1.1 Background of the Study
Financial management can be regarded as the process which ensures that financial resources are obtained economically and used efficiently and effectively in the accomplishment of the desired goals. This processes involves monitoring and analyzing public institutions financial conditions, general and special account, management of budgetary procedures, financial statements and reports, payroll/income tax calculation and salary payments, and managing cash flow.
Prior to the emergence and introduction of computer all these processes and activities were done manually. The expansion of the University of Nigeria Teaching Hospital (UNTH), Enugu, just like any other public institution, will not only intensity but also diversify the financial operations thereby making the activities increasingly difficult and wearisome. The volume of transaction has already increased to a level that requires automation.
Convincingly, the field of data processing was not easy to get by and so over the years (in the field of data processing with utmost speed), mankind has searched for the extra-ordinary. At such time came the emergence of the computer which is widely used virtually in all areas of human endeavor.
The increase in the use of computer in both public and private institutions of the world is an undisputable conclusion for efficiency, speed and accuracy of its operations in achieving results.
However, the manual processes and procedures of financial resources allocation and utilization in our contemporary days have been confronted with consistent problems of errors and wastage of time which are traceable to human mistakes and shortcomings.
The establishment of a sustainable, manageable, reliable and flexible financial management system for UNTH to curb these problems inherent in the existing system is the target of this project work. Such a financial management system will support all operational accounting procedures as well as financial management.
1.2 Statement of Problem
The problems facing the financial management activities in University of Nigeria Teaching Hospital, Enugu include:
The consistent prevalence of errors in calculations carried out on financial reports which are traceable to human mistakes and shortcoming.
Improper handling of financial statement, reports and records as a result of the problem of space for storage and retrieval purposes which leads to many files being misplaced.
The interval or time consumed in analyzing and ascertaining the accuracy and approval of financial statements and accounts which in turn affects decision making and policy formulation.
The fore mentioned challenges in UNTH prompted the researcher to embark on this study with the intention of proffering solutions to them.
I was motivated to embark on this research with a view to design and implement a computerized financial management system they will enhance finance management in UNTH Enugu.
1.4 Aims and Objectives
The aim and objective of this study is to minimize and if possible eradicate the problems or errors being made by human beings in the financial management of UNTH. This will be achieved by designing and implementing a sustainable, manageable and flexible computerized financial management system.
The proposed automated financial management system will ensure that financial records are properly stored thereby preventing them from getting lost since these records will be used in the future especially when making or planning for budget. Also the system will ensure that accurate, faster and reliable calculations are carried out on reports without any errors of any sort.
1.5 Purpose of the Study
Computerized financial management system will remove repetitive, inefficient processes and unclear procedures and provides adequate information supporting financial decision making this the system will not only enable the institution to secure its resources against dubious minded managers but will also boost its growth,
Finally, the project work is also to serve as a reference or guide for future researches.
1.6 Significance of the study
As a result of the complexity of the organization in question as well as the financial management activities, this research only considers the properly monitoring of internally generated funds, its expenditure and disbursement using computer option to control it.
Encourage Initiative: Management encourages initiative to make their own plans and also to implement these plans.
Facilitates growth and expanses: Management make optimum utilization of available resources and reduces wastages and increase efficiency.
Reduces wastage: Management reduces the wastage of human, material and financial resources.
Increase efficiency: Management uses many techniques to increase returns and to reduce cost.
1.7 Organization of the work
The research study has been arranged in the following order. Chapter one this chapter titled in introduction is organization as follows: Background of the study, statement of the problems, objectives of the study, organization of research, and Chapter two this chapter titled in literature review is organization as follows: Concept of Financial management, Types of Financial Management, External versus Internal control, Structural versus Procedural Controls,Concept of Financial Management System and Chapter three this chapter titled in research methodology is organization as follows: Problems of the Existing System, Justification of the New System, Design consideration, Input Specification and Design, Output Specification and Design, Design Architecture, Program Organization and Chapter four this chapter titled in Implementation and evaluation is organization as follows: System Hardware Requirement, System Software Requirement, Data Source, Implementation Procedure, System Algorithm, Sample Implementation Input Snapshot, Sample Implementation Output Snapshot, Evaluation of Result, Discussion of Results and Chapter five this chapter titled in discussion and conclusion is organization as follows: Summary of Results, Conclusion, Recommendation.
1.8 Definition of Terms
Financial Control: This is defined as a processes of making which make sure that financial resources used in running an organization are obtained and efficiently utilized in the accomplishment of the set objectives or desired goals.
Internal Control: Internal control is defined as “Not only internal check and internal audit but the whole system of controls, financial and otherwise, established by the management in order to carry on the business of any the company in an orderly manner, to safeguard its assets and secure as far as possible the accuracy and reliability of its records.
Internal Check: This is defined as the allocation of authority and work in such a manner as to afford checks on the routine transactions of day-to-day work by means of the work of one person being proved independently by another, or the work of a person being complementary to that of another.
Budgeting Procedures: This refers to practices. Processes, institutional arrangements, documentation, norms and conventions governing budget preparation, approval, implementation, appraisal and review
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