BLUESBERRY
KEY CONTROL
Having a centralized buying department from
which all purchase are authorized helps in the
ordering of only those supplies which are
necessary and are for valid business purpose.
The purchase department will choose the lowest
price from suppliers so there is minimum
expenditure and All purchases are made with the
suppliers who have been checked for quality,
reliability and pricing.
The hospital has implemented time card clocking
in and out procedures to accurately record the
work hours of employees and overtime
payments. This would lead to employees being
paid for the amount of work they have actually
done.
The capital expenditure committee has
established, made up of senior management who
are responsible for reviewing and approving
significant investments including surgical
equipment purchases so that assets are only
purchased if there is a business need.
The human resources department relies on an
effective approval process for recruiting suitably
trained staff, including the authorization of
increased overtime rates.
TEST OF CONTROL
Test a sample of purchase orders and check
whether they are properly authorized, have the
supervisor’s signature etc.
Select a sample of purchase orders and
independently verify that the buying team
conducted thorough research to obtain the best
available prices from suppliers. Confirm that the
purchase orders accurately reflect the negotiated
prices, ensuring cost-effectiveness.
Choose a random set of employee time cards and
cross-verify clock-in and clock-out times with
corresponding overtime payments. This ensures
the reliability and precision of the time card
system.
Examine records of capital expenditure
committee meetings to verify that
comprehensive assessments were conducted
before granting approval for the acquisition of
surgical equipment. Confirm that the
committee's decisions align with the hospital's
strategic objectives.
Examine personnel files for a sample of recently
hired staff, ensuring that recruitment followed
established procedures, including proper
approvals. Verify that the increased overtime
rates were authorized for valid reasons and that
the reliance on temporary staff has indeed
decreased.