A COMPARATIVE STUDY OF EXPENDITURE CONTROLS METHODS IN GOVERNMENT OWNERS AND PRIVATELY OWNED HOSPITAL (A CASE STUDY OF THE UNIVERSITY OF NIGERIA TEACHING HOSPITAL.ENUGU AND TORONTO HOSPITAL AND MATERNITY ONITSHA)
This research work is on expenditure controls method in government owned hospitals, a case study of university of Nigerian Teaching hospital (UNTH) Enugu and Toronto hospital and maternity Onitsha. This research is aimed at studying and analysing the different method of expenditure control being adopted by these hospitals, their practical application and their level of effectiveness. It is aimed at carrying out a comparative analysis of two hospital. This research instruments used for the will include questionnaire, interview and observation, which sought to find out facts needed for analysing. The data collects will be analyzed by use of simple percentages chi-square distribution method. The finding of the analysis indicates among other that:
i. Government owned and privately owned hospitals operate the same types of accounting system but final account kept by the two hospital are not the same.
ii. The method of expenditure control used by the hospitals is not the same. That is daily controlling for privately owned hospital and vote card method for government owned hospital
iii. The different methods of expenditure control used by the two hospitals are effective but, with sigh loophole associated with vote card method.
The conclusion reached is that expenditure control is vary important and in dispensable for any hospital be it government of private for attainment of their objective.
Consequently it has been recommended among others that:
i. Both hospital should adhere strictly to authorization procedure for drug purchased and materials purchases.
ii. Government hospitals should adjust their in method to fill loophole associated with it.
iii. Both hospitals should exhibit high degree of cash management.
TABLE OF CONTENT
1.1 Statement of problem
1.2 Objective of the study
1.3 Scope and Limitation of study
1.4 Significance of the study
1.6 Definition of terms
2.1 Overview of expenditure Control
2.2 The expenditure control method/internal Control
2.3 Overview of Internal Control
2.4 Internal Control method of expenditure Control
2.5 Responsibilities of Internal control
2.6 Internal auditing review
2.7 Internal audit as a method for expenditure control
2.8 Management audits
2.10 Cost benefits Analysis
2.11 Expenditure control method in application
2.12 Daily Control method of expenditure Control
2.13 Daily Budgeting
2.14 Daily check
2.15 Daily Analysis
2.16 Benefits of the daily control method of expenditure
2.17 Vote card method of expenditure
2.18 Benefit of vote method of expenditure
2.19 Item relates to income generation of a hospital
2.20 Non medical fee (income)
2.21 Items related to the expenditure of a hospital
2.22 Definition of item
RESEARCH DESIGNS AND METHODOLOGY
3.2 Sample Selection
3.3 Description of |Instrument used in data Collection
3.7 Questionnaire distribution/Collection
3.8 Other source of data
3.9 Procedure of data analysis
3.10 Decision rule
PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA
4.2 Presentation of data
4.3 Analysis of data
4.4 Testing of hypothesis
4.5 Mayor Finding
4.6 Interpretation of result
5.0 Summary of Finding, Conclusion and Recommendation
5.1 Summary of finding
Introduction organisation with exception of every minute and unorganized ones, there is a process known as expenditure control or cost control which is a part of management control process.
This process is very important to any organisation be it a profit maximizing organisation or non profit maximizing organisation. Thus is because lack of this practice in any organisation will cause misapplication of cash in cash disbursement process and this will create a very big problem leading the organisation into deficit and at an extreme case the organisation might fold up
(ie liquidation) Many research have bee conducted in the reason for folding up of companies and organisation in which lack of expenditure control process had been found responsible.
Expenditure control has been defined as the process by which managers utilizes effectively and efficiently the scarce resources in the achievement of organisational goal. At this juncture let us look at expenditure and control from a separate perspective.
Expenditure: It is the total amount spent on the process of trying to achieve a particular goal. This amount spent might be regained if the goal is not achieved.
Control: Is the fact of making things world in a way the is required. It is also the used by either government of official organisation to make restrictions on wages increases, immigrate credit and so on (which are all expenditure)
As regards to this project topic which is a comparative study of expenditure control methods in governments ownes and privately owned hospitals. A case study of university of Nigerian Teaching Hospital, Enugu. (UNTH) and Toronto hospital and Maternity Onitsha.
