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OIO - UMC Internal Control Significant Deficiencies over Cashiering Operations


Tuesday, January 8, 2013

Office of the Chief Financial Officer
Executive Summary for Closed Reports


Original Report

Report No. OIO 10-02-25 OFT: Final Management Alert Report on the Internal Control Significant Deficiencies over Cashiering Operations at the United Medical Center (UMC), dated October 27, 2010

Current Status

Closed. 

Chief Risk Officer’s Risk Assessment

The Inherent Risk associated with the collections of monies across the District is typically classified as High risk.  However, the hospital has had cash collections averaging $220.00 per month for FY12, so the risk classification is Low risk.  Therefore, the Office of Finance and Treasury (OFT) cashiering model is not compatible with UMC due to its low volume of cash collections.  The Chief Financial Officer for UMC and Director of Patient Financial Services will manage the cashiering function, including the process’s internal controls, in accordance with OFT policies and procedures.  All OIO recommendations have been forwarded to the CFO at UMC for consideration.

Overview of Recommendations

OIO offered seven recommendations, and two have been fully implemented.  Recommendations implemented to strengthen existing controls include the following:

  • OFT purchased and installed a new vault in the cashiering area.
  • The access code that the cash posting manager has to the bank account has been changed to Read Only Access.

In addition, the following actions have been taken:

  • All UMC banking accounts have been moved to the District’s bank, Wells Fargo Bank.
  • An armored car has been established as the carrier for cash collected.
  • A process has been established to collect cash, document deposit tickets, bag cash and send to the cash office.
  • Remote Deposit Capture has been established for collection of checks.

The remaining recommendations will not be implemented by OFT as the cashiering model does not apply due to the low volume of collections.  However, all recommendations have been forwarded to the CFO at UMC.

To view the full report, click OIO - UMC Internal Control Significant Deficiencies over Cashiering Operations.