Health and Social Affairs of Georgia examined/assessed the state of uninterrupted medical care222 and respective risks in the LTD Centre of Mental Health of East Georgia.223 The inspection revealed the following violations: the Bediani Psychiatric Clinic does not meet the general terms of licensing under the Statute on the Procedure and Terms of Licensing Medical Activities and Issuing a Permit for Inpatient Facilities approved by Order no. 385 of the Government of Georgia of 17 December 2010. Due to this, as early as on 3 April 2018, the LEPL Agency of State Regulation of Medical Activity fined the establishment. However, even by the time the Internal Audit Department of the Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs of Georgia finished its inspection (February 2019), there had been no concrete steps taken by the management to comply with the licencing terms. According to the finding of the Internal Audit Department, the wrong financial policy of the centre’s management led to a debt of GEL 165,615 towards the providers. The inspection of the debt revealed that the centre failed to comply with the business plan approved by the LEPL National Agency of State Property; the costs of nutrition and medicines were artificially reduced, and salaries and other expenditures were increased.224 The amount the management spent on the salaries exceeded the amount determined by the business plan by GEL 81,624 which led to the debt. Therefore, the centre’s business plan for 2018 was determined by the management from the very beginning so that it failed to be tailored to the centre’s needs. The expenditure for the needs determined by the LEPL Agency of State Regulation of Medical Activity is completely ignored from the planned income of 2018 and has not been planned at all. The centre’s administration could not plan and implement preventive measures in order to avoid the risks of the hindering provision of medical care. As a result, the establishment faced the real risk of having its license revoked and suspension of activities. Based on the identified violations, the Internal Audit Department made the following recommendations: 1) the report on the examination/assessment of the state of uninterrupted medical care and respective risks in the LTD Centre of Mental Health of East Georgia should be sent to the National Agency of State Property; 2) taking into account the violations/failures identified in the report, the LEPL Agency of State Regulation of Medical Activity should consider the responsibility of the Director General of the centre; 3) the issue should be taken to the LEPL Agency of State Regulation of Medical Activity; 4) to take into account the centre’s financial situation when imposing sanctions for the breach of licensing terms (debt towards providers in the amount of GEL 165,615) and the fact that repeated imposition of a fine on a license-holder does not necessarily lead to a tangible outcome in terms of improving the licensing terms and to consider the issue of complying with licensing terms 222 Since somatic medical care is not covered by the Mental Health Care Programme, the term “medical care” referred to in the conclusion actually means psychiatric care. 223 Incorporates the Surami Psychiatric Clinic and the Bediani Psychiatric Clinics. 224 Beneficiaries’ nutrition and medicine costs were determined to be 30% instead of 38% of projected revenue. The centre’s management is unable to adduce the reason thereof. The expenditure amounted to 34%, i.e., GEL 78,913 more than planned and GEL 80,067 less than the projected revenue indicator. 81