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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.


Approval page iiCertification page iiiDedication ivAcknowledgement vAbstract vii

Chapter One

1.0 Introduction 11.1 Background Of The Study 11.2 Statement Of the Problem 41.3 Objectives Of The Study 61.4 Research Questions 61.5 Formulation Of Hypotheses 71.6 Significance Of The Study 81.7 Scope Of The Study 91.8 Limitations Of The Study 91.9 Definitions Of Terms 10

Chapter Two

2.0 Review Of Related Literature 122.1 Introduction 122.2 Overview Of Expenditure Control 122.3 The Expenditure Control Methods 142.4 Internal Auditing Overview 192.5 Management Audit 252.6 Cost Benefit Analysis 272.7 Quantitative Models For Expenditure Control 282.8 Items Related To the Income Generated In A Hospital 322.9 Items Related To The Expenditure Of A Hospital 362.10 The Expenditure Control Method That Are In Application 372.11 Vote Card Method of Expenditure Control 42

Chapter Three

Research design and Methodology3.0 Introduction 453.1 Sources of Data 463.2 Research Instrument 473.3 Reliability and Validity of Research Instrument. 483.4 Population 493.5 Sample Size/Technique 503.6 Administration Of Research Instrument 523.7 Method Of Data Analysis 523.8 Decision Criterion For Validation Of Hypotheses 53

Chapter Four

4.0 Data Presentation and Analysis 544.1 Data Analysis/Presentation 544.2 Testing Of Hypotheses 674.3 Discussion of Findings 75

Chapter Five

5.0 Summary of findings, Conclusion and Recommendations 785.1 Summary of findings 785.2 Conclusion 795.3 Recommendation s 79Bibliography 82Appendix 1 85Appendix 2 86


1.0 INTRODUCTION1.1 BACKGROUND OF THE STUDYExpenditure 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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