CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Record keeping in business has been an old practice right from time. Record keeping helps businessmen and owners to plan on how their activities will be carried out and how the activities have been performed and comparisons made among different periods in accounting. The need of record keeping cannot be over-emphasized, in different organizations’ accounting systems and procedure in record keeping vary. Even though system and approaches may differ, they still aim at the same thing, i.e, producing accounting information necessary for control and decision making. Each organization is unique and so plans its operations and procedures that suits its purpose. However, standard procedures should apply to both small and big organizations. Cash and cheque record must be receipted written in both words and figures. Proper account should be given by the clerks entrusted with it. Also cash and cheque disbursements must be duly authorized and carried out according to the procedure aid down in the organization, proper voucher together with supporting documents should be attached to vouchers with appropriate signatories. In an organization where there is no proper documentation of their financial transaction and also measure of control on the activities of its sta can not maintain a sound accounting system. Parklane General Hospital as one of the institution was established in 1930 as a Nursing home for colonial masters. Nigerians were not treated or allowed there until, 1952 when the first civil servants resident in GRA were allowed and treated in the Nursing home.
In April 1967, during the Nigeria civil war, the Nursing home was converted into a general hospital. In May 1967, the first expansion work started. By the year 1970, the hospital had 200 beds and between 1978 and 1982, the surgical ward, eye clinic, pediatric ward, plant houses, mortuary and four new blocks of consulting rooms in the OPD were constructed and commissioned. In 1985, a new phase of development started with contracts awarded for a maternity ward. In the same year surgical ward and ante-natal ward were completed and commissioned while the marketing ward was still under construction.
In August 1999, a Nursing School was opened in the hospital on a temporal basis, using the proposed gynecological block. Block of 5 bungalows were completed for house officers, awaiting the accreditation of the hospital for training of the house officers. In 2005, ESUT, relocated to parklane and was named ESUT college of medicinal teaching hospital. In April 2006, the law establishing ESUT teaching hospital parklane GRA was signed. The institution is now known as ESUT teaching hospital, parklane GRA Enugu state. Therefore, this name will be use in this research work.
1.2 STATEMENT OF THE PROBLEM
From observations and reports of some patients and staff they have been pointing at the same thing. Which are non documentation of some financial transactions, inability to have perfect control on the activities of the staff, cases of misappropriation of fund, and other irregularities which contribute to unsound accounting system in the institution. Therefore the problems includes:
1. Non documentation of some financial transaction.
2. No proper control measure to ensure a sound accounting system.
3. The extent personal interest, overlapping of job and the exercise of authority, affect accounting system in ESUT teaching hospital, Parklane GRA.
4. To what extent does the management rely on the work of the accountant, internal auditor and revenue clerks.