ABSTRACT

The main objective of this study is to determine effect ofInternal Control Systems on Financial Performance of private hospital in Nigeria, using Rosevine Hospital in Umuahia, Abia state as a reference point. Survey design was adopted. This method involves the normal gathering, analysis and interpretation of a set of data so as to explain the underlying factors that surrounds the problems that triggers the research. Data for this work was sourced using primary sources. The Rosevine Hospital was contactedfor the list ofmanagement and staffin office. To be precise, the researcher interviewed a total of Fifty (50) persons comprising 1 Doctor 27 nurses in the hospital and 15 Medical Consultants, 2 Accountants 5 medical Attendants and 8 Cleaners. Both open and close ended questionnaire were carefully prepares and administered to all selected respondents to complete those questions contain in the questionnaire. Data was then coded and checkedfor any errors and omissions (Kothari, 2007). Frequency tables, percentages and means were used to present the findings. Responses in the questionnaires were tabulated, coded and processed by the use of a computer Statistical Package for Social Science (SPSS) program to analyze data. The study concluded that the control environment, risk assessment, control activities and information and communication as indicators of internal control systems have a significant influence on the financial performance of the private hospitals. The variables explained 99.1% of the changes in financial performance ofthe private hospitals. This study therefore recommended that for the institutions to perform well financially, their internal control systems should be improved, cultivated and implemented diligently. There is needfor the employees responsible for preparation offinancial statements and reporting to he transparent and honest and also be held accountable for any misreporting.