|HEALTH CARE BUDGET|
|EXPECTED INCOME AND EXPENDITURE FOR THE COMING YEAR|
|Income from the government||7,085|
|Fees levied in the labs||4,820|
|Charges on ambulance rents||26,766|
|Moneys from seminars and workshops||1,345|
|Funds from international bodies||145,000|
|WHO Remission (15% contribution)||50,027|
|staff Allowance and salary||171,000|
|Rents on the premise||9,777|
|Equipment and drug purchase||130,000|
It is assumed that this institution has steady clients who have discovered the need for the services offered at the station. The total income expected is 482,293 USD. The institution will use 463,951 for its expenses and in turn save 18, 342. All the moneys are set in USD.
The major drawback of internal control system is cost. The cost should not exceed the benefits. Designing and establishing an effective internal control system may take a longer duration of time and resources. Moreover the effectiveness of the internal control system is measured by the internal and external auditors. The audit fees are always very high that some companies may not afford.
Internal control does not provide absolute results of meeting the goals and objectives set. In case the company decides to provide reasonable assurance of doing so, they will strain on cost and benefit analysis. Therefore the company may provide only what they can afford which will limit the internal control system.
The third limitation of internal control is caused by the mistakes that are likely to occur during implementation of the whole process. The checks and balances put in place may not be met in the organization. Correction of the mistakes may be a long process that may not be met. The management may override the existing internal control leading to ineffectiveness. This is always very common in the most fraud schemes. In these schemes, the management can manipulate the financial accounts without being noticed (Anderson, 2008).
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