ACCOUNTING AND AUDIT PROCEDURE IN THE GOVERNMENT PARASTATALS (A CASE STUDY OF UNIVERSITY OF ILORIN TEACHING HOSPITAL)
TABLE OF CONTENT
TITLE PAGE PAGES
LIST OF TABLE IV
CHAPTER ONE: INTRODUCTION
BACKGROUND OF THE STUDY 1
.1 OBJECTIVE OF THE STUDY 2
.2 SIGNIFICANCE OF THE STUDY 3
.3 SCOPE OF THE STUDY 3
.4 LIMITATION OF THE STUDY 4
.5 RESEARCH METHODOLOGY 4
.6 PLAN OF THE STUDY 5
2.1 MEANING OF PARASTATALS 7
2.2 ESTABLISHMENT OF UNIVERSITY AND THEIR TEACHING HOSPITALS 7
2.3 AUDITING IN RELATION TO ACCOUNTS 9
2.4 ANNUAL STOCK TAKING 10
2.5 APPRAISAL OF THE PERFORMANCE OF THE RETURNS 11
2.6 USERS OF AUDIT INFORMATION 12
3.1 INTERVIEW 15
3.2 QUESTIONNAIRE 16
3.3 OBSERVATION 16
4.0 FINDINGS 18
4.1 HISTORICAL BACKGROUND OF UNIVERSITY OF ILORIN TEACHING HOSPITAL 18
4.2 ORGANIZATION STRUCTURE 20
4.3 ACCOUNT PAYABLES 21
4.4 SOURCES OF FUND: CAPITAL STRUCTURE 23
4.5 AUDITING PROCEDURE AT UNIVERSITY OD ILORIN TEACHING HOSPITAL 23
4.6 AUDIT QUERRY 26
4.7 INTERNAL CONTROL 27
4.8 PROCEDURE 28
5.1 PROBLEMS 31
5.2 SUMMARY 32
5.3 CONCLUSION 33
5.4 RECOMMENDATIONS 33
1.0 BACKGROUND OF THE STUDY
Auditing may be defined as a systematic examination testing and confirmation of accounting record and routines to verify their accuracy and compliance with established concept, principle standard and legal requirement.
However, the Macdonald and Howard LR principle of auditing as a careful examination of the books of account and vouchers of a business, a will enable the auditor to satisfy himself that the balance sheet is property drawn up. So as to give a true and fair view of the state of affairs of the business and whether the profit and loss for the financial period according to the best of his information and explanation given to him and shown by the books of account and if not in what respect he is not satisfied.
1.2 OBJECTIVE OF THE STUDY
The objective of the study of auditing procedure in government parastatals are as follows.
1. To get adequate and relevant information about the financial aspect of government parastatals.
2. To build new knowledge gained into these research for future use into operation of government parastatals.
3. to find out the extent to which those who elected to oversee the affairs of government parastatals in the teaching Hospital are able to account for their stewardship.
4. To make suggestion and recommendation as to new finding relevant to develop of most of hospital in Nigeria
5. to be able to detect likely error and irregularity and able to make necessary correction as not to affect the government set up.
1.3 SIGNIFICANCE OF THE STUDY
The significant of the study could be a sort of enadicating the persistent increase in the misappropriation of fund in an organization. It could also provide job opportunity for graduates seeking employment. Because the system would entails employing a qualified and competent staff to handle the auditing exercise. Because in any organization set up, no matter how large or small it should exposed it self to verification of its various books of account so as not to give rooms to misappropriation by workers.
1.4 SCOPE OF THE STUDY
The study is to avail a layman the opportunity to have a knowledge of how financial accounting and auditing interacts, check and balance each other.
The scope of the study is the financial department of university of Ilorin Teaching Hospital.
1.5 LIMITATION OF THE STUDY
The major limitation of the study are time constraints, financial constraints and difficulty in obtaining adequate and up-to date information necessary for the research work.
The limitations mentioned above taken into consideration, the research work on accounting and audit procedure in the government parastatals on the university of ilorin teaching hospitals. But reference can be made from the findings if this research to other health institutions that fall within the public health sector particularly the other teaching hospital in the country.
1.6 RESEARCH METHGODOLOGY
For the purpose of adequacy of data needed for this project, the researcher used interviews schedule, questionnaire method and observation method.
1.7 PLAN OF THE STUDY
The study is made up of five chapters.
Chapter one deals with general background of the study, this involve the introduction, objectives of the study, significance of the study, scope of the study, limitation of the study, research methodology, the limitation of terms and plan of the study.
Second chapter deals with meaning of parastatals, establishments of university and their teaching hospitals,. Auditing in relation to accounts, annual stock taking and appraisal of the performance of the returns, users of audit information i.e internal and external user.
The third chapter deals with interview, questionnaire and observation.
The fourth chapter deals with findings his includes historical background of university of ilorin teaching hospital, organizational structure, account payables, sources of fund i.e. capital structure, auditing procedure at university of Ilorin teaching hospital, audit query, internal control and procedure
Lastly chapter five contains the problems, summary,
2.1 MEANING OF PARASTATALS
Parastatals are enterprises which government has total control over its policies, they are set up either for profit purpose or to render services. They engage in goods and services for sale to the public examples are NITEL, NEPA, NIGERIA AIRWAYS and so on.
2.2 ESTABLISHMENT OFUNIVERSITY AND THEIR TEACHING HOSPITAL
The university of ilorin teaching hospital formally came into existence on 2nd May 1980 when the federal government set up its board of management. The board and those of the eleven teaching hospitals were inaugurated on 13th June,1980 by the them honorable minister of Health, Mr. Daniel Ugwu, A unique if not an intriguing feature in the birth of the hospital was the fact that there was actually no hospital in the physical sense for the pioneer board to run. This was a great challenge which later provide to be an Herculean task.
The first major assignment tackled by the board was therefore how to secure the release of the ilorin General and maternity Hospital to the management board.
The maternity Hospital, Ilorin was built by the colonial government in 1937 as a cottage hospital. It was built along the rail line for wounded soldiers in the word war to get quick treatment. In 1942 the hospital started the mind-wifery grade II school.
The ilorin General Hospital was built by the them government of Northern Region in 1955 to take care of the health needs of the people of ilorin provides.
The university of Ilorin teaching hospital like other teaching hospital in the country has the following set objectives to fulfill.
1) To train medical and paramedical personnel
2) To deliver health care services
3) To serve as federal centre for other hospitals
4) To conduct research.