IMPACT OF FUNDS ACCOUNTING ON THE PERFORMANCE OF SELECTED PUBLIC TEACHING HOSPITALS

IMPACT OF FUNDS ACCOUNTING ON THE PERFORMANCE OF SELECTED PUBLIC TEACHING HOSPITALS

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CHAPTER ONE INTRODUCTION

       1.1     Background to the Study

The major objective for the establishment of selected Public Teaching Hospitals separate from conventional universities is to focus solely on some specific subsectors of the economy because of their importance to national development.  In emphasizing the reason for the establishment of selected Public Teaching Hospitals, Obasanjo (2000) states that the need for selected Public Teaching Hospitals to ensure speedy transformation of science and technology in Nigeria was intended to

institutionalized the teaching of science at the tertiary level with a the view to repositioning Nigeria for the challenges ahead. 

It is in a bid to show its commitment to this important sector of the economy, that the Federal Military Government under President Ibrahim Babangida established universities of Agriculture as institutional infrastructure to correct the obvious defects of the colonial paradigm for research, extension and training (Idachaba, 1988).

Universities of agriculture were established separate from the general universities against the background to the weaknesses and defects of existing network of faculties in federally – owned general universities and state owned universities; extension services of state ministries of agriculture, the agriculture development projects and a multiplicity of tertiary institutions offering subdegree programmes in agriculture (Idachaba, 1988).  

It is against the above and many other backgrounds, that the universities of agriculture were established with the aims of providing prompt solution to farmers’ practical problems, raising farm output and incomes and accelerating the drive towards national food sufficiency (Idachaba, 1988).

The Federal Universities of Technology were also established to give effect to the nation’s drive for the much-needed self-reliance in science, engineering and technology. 

The establishment of selected  Public Teaching Hospitalsis a step in the right direction.  Whether the good intentions will materialize depends largely on the translation of declared political intent of creating the universities into sustained political commitment and the management of the available funds that will impact positively on selected  Public Teaching Hospitals. It hardly needs to be emphasized that as adequate funding holds the key to the success of every establishment, so it is to selected Public Teaching Hospitals.  It was in a bid to emphasize the need for adequate funding to selected Public Teaching Hospitalsthat Idachaba (1988), asserts that the choice that must be made is either to continue with the old time of exhortations, platitudes and defective existing institutional structures or back up declared political intent in the new approach to agricultural research, training and service with required funding to make a positive revolutionary difference. 

         Although adequate funding of selected  Public Teaching Hospitalsin Nigeria is important, but the management of available funds by selected Public Teaching Hospitalsis much more important.  Every organization has an objective that prompted its formation.  It is the pursuance of the goal that necessitates the acquisition of funds.  To achieve this purpose of its existence, the use of funds must not be left to chance.  Consequently, funds are of no value if they are not applied to the attainment of specific goals; not just any goals but goals, which are central to institutions reasons for existing.  Obasanjo (2004) stress that “Technological oriented universities in the country must show-case the result of their research work to justify the huge government investment on them”.  

       1.2     Statement of the Problem

The establishment of selected  Public Teaching Hospitalsseparately from general purpose universities is to engage in research and development which have been identified as indispensable to national economic development. However, complaints from the management of selected Public Teaching Hospitalsshow that funds allocated to these universities are inadequate (Idachaba, 1988). According to Babangida (1998), government on its part has frowned at the poor management of funds in federal universities. The government has also called on selected  Public Teaching Hospitalsto justify the huge government investment on them (Obasonjo, 2004).

Consequently, could the challenges of physical facilities, graduate output and research output in our universities be that of poor funding or management of available funds? This is very important as no organization as observed by Mikailu(2002) can succeed or even survive without sound decision on the management of its resources.

In view of the above, the question then is, has the Funds accounting in selected  Public Teaching Hospitalsin Nigeria any significant impact on the physical facilities, research and number of Patient’s Wellbeing? This research work is set out to examine the impact of Funds accounting on the performance of specialized

federal universities in Nigeria.   

       1.3     Objectives of the Study

The overall objective of this study is to examine the impact of Funds accounting on the performance of selected Public Teaching Hospitals in Nigeria. The study is designed to achieve the following specific objectives.

(i)               To find out whether funds has been managed effectively in Nigerian selected Public Teaching Hospitals.

(ii)             To determine the impact of Funds accounting on the physical

facilities of selected Public Teaching Hospitals in Nigeria. 

(iii)          To ascertain the effect of Funds accounting on research output in selected Public Teaching Hospitals.

(iv)           To determine the contribution Funds accounting to the number of Patient’s Wellbeing in selected Public Teaching Hospitals. 

       1.4     Research Questions

In view of the first objectives above, the study shall address the following research questions:

(i)               Are available funds for selected Public Teaching Hospitals prudently accountable?

(ii)             Is there established and effective internal control system to ensure effective accountability of available funds?

(iii)          Are there any impact of Funds accounting on the physical facilities, research and number of Patient’s Wellbeing?

1.5   Research Hypothesis 

In view of the objectives of this research, the following hypotheses have been formulated in null form:

(i)               Funds accounting has no significant impact on the physical facilities of selected Public Teaching Hospitals.     

(ii)             Funds accounting has no significant impact on the research output of selected Public Teaching Hospitals.

(iii)          Funds accounting has no significant impact on the number of

Patient’s Wellbeing of selected Public Teaching Hospitals. 

       1.6     Significance of the Study

The study on the impact of Funds accounting on the performance of selected  Public Teaching Hospitals will be relevant to all stake holders like the federal government of Nigeria which is the sole financer: the management of selected  Public Teaching Hospitals and private sectors since to the best of my knowledge no research work has assessed the impact of Funds accounting in selected Public Teaching Hospitals using physical facilities, number of graduate and research as a proxies of performance. 

       1.7     Scope of the Study

 This study emphasizes on examining the impact of Funds accounting on the performance of Nigerian Selected Public Teaching Hospitals.  The study covers only selected Public Teaching Hospitals which are made up of University of Benin Teaching Hospital (UUTH) and University of Benin Teaching Hospital.


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