This implying a comparative study of non-profit-making organisations, since UNTH is government owned hospital while Toronto is privately owned hospital as a category is of non profit making organisation are characterized by the following:
a. There is neither a conscious profit motive nor an expectation of earning net income.
b. No part any excess of revenues over expenditure is distributed to those who contributed support through taxes and voluntary donations.
c. Any excess of revenue over expenditure that results form operations in the short run is ordinarily used on later years to further the purpose of the organisation.
profit making organisation, the reverse of this characteristic is the case in the sense that their major focus is to maximize profit and excess of revenue over expenditure are given to its owners.
Governments owned hospitals pay more attention to services they render to public as their major objectives is to provide services that fulfil a social needs for those who do not have the purchasing power to acquire these services themselves.
Irrespective of the fact that private hospital try to render a good services to the public, they pay more attention to maximization of their major objectives.
Comparative study of expenditure control in government’s and privately owned hospital which is the major research question in this project has to do with the different way and methods by which expenditure is being controlled in each of the hospitals so that they will not run into deficit or liquidations.
According to I.E Johnson (1976) in his book public sector accounting financial control he states that the management control concept which imbibes the expenditure control are the same both in of profit oriented and non profit oriented organisation, but the implication of these concepts differ in important respect. We will want to find out if also the expenditure control methods are the same or differ in the two hospital under study, owning to the fact that one is non profit oriented while the other is profit oriented.
1.1 STATEMENT OF PROBLEM
The problem definition in this project is to investigate and analyse the different ways and methods by which expenditure is controlled in government owned hospitals and privately owned hospitals so that they will not run in deficit and liquidation. As a comparative analysis two hospitals has been selected for study, they are university of Nigerian Teaching Hospital (UNTH) for government hospital and Toronto Hospital and maternity for privately owned hospitals. In this research therefore, we are group to study the different method of expenditure control being adopted by these hospitals and their practical application and their level of effectiveness.
These study will now form a basis for our analysis, which will help us answer some researcher question which include:
i. Do privately owned hospitals and governments owned hospitals operate the same method of expenditure control ?
ii. How do they go about it in practical application.
iii. Are there any similarities and differences in their method and applications ?
iv. How effective are they to their users ?
1.2 OBJECTIVE OF THE STUDY
The study is conducted in other to:
1. Establish weathers government hospital and privately owned hospital operating the same or different accounting system.
2. Compare the expenditure control model as adopted by the privately owned hospital and with that of the government owned hospital.
3. Ascertain the rate of efficiency and their effectiveness in the operation of the privately and government owned hospital in relation to expenditure control.
4. Make recommendation based on the finding.
1.3 SIGNIFICANCE OF THE STUDY
Control has to be exercises over all aspect of a business organisation as a guard against any derailment form the organisations objective.
Therefore the need to install an effective and efficient expenditure control in any organisation he it profit oriented or non profit oriented cannot be over emphasized. Thus is because lack of this practice (expenditure control) in any organisation (Profit oriented or non profit oriented) will cause misapplication of cash in the cash disbursement exercise. Thus may create a very high problem which any lead the organisation into deficit and in extreme cases, the organisation may fold up.
These defines why research hopes to create awareness to management team of government owned hospital in order to out in place an effective expenditure control system.
It will also improve the various way and methods by which expenditure are being controlled in each of the hospitals.
Being a comparative study, it will be useful to policy formulators in health related issues, hospital management board and potential manager of hospitals.
In this study we will have two man type of hypothesis the null hypothesis demotes by (Ho) and Alternative hypothesis denoted by (Hi) The null hypothesis is constructed such that it can be accepted if reject the alternative hypothesis.
Accordingly, thus researcher would examine the following hypothesis
Ho: Government and Privately owned hospital do not
operate the same type of accounting system.
Hi: Government and privately owned hospital operate
the same accounting system.
Ho: Government and privately owned hospital do not use
the same method of expenditure control.
Hi: Government and privately owned hospital uses the
same methods of expenditure control
Ho: The methods of expenditure control used by
government and privately owned hospital are not
effective and efficient.
Hi: The method of expenditure control used by
government and privately owned hospital are
effective and efficient.
DEFINITION FO TERMS
For the purpose of clarity, the following term used in this
context are hereby elaborated
expenditure control- management tools that guides and ensure that company /organisational spending are in accordance with the policy plans
Misappropriation- Use of fund/cash in a wrong purpose
Comparative study:- Studying the different and similarities in expenditure control
Deficit – Being run at losses
Privately owned hospital: Hospital owned and financial by an individual or group of people.
Auditing statements and quide line:- These are basic principle and practice which members are expected to adhere to in the conduct of audit work.
Government owned hospital: Hospital owned are controlled by government either federal states or government.