Evaluation Of Internal Control Systems In The Administration Of Wages And Salaries In Government Parastatals (A Case Stud Y Of Selected Heal Th Institutions).

ABSTRACT

Internal control system is a pivot on which a business organization revolves and is therefore inevitable in its survival. This study was tailored towards evaluating internal control systems of government parastatals of which the University of Port-Harcourt Teaching Hospital and Federal Medical Centre, Umuahia was used as the sample population. Relevant literatures were reviewed and the data analysis technique had been Chi-square (X2), simple percentage and descriptive analysis technique. The following findings were made: There is an operative internal control system in existence in the parastatal tinder study. The system of control is adequate as evidenced by the questionnaire responses. Result from hypothesis reviewed the following: There is significant relationship between sound internal control system and financial accountability. There is no significant difference between salaries payrolled and salaries paid. The following recommendations are deemed necessary based on few personal interviews: all wages should be paid through c-payment notwithstanding the amount to allow for authenticity of wage payment. The quality of staff should be enhanced through training, seminars on internal control procedures because of the fact that compliance with laid down internal control procedures has a significant effect on financial accountability.