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#843355 - 10/26/07 04:03 PM Lockbox operations
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
Okay, I've read some of the previous posts on lockbox operations but I don't have my answer I'm looking for. We started performing a lockbox service to the local hospital here. We provide all the service internally. We even may at times have to go and pick up the payments from the lockbox if the post office couriers cannot. I'm trying to formulate an audit program and identify the risks and what kinds of controls I'm looking for. We probably will go this route for future customers vs. remote deposit capture. Any help or ideas, sources, compliance issues, etc.? Thanks so much!

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Audit
#843372 - 10/26/07 04:12 PM Re: Lockbox operations Auditjg
BrendaC Offline
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BrendaC
Joined: Sep 2001
Posts: 6,029
Sweet Home AL
A few things come to mind:

Ironclad contract (I would have one approved by bank counsel for lockbox services).

Documenting dual control over the lockbox contents from acquisition at post office through processing.

Procedures for documentation and processing of any cash received.

Procedures for handling other items received (letters, etc.).

Segregation of duties for individuals involved in processing payments vs. account access on internal system/balancing responsibilities.
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Life without Jesus is like an unsharpened pencil - it has no point.

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#846201 - 10/31/07 03:04 PM Re: Lockbox operations BrendaC
Al Miller Offline
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Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
Because this is a hospital, you will likely receive medical information (i.e. Explanation of Benefits [EOB] forms). You will also be subject to HIPAA requirements.


Al
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Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

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#846351 - 10/31/07 04:29 PM Re: Lockbox operations Al Miller
1 Peter 5:7 Offline
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1 Peter 5:7
Joined: Jun 2001
Posts: 1,339
TX
Thread link.

Al is correct. You should consider HIPAA. See this thread.
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Opinions are mine not my employer's, and should not be taken as legal advice.

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#848342 - 11/02/07 06:52 PM Re: Lockbox operations 1 Peter 5:7
Ready to Retire Offline
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Joined: Aug 2005
Posts: 2,313
Living in the land of Oz
Are you recommending dual control from at the post office as well as the whole processing process? What if the post office employee takes a bag from our employee, puts all mail in it, and locks the bag? Ours is a small town post office and they would probalby do this for us.

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