Evaluation of Financial Control System in the Health Sector of Ghana [A Case Study of Korle Bu Teaching Hospital]
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Date
2012-02-13
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Abstract
Financial control systems have been a critical issue following fraudulent financial reporting and accounting scandals in most health organizations. A proactive preventive approach to the problem requires a critical evaluation of existing financial controls control structures in organizations to determine their capacity to ensure that the organization’s activities are carried out in accordance with established goals, policies and procedures. This study is intended to evaluate the existing financial controls of Korle-Bu Teaching Hospital to know the extent of their effectiveness and efficiency. The outcome of the evaluation process is that some control components of effective financial control systems are lacking in this study. This renders the current control structures ineffective. This study is to appraise the effectiveness of the financial control systems at the Korle-Bu Teaching Hospital to determine whether there exists established financial controls system, evaluate its effectiveness (if any) and to ascertain the challenges being encountered in the enforcement of the financial controls of KBTH. The total population was 304, consisting of 226 accounting staff, 9 auditing staffs and 69 administrative staff. A sample size of 50 respondents was selected and a purposive sampling technique was used to arrive at the figures. The study revealed that, other details regarding to the identification of financial controls within the hospital is quiet essential to the management of the hospital, it indicates that there is a distinction between who prepares the payroll and who distributes payroll cheques, this comes as a result of division of labour among the workers and to eliminate an individual influence on specific procedural involving the control systems of the hospital. The study recommended that there is the need for KBTH to enforce the controls system, and staff should undergo regular training on fraud and misapplication and misappropriation.
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A Thesis submitted to the Institute of Distance Learning, Kwame
Nkrumah University of Science and Technology, Kumasi in partial fulfillment of
the requirements for the degree of
Commonwealth Executive Masters of Business Administration, September-2012