Office of Internal Audit

To: Dallas Institute of Internal Auditors

Date: October 5, 2006
Audit Report
Cash Controls
Your ealth Care !"ste#
Report Date: Au$ust 2%, 2006
Distribution &ist:
'ic(e" 'ouse
Donald Duc(
Cash Controls Audit
)*)C+TI,) !+''ARY
-AC./RO+0D
Your Health Care System (YHCS) cashiers accept cash for services provided at each facility. On a daily basis
over $!"!!! is collected by cashiers at #! different locations.
!CO1)
$he scope of the audit includes%
Cash handlin& processes in the cashier's office
$ransactions for the si( month period ended )une *!" #!!+
O-2)CTI,)! A0D R)!+&T!
$he audit evaluated the ade,uacy of controls and processes to achieve -ey business ob.ectives as it related to
cashiers receivin& payments. /ollo0in& are the business ob.ectives and related control assessment (Satisfactory"
1eeds Improvement" 2nsatisfactory) and a summary of &ood and 0ea- controls noted in the audit.
-usiness Ob3ecti4e Control Assess#ent
Safe&uard cash collections !atisfactor"
3a-e timely deposits of daily collections 0eeds I#pro4e#ent
3a(imi4e point of service collections by cashiers +nsatisfactor"
5Control !u##ar"
/ood Controls 6ea( Controls
5aily cash receipts are stored in a loc-ed safe in
the main cash office. (Ob.. 6)
7eys to the cash office safe are maintained on the
cashiers' 0rist or in a loc-ed dra0er. (Ob.. 6)
A bonded courier service pic-s of daily cash
receipts everyday for the company ban-. (Ob.. #)
5aily cash receipts in one office are deposited
0ee-ly instead of daily. Cash on hand 0as
minimal. (Ob.. #)
Cash collection &oals 0ere belo0 established
thresholds for the last three ,uarters. Cash office
employees 0ere not -no0led&eable of point of
service procedures for attemptin& to collect
amounts due on the date of service. (Ob.. *)
$here 0ere no controls in place to ensure cashiers
attempted to collected payment 0hen services
0ere provided. (Ob.. *)
O-!)R,ATIO0! A0D ACTIO0 1&A0
/ollo0in& is a table detailin& all the observations from the audit alon& 0ith mana&ement's action plan to address
these issues.
Office of Internal Audit 6
Cash Controls Audit
D)TAI& O-!)R,ATIO0! A0D ACTIO0 1&A0
Obser4ation 78
Ris( Ran(in$ ')DI+'
$here 0ere no controls in place to ensure cashiers attempted to collected payment 0hen services 0ere provided.
Additionally" Cash collection &oals 0ere belo0 established thresholds for the last three ,uarters. Cash office
employees 0ere not -no0led&eable of point of service procedures for attemptin& to collect amounts due on the
date of service.
Reco##endation
5evelop and implement procedures to educate cashiers of point of service cash collections. 5ocument
procedures in 0ritten policies and procedures and ma-e accessible to all cash collection employees. 3onitor
cash collection results to identify 0here tar&eted trainin& is necessary.
Action 1lan
1erson Responsible 2ohn Doe
)sti#ated Co#pletion
Date
829:8906
Cash mana&ement &enerally a&rees 0ith Internal Audit's findin&s. 8e have developed and approved policies
and procedures to provide &uideline for our cashier's to collect. 8e have be&un trainin& at each location 0hich is
scheduled to be completed by 6#9*69!+. 8e 0ill monitor cash collection results and provided tar&eted trainin& to
those individuals not meetin& established &uidelines.
Office of Internal Audit 6