Corporate Compliance

Tip: Ensure correct handling of petty cash

Compliance Monitor, March 30, 2005

An audit of a physician practice should include a review of the organization's cash and cash handling procedures. Take the following steps to ensure that the practice is handling its petty cash correctly:

  • Obtain and count the petty cash fund (if available) in the presence of the fund's custodian
  • Determine the total cash on hand and receipts
  • If the total cash on hand and receipts do not equal the fund's balance, resolve the discrepancy with the fund's custodian
  • Return the petty cash fund to the fund's custodian and obtain his or her signature that the fund was returned in tact

The above tip is an excerpt from the book "Hospital Auditing and Monitoring: Sample Programs for Key Risk Areas," Copyright 2004 by HCPro, Inc. This book is a step-by-step, practical manual that offers sample audit programs for the most troublesome areas that a hospital must audit. The binder and CD-ROM are filled with actual audit programs used by auditors and compliance officers in the field. Click here for more information or to order your copy today.

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