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A COMPARATIVE STUDY OF EXPENDITURE
CONTROL-METHODS-IN-GOVERNMENT-AND-PRIVATELY OWNED-HOSPITALS
Abstract
This
research work on A Comparative Study of Expenditure Controls method in
Government and private Hospitals is aimed at studying and analysing the
different methods of expenditure control that is being adopted by these
hospitals, their practical application and their level of effectiveness. It is
aimed at carrying out a comparative analysis of two hospitals. To achieve the
aim of this research, secondary data through textbooks and journals were used
to review some of the related literatures. Equally, questionnaires, interview
and observation, which sought to find out facts needed for analysing, were
used.
The
questionnaires were analyzed by simple percentages while hypothesis were tested
using chi-square statistics. The findings of the analysis indicate among others
that the method of expenditure control used by both hospitals are not the same;
The daily control method for private hospitals and the vote card method for
Government Hospitals. The different methods of expenditure control used by the two
hospitals are effective, but with slight loopholes associated with vote card
method. I recommend among others that both hospitals should adhere strictly to
authorization procedure for drug purchased and materials purchases. Both
hospitals should exhibit high degree of cash management and employ competent
personnel for proper and efficient expenditure control.
TABLE OF
CONTENTS
Approval
page ii
Certification
page iii
Dedication
iv
Acknowledgement
v
Abstract vii
Chapter One
1.0
Introduction 1
1.1 Background
Of The Study 1
1.2
Statement Of the Problem 4
1.3
Objectives Of The Study 6
1.4 Research
Questions 6
1.5
Formulation Of Hypotheses 7
1.6
Significance Of The Study 8
1.7 Scope Of
The Study 9
1.8
Limitations Of The Study 9
1.9
Definitions Of Terms 10
Chapter Two
2.0 Review
Of Related Literature 12
2.1
Introduction 12
2.2 Overview
Of Expenditure Control 12
2.3 The
Expenditure Control Methods 14
2.4 Internal
Auditing Overview 19
2.5
Management Audit 25
2.6 Cost
Benefit Analysis 27
2.7
Quantitative Models For Expenditure Control 28
2.8 Items
Related To the Income Generated In A Hospital 32
2.9 Items
Related To The Expenditure Of A Hospital 36
2.10 The
Expenditure Control Method That Are In Application 37
2.11 Vote
Card Method of Expenditure Control 42
Chapter
Three
Research
design and Methodology
3.0
Introduction 45
3.1 Sources
of Data 46
3.2 Research
Instrument 47
3.3
Reliability and Validity of Research Instrument. 48
3.4
Population 49
3.5 Sample
Size/Technique 50
3.6
Administration Of Research Instrument 52
3.7 Method
Of Data Analysis 52
3.8 Decision
Criterion For Validation Of Hypotheses 53
Chapter Four
4.0 Data
Presentation and Analysis 54
4.1 Data
Analysis/Presentation 54
4.2 Testing
Of Hypotheses 67
4.3
Discussion of Findings 75
Chapter Five
5.0 Summary
of findings, Conclusion and Recommendations 78
5.1 Summary
of findings 78
5.2
Conclusion 79
5.3
Recommendation s 79
Bibliography
82
Appendix 1
85
Appendix 2
86
CHAPTER ONE
1.0
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Expenditure
control or cost control is part of management control process, in every
organisation.
This process
is very important to any organisation be it profit making organisation or
non-profit making organisation. Thus, 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 wind up. Many researches have been conducted
in the reason for winding up of companies and organisation in which lack of
expenditure control process had found responsible.
Expenditure
control has been defined as the process by which managers utilize effectively
and efficiently, the scarce,
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