AN ANALYTICAL STUDY OF EXPENDITURE CONTROL MEASURES IN GOVERNMENT OWNED AND PRIVATE
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.
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 resource in the achievement of the organisational goals. At this juncture, let us look at expenditure and control from separate perspective. Expenditure is the total amount spent on the process of trying to achieve a particular organisational goal. Control means to order, limit, instruct or rule something or someone’s actions. It is used by either government officials or organisation managers to make restrictions on wages increases, immigrate credit
and so on (which are all expenditure). As regards, this research work, which is the comparative study of expenditure control methods in government and privately owned Hospitals, A study of the Lagos University Teaching Hospital Lagos (LUTH) and Toronto Hospital and Maternity Onitsha; this implies a comparative study of non-profit making organisations, since LUTH is government owned Hospital while Toronto Hospital is privately owned Hospital as a category of profit making organisation. Nonprofit making organisations are characterized by the following: There is neither a conscious profit motive nor an expectation of earning net income. No profit of any excess of revenue over expenditure is distributed to those who contributed support through taxes and voluntary donations.