AN EVALUATION OF INTERNAL FINANCIAL CONTROLS IN PUBLIC HOSPITALS
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
Financial controls are a critical part of any financial system. They ensure that resources of the organization are being correctly and effectively used and activities are correctly and accurately reported. Poor controls can lead to the risk of resources being used inefficiently or being subjected to theft, fraud or abuse. Controls protect both the organization and its staff. The absence of good financial controls could be detrimental to the smooth operation of the organization and subsequently its survival.
Financial control focuses on controlling the organization’s financial resources. Most organizations rely on financial, operating, and nonmonetary budgets. Financial statements, various kinds of ratios, and external and internal audits are also important tools organizations use as part of financial control.
Again, internal financial controls are enforced better in profit organizations compared to nonprofit organizations. Therefore, there is the need to assess effectiveness and
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