental principles of the IFAC code of ethics might have been breached:

1. Integrity: An accountant is encouraged to be honest and straightforward in carrying out their duties. The Locum staff members are paid based on hours worked. Thus, under no circumstance is a Locum staff member expected to be paid for hours they did not work in the month. By complying with the directive of the Director of Health Services to pay Bismark the full allocated hours for the month, when he actually did not work, suggests dishonesty in the work of the accountant.
2. Objectivity: The IFAC code of ethics expects accountants to be unbiased in their work and not succumb to any undue influence. The use of full hours allotted to Bismark in computing his salary when other Locum staff members are paid strictly on the hours they work suggests bias on the part of the accountant. The objectivity of the accountant might be impaired by the influence of the Director of Health Services.
3. Professional behavior: The conduct of accountants at their workplace, in carrying out their duty, or wherever they find themselves, is expected to maintain the good reputation of the accountancy profession, and not to soil it. The “inconsistent” treatment given to the Locum staff, which has become known to other Locum staff, does not speak well of the accountant and could put the accountancy profession in a bad light.

(6 marks)

ii) Possible actions that the Finance Director should take include:

1. The Finance Director should engage the Human Resource Director and the Laboratory Manager, if any, or whoever Bismark reports to on the issue of Bismark’s continuous absence from work. The Human Resource Director should ensure that Bismark reports to work during the allotted hours or loses the position to a willing and ready lab professional.
2. Engage the Director of Health Services on why an exception cannot be made for Bismark regarding the determination of his earned salary in a month.
3. Engage Bismark to reiterate that he will only be paid for hours worked and not the allotted hours.
4. If the Director of Health Services insists on giving Bismark special treatment, the Finance Director should raise the matter with the Board of Directors.
5. If necessary, the Finance Director can seek advice from the professional body on the matter.

(4 marks)