A Comparative Study of Expenditure Controls Methods in Government Owners and Privately Owned Hospital
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Chapter One of A Comparative Study of Expenditure Controls Methods in Government Owners and Privately Owned Hospital
INTRODUCTION
Introduction organisation with exception of every minute and unorganized ones, there is a process known as expenditure control or cost control which is a part of management control process.
This process is very important to any organisation be it a profit maximizing organisation or non profit maximizing organisation. Thus is because 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 fold up
(ie liquidation) Many research have bee conducted in the reason for folding up of companies and organisation in which lack of expenditure control process had been found responsible.
Expenditure control has been defined as the process by which managers utilizes effectively and efficiently the scarce resources in the achievement of organisational goal. At this juncture let us look at expenditure and control from a separate perspective.
Expenditure: It is the total amount spent on the process of trying to achieve a particular goal. This amount spent might be regained if the goal is not achieved.
Control: Is the fact of making things world in a way the is required. It is also the used by either government of official organisation to make restrictions on wages increases, immigrate credit and so on (which are all expenditure)
As regards to this project topic which is a comparative study of expenditure control methods in governments ownes and privately owned hospitals. A case study of university of Nigerian Teaching Hospital, Enugu. (UNTH) and Toronto hospital and Maternity Onitsha.
This implying a comparative study of non-profit-making organisations, since UNTH is government owned hospital while Toronto is privately owned hospital as a category is of non profit making organisation are characterized by the following:
a. There is neither a conscious profit motive nor an expectation of earning net income.
b. No part any excess of revenues over expenditure is distributed to those who contributed support through taxes and voluntary donations.
c. Any excess of revenue over expenditure that results form operations in the short run is ordinarily used on later years to further the purpose of the organisation.
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