Assessment of Internal Control System in Government Establishment
CHAPTER ONE
Significance Of Study
This research will be of invaluable importance to the online management and staff of the University of Nigeria Teaching Hospital. The management will be exposed to the specific objectives of internal control and also help them to close the gaps and weakness inherent in their adopted internal control system
CHAPTER TWO
LITERATURE REVIEW
THE CONCEPT OF INTERNAL CONTROL
A system of internal control consists of policies and procedures designed to provide management with reasonable assurance that the company would achieve its goals and objectives. These policies and procedures are often called controls, and collectively they comprise the entity’s internal control. The operational standard practices committee of the UK defined internal control as the whole system of controls, financial and otherwise, established by the management in order to carry on the business of the enterprise in an orderly and efficient manner, ensure adherence to management policies, safeguard the assets and secure as far as possible the completeness and accuracy of the records (IAG6). Dandago (2003) observes that the Internal Auditing Guidelines’ (IAG6) definition can be summarized briefly as the entire control measures which the management puts in place to make sure that all aspects of the organization: finance, assets, records, etc. are effectively monitored and managed for the achievement of organizational objectives. He went further to say that these controls are set up to ensure that the possibility of fraud or error and all kinds of material defects and irregularities are prevented or substantially reduced. Hence, the overview of internal control centers around the various procedures to be followed in order to make an organization effective and put it on course for the achievement of its immediate and remote objectives.
Similarly, Woolf (1985) observes that the striking thing about the definition is it’s all- embracing nature and it is clear that internal control is concerned with the control operative in every area of corporate activity, as well as with the way in which individual controls inter-relate. Extending the comment further, one can posit that internal control in organization should comprise of all types of control measures i.e. both financial and non-financial, record and non-record related, which must be working harmoniously to ensure the attainment of organizational objectives and the safeguarding of resources.
Agbelusi (1986) defines internal control as a plan of organization with methods and measures adopted within a business to: safeguard the assets of the organization; check the accuracy and reliability of the accounting data;
CHAPTER THREE
RESEARCH METHODOLOGY
Research Design
This is a descriptive research design aimed at finding out the internal control system and managerial tools for proper accountability in Nigeria parastatal.
Area of the Study
The area of this study is Nigeria University teaching hospital Enugu, Enugu state. Bounded in the north by Kogi state and in the south by Abia state and in the west by Anambra state and in the East by Ebonyi State.
CHAPTER FOUR
DATA ANALYSIS AND RESULT PRESENTATION
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
SUMMARY OF FINDINGS
The research sought to describe the internal control polices at University of Nigeria Teaching Hospital, Enugu. The findings of the research revealed that the internal control policies that exist in the Hospital include strict supervision by heads of departments, authorization by the rector and adequate segregation of staff duties. Also the study revealed that all cash received are accounted for, and all payments are supported with valid receipts. .
Secondly, the research sought to find out if the employees in the Hospital are aware of the internal control policies. The findings of the research revealed that, employees are aware of the fact that the Hospital has an internal audit department and they are comfortable with it. Again, the study revealed that employees have sufficient knowledge of control procedures applicable to their duties.
Conclusion
From the study, it is resolved that University of Nigeria Teaching Hospital, Enugu has well designed control system to guide its operations. Thought the institution prohibits the overriding of controls, according to the study, the findings identified that management is task oriented and sometimes use positions to get work done without following the laid down rules. This study supports the works of the Tread Way Commission (1985), that top management must create a control environment and that the audit committee reviews management work as well as the internal audit role creating an atmosphere of control within the organization. In the whole, even though there have been few departments from effectively implementing internal controls in University of Nigeria Teaching Hospital, Enugu, the researcher concludes that internal control systems to an extent are effective in the institution
Recommendations
Although good internal control can be expensive, the cost involved would be offset by the benefit to be received from it such as protection of assets and prevention of errors. The following are the recommendation for the management of University of Nigeria Teaching Hospital, Enugu.
The management of the Hospital should as matter of urgency emboss the Hospital‟s name on all assets and update the fixed asset register thereon to safeguard all assets against pilfering and other irregularities.
The internal audit team of the Hospital should develop structure and consistent visits to all areas of the institution in order to keep all employees alert so as to eliminate any hidden transactions that may affect the institution‟s aims and objectives.
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