Corporate Compliance

Tip: How to handle donor-restricted gifts

Compliance Monitor, May 25, 2005

Sometimes donors restrict the way their grants, gifts, and endowments can be used. If your facility has received income from these types of donations, identify whether they are donor-restricted for any of these costs and operations:

  • Specific operating expenses within a particular cost center: Ensure that your facility has offset this from the particular cost center or group of expenses in the appropriate cost reporting period.
  • Operating costs of an entire cost center: Ensure your facility has offset this from the particular cost center in the appropriate reporting period.
  • Capital expenditures: Vouch major expenditures from special funds to determine what the facility should consider to identify allowable cost.

The above tip is an excerpt from the book "Hospital Auditing and Monitoring: Sample Programs for Key Risk Areas," copyright 2005 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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