January 6, 2017

The administrative and accounting system of the charity hospital of La Coruña in the eighteenth century

The objective of this work was the analysis of the administrative organization and accounting method employed by the Hospital of Charity of La Coruña in the eighteenth century, which has been carried out through the study of the applicable Constitutions, the main book Accounts , Irenas Cloud Bookkeepers and other documents related to the administration of the Hospital.

In the framework of the organizational model aimed at the institution’s economic and accounting management, the commissioners and caretakers of the Hospital were accountable to the Board of Charity. The accountant, he had to take account of these accounts and the receipts and drafts issued for their entry and preparation of the manifests to the public. He was part of the internal control body of the hospital accounts and was also, together with the treasurer responsible for all accounts to be passed to the main book.

Regarding the accounting method used, this charity was governed by the cash criterion and used the method of charge and data in the preparation of accounts with the people who handled the Hospital’s flows. The main book collected all the collections and payments made by the treasurer of the charity, as well as proof of their review.

Once the study was carried out, we conclude that, taking into account the accounting method used in the main book and the information contained in other documents that we have been able to analyze, an incomplete view of the equity situation is shown by exclusively reflecting treasury movements. Could represent sufficient information for the recipients of the same.

The aim of this paper was to analyze the stewardship and accounting methods used in the Charity Hospital of La Coruña (Spain) during the XVIII century. This has been implemented through the study of its foundation rules, the main book of accounts and other documents linked to the governance of the Hospital.

According to the organizational model of accounting procedures, commissioners and managers of the Hospital sent accounts to the Charity Board. The accountant must enter those accounts, writing down receipts and drafts and presenting public documents. He was part of the Hospital internal control of accounts department, and together with the treasurer, they were responsible for the operations to be accounted for in the main book.

This non profit entity followed the cash flow basis of accounting, using the account for and data method in the personal accounts with those who have access to the cash of the Hospital. The main book contained all collections and payments made by the treasurer of the charity entity and their verification.

The results of the study lead us to conclude that according to the method of accounting used in the main book and other documents analyzed, the complete view of the equity situation was not presented, since just cash flows were accounted for, which could be enough to The users of this reports