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Custom Operating and Capital Expenditure Budget essay paper sample

Buy custom Operating and Capital Expenditure Budget essay paper cheap

 

HEALTH CARE BUDGET

 

EXPECTED INCOME AND EXPENDITURE FOR THE COMING YEAR

 

 

 

INCOME

USD.

Patient bills

297,277

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

TOTAL INCOMES

482,293

 

 

 

 

EXPENSES

 

Next  anniversary

12,750

Welfare

10,050

Utility

2000

Communication

3,300

Library

1000

Transport

8,010

WHO Remission (15% contribution)

50,027

Stationery

4,368

staff Allowance and salary

171,000

Rents on the premise

9,777

Registration renewal

31,500

Guest Speaker

9,500

Public Address

300

cleaning

8,269

Equipment and drug purchase

130,000

Bank Charges

1,000

Miscellaneous

11,100

TOTAL EXPENSES

463,951

Surplus/ (Deficit)

18,342

NET TOTAL

482,293

 

 

Assumptions

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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