ACCOUNTING SYSTEM AND MANAGEMENT OF RESOURCES

MANAGEMENT OF RESOURCES

The aim of management is to establish an environment in which people can

accomplish as much as possible desired goals with the available resources.
Managers often operate in resource constrained environments and have to strive to
provide quality health care with the limited available resources. Decentralisation
empowers managers at peripheral levels to make decisions on resource allocation
and utilization. Hence it equips them with the skill, knowledge and attitude
required for effective resource management. Managers can make a difference at
their level.They would be able to design an innovative,cost effective and efficient
health care interventions and safe guard their limited resources. Effective
management imparts the knowledge and judgement needed by managers. Without
appropriate development, managers may lack the capability to best deploy and
manage their resources.

Vital health resources include

A. Human resources
B. Money
C. Time,
D. Space,
E. Information,
F. Material.

The aim is to bring together and develop into an effective organization the men and
women who make up an enterprise and having regards for the well being of
individual and of the working group to enable them to make their best contribution
to its success using cost effective and cost benefit analysis.

COST EFFECTIVE ANALYSIS

This is a technique that enable the manager to look at any given outlay of money or
resources and ascertain which method or combination of methods to achieve the
best result. It can show which method or combination of methods that can
minimize cost.
COST BENEFIT ANALYSIS

This is a technique used by economists to make rational decision. i.e, to determine

whether a particular investment should go ahead considering the cost and benefits
not necessarily in terms of money. It helps us to determine whether scarce
resources should be used after taking account of time of maturity of a project.

FUNCTIONS OF PERSONNEL MANAGEMENT

EMPLOYMENT

This has to do with man power planning, recruitment and selection, appraisal,
discipline, promotion, termination, transfers, maintaining personal records and
statistics.

EDUCATION AND TRAINING

Staff development training within the organization, training outside the

organization, induction courses etc.

WAGES AND SALARY ADMINISTRATION

This involves choice of payment system, job evaluation, monitoring of progress

and differentials, work-study practices, and remwards for better performance.

COMMUNICATION

Formal and informal communication at all levels

WORKING CONDITIONS

This involves choice of working conditions, interpretation of labour regulations,

preparation of staff manuals, conditions of service and interpretation of
establishment circulars.

NEGOTIATION

Negotiation on wages and working condition procedures for avoidance and

settlement of disputes
HEALTH AND SAFETY

Ensuring compliance with rules and regulations, supervising arrangements for the
prevention of accidents,organizing safety committee meeting, arrangement for
proper medical care, health insurance scheme and recognition of sick leave
certificate, re-employment of employee after long period of sick leave etc.

WELFARE

Provision of social and recreational facilities, advising employees on their

individual personal problems, administering anteen policy etc.

Material resources including money, time and space should be equitably

distributed to the head of units/ departments, organizations.

Proper books of account should be maintained for easy auditing . Excessive waste
should be avoided as much as possible. Money meant for a particular project
should not be diverted for another. Every head of unit should be accountable to the
head of the organization/manger. The organization must keep to the policy in terms
of time and space. All appointments must be observed as scheduled and
spaceconserved for future projects.

ACCOUNTING SYSTEM

An accounting system is a system that is employed in a company to organize

financial information. It can be either manual or computerized. The main reason
for using an accounting system is to keep track of expenses, income, and other
activities.

An accounting system allows a business to keep track of all types of financial

transactions, including purchases (expenses), sales (invoices and income),
liabilities (funding, accounts payable), etc

ACCOUNTING SYSTEM IN PRIMARY HEALTH CARE

This is a systematic procedure for recording and interpreting financial transactions
in primary health care organisation.

PRINCIPLES OF ACCOUNTING

Dual concept (double entry)

Materiality concept

Business entry

Actual concept

Going concept

TYPES OF ACCOUNT IN PHC

Impress account ing /stock accounting

Budgetary allocation(ledger account) cost accounting

ACCOUNTING TERMINOLOGIES

Asset is a property owned by an individual or an organisationeg money, building

etc

Classification of assets

current asset: are moveable property owned by an organization which can easily be
converted into cash eg cash, debtors, stocks and materials

Fixed assets: are non moveable property owned by an organisation which are
permanent in nature eg building, land etc

Liabilites: are properties outside the organisation but brought into the
organisationfor its use which can be legally claimed by an outsider. (actual owner)

Classification of liabilities
Short term liabilities: are properties that are payable over a short period of time eg
three months to one year

Long term liabilities: Are properties that are payable over a long period of time eg
four years or more

Folio: Refers to number of pages in a ledger, or voucher number or serial number

for transaction

Debit DR: Refers to gain, income or amount received into the organisation

Credit CR: Refers to the loss , issue made by an organisation

Debtor:is a person or an organisation that gives out money or material

Creditor:is a person or organosation that receives gain, money or material etc

Balance: difference between total credit and debit

Expendable: Are consumable materials which are current in nature of account

operation eg drugs, bandages.

TYPES OF ACCOUNT BOOK

Cash book: is a book of accounting that shows detailed entries received and
payment in double entry system

Invoice: is a paper document showing showing detailed entries of items soldin

terms of description, quantity per unit price and total amount eg receipt.

Stock account ledger: Is a ledger book which shows entries of items supplied and
issued together with stock balance

Balance sheet:Is a paper document showing detailed entries of items in terms of

assets and liabilities of an organization.

Ledger: Is the principal bookof accounting which shows detailed entries of all
subsidiary books of accounting. It serves as controller to all other books of original
entries.
Book of original entries: Are account books in which initial entries of first
transactions are recorded before making transfer into the ledger eg receipt, sales
day book,and purchase day book.

Impress system: Is a system of accountingthat deals with recording and translation

of running cost of PHC organization institution.

Pettycash impress: is a small fixed amount of money given to an officer in charge

as an advance for running day to day activities of his or her organization.

Impress accounting:Is divided into two:

a. Simple petty cash impress accounting

b. Columnar petty cash impress accounting