An Appraisal Of Revenue Collection Method In Government Establishment

Project and Seminar Topics with material for Banking and Finance

Project and Seminar Topics with material for Banking and Finance


Revenue collection method in most government establishment has over the years been the bane of the old Anambra State government in achieving optimum internally generated revenue for both recurrent and capital development. This forced the government to dissolve most of her boards and commissions in 1981 as well as set Revenue Commission and of investigation and recovery of government funds and property in 1984. Even this system were also upheld by present Military Government in the effort to increase the revenue base of the government.

Sequel to the economic hardship affecting the budget speech emphasized that each state government should diversify its revenue sourange.

Hence, new revenue source were identified such as introducing new products in the catering department, contractors fees, suppliers non-refundable fees, while old revenue sources was increased to meet up with the economic trend. The hospital hopes to collect millions of naira annually from the collection of hospital fees and others from patients.

The survey area was University of Nigeria Teaching Hospital, where 150 questionnaires were administered to the revenue clerks and accounting officers in the hospital. The questionnaire collected information in personal data, maturational devices method of revenue collection.

This study therefore was an attempt to find out how far the university of Nigeria Teaching Hospital, Enugu method of revenue collection achieved the objectives of the hospital. The study sought answers to questions on the methods of collections.

Based on the findings, the following recommendations were made amongst others:

  1. Employment of enough qualitative accounting and revenue clerks
  2. Improvement of the accounting system
  3. Provision of security escort during lodgments
  4. The system of supervisory checks and the role of the internal audit in issuing receipts should be continued.

Chapter One

1.0 Introduction

1.1 Background Of The Study

There is no doubt that Nigeria is blessed with abundant human materials resources but the problem with the country is that government since its independence in 1960 some refused to utilize these resources to its benefit.
The abundance human and materials resources of the country was mismanaged and the country was into foreign debts. Since 1984 emphasis has shifted form external borrowing to local or internal sourcing of the country’s revenue for both capital and recurrent expenditure of the government according to Abubakar 1984 the above necessities by the effect of federal government economic measures especially the imposition of ceiling on the guarantee backing. It could give in respect of state generated external revenue and borrowing.

Achebe 1985/;10 maintained that the dwindling receipt form federal account owing to sharp drop in the price of crude oil fall in total earning form about 141 billion in 1980 and to lower figures. This swindling export earnings and foreign exchange disbursement on imports escalated.

  1. Employment of enough qualitative accounting and revenue clerk
  2. Improvement of the accounting system.
  3. Provision of security escort during lodgments
  4. The system of supervisory clerks and the role of the internal audit in issuing receipts should be continued.

The conclusion of the study is that the hospital achieves its aim and objectives at a high human and materials cost. The system therefore should be reviewed to make it more efficient and cost effective this resulted a decrease in the federal/government revenue allocation to the states and local government.

In the Enugu state in particular the inheritance of a big debt of about 1.83 billion form the civilian administration made local sourcing procedure imperative. The situation compelled the military government of Enugu state group caption Madueke (1984) to suggest the acquisition of revenue locally as the means of raising enough fund for capital development as a result of that the government then commissioned on 20th January 1984 the Enugu state finance and revenue commission which assessed the effectiveness of the existence systems of internal revenue collection and recommended improvements.

Revenue collection in the university of Nigeria teaching hospital is the responsibility of the accounting department of the hospital they are responsible for the recording in financial terms the day to day transactions of the hospital. These transactions and records mainly relate to the receipts and payments income and expenditure and assists and liabilities of the hospital and usually cover transaction with in a particular financial year or other period such as months or quarters within a financial years as may be required.

The financial years of the hospital follows the government fiscal year which is form 1st January to 31st December of each year this case study is carried out assess revenue generation machinery of government university of Nigeria teaching hospital Enugu.

1.2 Statement Of The Problem

Specifically therefore research intends to provide answers to the following questions.

  1. Are accounting records adequately and properly kept in conformity with the objectives of government and accounting standards
  2. Who are the accounting staff of the hospital and how were they recruited or giving appointment
  3. What are the accountability method or who us accountable for what
  4. What are the financial implication of the findings and how on its knowledge help to the improvement of revenue collection process in the university of Nigeria teaching hospital Enugu.

The study will examine the hospital as an enterprise and a very big one in this state for that matter the head of the account department is the assistant director finance who has the over all responsibility for the effective running of the department. He gives reports to the chief executive of the hospital and the chief medical directors.

1.3 Objective Of The Study

In the study we intend to trace the extent of contribution of the university of Nigeria teaching hospital .in the internally generated revenue of the federal ministry of heath the study will equally provide answers to the problem of the teaching hospital as it concerns revenue collection method and investigating why there

  1. Is decreasing revenue collection in government owned establishment
  2. Is poor establishment
  3. Are inadequate accounting system in those government prostrates

1.4 Scope Of The Study

The researcher earlier had the intention to covering and the government owned establishment in Enugu state of Nigeria however time and financial constraints have hindered those intentions. The study is limited to university of Nigeria teaching hospital Enugu. It has been found out by the research the method used by hospital approximate the general practice for the purpose of this study the researcher will make a brief mention of revenue allocation in Nigeria. The role of internal audit in relation to revenue and then pay special attention to internally generated revenue.

1.5 Research Questions

The following are the research questions to be used in the study.

  1. What are the methods of revenue collection being applied by the government owned establishment
  2. How effective are these methods being used
  3. What are the effective application

1.6 Significant Of The Study

It is hoped that the study will be valuable to the hospital management and infact any other government establishment for that matters to appreciate the deficiency inherent in the present method of revenue collection in our teaching hospital the government following the recommendation will modify the same to achieve better results this will turn save the government big financial losses. There must be check and balance otherwise Justics and farness will be ignored by the actions in the accountability process.

It can be believed that if the methods are effective in controlling frauds every naria collected by the government will be adequately accounted for thus the government objectives of health for all the year 2000 might be a reality for the citizen who pays the hospital the hospital bills the study will lead.

It is also believed to the Justification of the revenue being collected which they pay as they will not go into the hands of wrong persons.

Finally this research report will enable students to have an in-depth knowledge of the methods of collecting revenue available to non-profit making organization especially those controlled by government. It will help them to understand the audit of government organization when the government relinguishes such audits over to certified public accountants

1.7 Definition Of Terms

For the purpose of this work an accounting staff or office is used here to mean any person employed by the hospital to perform the duties of a finance officer in the hospital irrespective of the person’s designation or ranks
A revenue clerk is used to mean any person delegated to collect hospital bills and other fees whether the person is an accounting officer or not.

Revenue means total annual income of the hospital generated from hospital bills and charges. A self guaranteed patient is one who is accepted as a reputable and well know in the community and on balance of reasoning is allowed on personal recognition to guarantee herself or himself.

A staff quarantined patient arises where a member of the staff of the payment of the patients bills in case the patient fails to pay MAC means medical advisory committee.
Pauper means a very wretched patient.

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