AN EVALUATION OF INTERNAL FINANCIAL CONTROLS IN PUBLIC HOSPITALS 

AN EVALUATION OF INTERNAL FINANCIAL CONTROLS IN PUBLIC HOSPITALS 

ABSTRACT
The main objective of the study is to evaluate internal financial controls in public
Hospitals in the Regional and Municipal Hospitals in Sunyani and District Hospital in
Bechem. It was also to establish the existence of internal financial controls. It was to
find out the level of compliance. Further, to establish the consequences of compliance
and non-compliance with regulations. Data was collected from three (3) Hospitals and
twenty-five (25) members of staff. Purposive sampling and observation technique were
used. Questionnaires and structured interview guides were used to gather data regarding
internal financial controls in the three Public Hospitals. Data analysis and presentation
were done with the aid of Microsoft Excel but carefully done to give the researcher a
hand-on experience in carrying out such an exercise. The research period covered six (6)
months. It was discovered from the findings that there were existence of internal
financial controls regulated by Financial Administration, Procurement, Internal Audit
Agency Acts and indirect application of COSO. As a Government organization it was
more concerned about solving what it considered more pressing issues of fulfilling its
objectives than ensuring quality, as it was not a profit making entity. It was revealed that
the level of compliance was high with regard to other financial management regulations
like Financial Administration, Procurement and Internal Audit Agency Acts. This is very
commendable and must be encouraged. It was also discovered there was strong
compliance with the internal financial controls, and this may reduce the volume of work
of the auditor. On the other hand human error in the use of judgment, simple processing
errors and mistakes, collusion of staff in circumventing controls and unscrupulous
people abusing that responsibility can override controls. It was recommended that the
existence and operation of internal financial controls system was not enough but its
operations should be effective. For it to be effective targets should be set for the
operations. It means therefore that target could be compared to the performance
standard. It is recommended that COSO should be used directly as one of the laws and
conventions. It is recommended that management should take COSO serious especially
those in non profit making organization like the public hospitals to achieve value for
money with the resources at our disposal.

TABLE OF CONTENT

Title page- – – – – – – – – i
Approval page – – – – – – – -ii
Dedication – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -v
Table of content – – – – – – – -vi

CHAPTER ONE
INTRODUCTION – – – – – – – -1
1.0 Background of the study – – – – -1
1.1 Statement of the problem – – – – -5
1.2 Purpose of the study – – – – – -6
1.3 Significance of the study – – – – -8
1.4 Research questions – – – – – -9
1.5 Scope of the study – – – – – – -10

CHAPTER TWO

LITERATURE REVIEW – – – – – – -11

CHAPTER THREE

Research methodology – – – – – – -39
Design of study – – – – – – – -40

CHAPTER FOUR

Presentation, analysis and interpretation of data – -48

CHAPTER FIVE

Summary of findings – – – – – – -60
Conclusion – – – – – – – – -61
Recommendations – – – – – – – -62
Suggestions for further research – – – – -64
References – – – – – – – – -65
Appendix I – – – – — – – – -68
Questionnaire. – – – – – – – -69

AN EVALUATION OF INTERNAL FINANCIAL CONTROLS IN PUBLIC HOSPITALS 

Sharing is caring!