Store Audit Program Drugstore by kp00p7

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									                    Store Internal Audit Program

                                                       Prepared by: Michael King
                                                              August 11, 2003 (XIII)
                                                              Updated: February 6, 2004
                                                                      April 14, 2004
                                                                      June 3, 2004
                                                                      July 23, 2004

Store Audit Program

Store / Number:   _______________________________.

Audit Frequency: _______________________________.

Prepared By: ____________________.   Date: ________.
 Pre Audit Research:

       Conduct an entrance meeting with the Manager as soon as possible upon arrival. Briefly outline
              The plan and assistance required from store management.

       Discuss with Manager areas of concern that may require more time.

       Review store injury reports.


       Verify that the written Policy & Procedures Manuals for the store are current, complete and accurate.

       Review door code file and operator authorization file to insure timely purging of terminated employees.

   1.   Cash Office Operations

        __a. Observe if cash office door has lock and is locked    Notes:___________________________.
               when not in use by authorized staff.

        __b. Perform a count and reconciliation of all the         Notes:___________________________.
               funds in the cash office. Notify Loss
               Prevention and Management of any                     Safe:_____.    Register drawers:______.
               significant shortages and or overages.
               Verify total to Store on hand balance.

        __c. Make note of any non-company funds                    Notes:___________________________.
              located in the cash office or safe. (Which
              staff have access?)

         __d. Is the safe or file locked when not in use?           Notes:___________________________.

        __e. Record and copy any personal checks which            Notes:___________________________.
              represent part of the fund balance.
              (Approved voucher/check okay if approved
              because payroll check not processed).

         __f. Observe the preparation of the bank deposit.          Notes:___________________________.
               Verify that deposit is reviewed and signed
               off by 2 employees, prior to going to the
               bank. (Preferably managerial staff). Should
               be 2 deposits per day.
 __g. Review copies of several days deposit slips         Notes:___________________________.
       and tie them into the cash control log.
       Make copies of 4 or 5 to trace later to
       bank deposit statement.

 __h. Check to see that deposit slips, deposit log each   Notes:___________________________.
       line entry and daily cash report are signed by
       the Manager?

 __i. Review a random sample of checks received &
       Charge Card Transactions from prior day’s
       business and verify that each                      Notes:___________________________.
       was processed in accordance with existing
       policies and procedures.

 __j. Review “Paid Out”, “Post Voids” & “Refunds”
       vouchers from previous day                         Notes:___________________________.
       and insure they are being completed, supported
       and approved in accordance with existing
       policies and procedures.

__k. Obtain the daily over/short reports for several      Notes:___________________________.
      previous days and insure that all cashier
      variances are recorded by cashier, register,
      amount, and date in Over & Short Log.
      (LP notified for item > $20/($20)).

__l. Verify that store management performed               Notes:___________________________.
       timely follow up with subject staff
       regarding shortages/overages.

 __m. Observe preparation of the daily Retail &           Notes: ___________________________.
       Sales report. Verify selected items back
       to register output reports.
__n. Observe data entry of daily store cash up            Notes: ___________________________.
       into computer terminal. (Completed daily
       and transmitted to Corporate).

__o. Observe the Managers (or designates)                 Notes: ___________________________.
      Inventory of Lottery Tickets. Insure policy
      of balancing daily and reporting shortages
      to loss prevention being followed.

__p. Insure Procedures relative to Gift Cards             Notes: ___________________________.
       are adhered to.
   __q. Count Postage stamps and record total.            Notes: ___________________________.

   __r. Review Register Cash up sheets and insure         Notes: ___________________________.
        signed by Cashier and Management.

   __s. Review status of Bad check Log.                   Notes: ___________________________.

   __t. Are un-activated Lottery Ticket books             Notes: ___________________________.
         secure and have they been entered to DSD.

   __u. Check updating of Canadian Currency Rates         Notes: ___________________________.
         when applicable.

1. Receiving Merchandise Shipments/Drop Shipments (DSD):

   __ a. Immediately upon arrival, request notice         Notes: _________________________.
          when a merchandise vendor / truck arrives
          to deliver a shipment of or to stock product.

   __b. Upon notification of the vendor/truck arrival     Notes: _________________________.
         proceed to the delivery area and observe the
         entire process, the counting of the cartons,
         pieces, and signing of the bill of lading or
         receipt. The Final Delivery Document should
         be printed when merchandise is received.
         It is used to reconcile to detailed delivery
         Report. Stapled report should be attached
         To original invoice and submitted to
         Accounting via store mail.

   __c. Insure the vendor is not allowed to take any      Notes: _________________________.
          product to the sales floor until the entire
          order is verified.

   __d. Insure store employees don’t change DSD           Notes: _________________________.
          system. (cost, retail, upc, etc.)

   __e. Insure shortages on a DSD delivery orders         Notes: _________________________.
          are noted on the supplier delivery ticket
          or invoices, as proof of delivery. Should
          be signed by Driver and employee.

   __f. Determine if the vendor places and order for      Notes: _________________________.
         product, that it is signed off by management.
      __g. If credit is issued, verify if possible the
             quantities and record the disposition of the       Notes: _________________________.

      __h. Insure that DSD product requiring credit is not      Notes: _________________________.
             setting in the back room for an extended
             period of time.

      __i. Inventory of carton contents should be done for      Notes: _________________________.
             100% of all cartons.

     __j. If a vendor log is used insure the vendor signs       Notes: _________________________.

     __k. Ensure all DSD receiving/returns are entered          Notes: _________________________.
            to the system the day received/returned.

     __l. Is an associate staying with DSD driver at all        Notes: _________________________.
           times in the back room?

2.    Front End Observations:

  __a. Review register, scanning equipment                      Notes: _________________________.
       to insure in good working order. Is
       FAS Tagger deactivation working

  __b. Verify that merchandise recovery procedures              Notes: _________________________.
        are being followed. Timely return of
         returns to sales floor.

      __c. Review register transactions                         Notes: _________________________.
            and insure they are being handled in
            accordance with company policy:

                            Money Orders            Western Union
                            Lotto                   Utility bills
                            Scratch off Lottery     Paid Outs

      __d. Insure that register drawers are being run by the    Notes: _________________________.
            same associate until cash up is done.

      __e. Customers ID’s being requested for sales of          Notes: _________________________
            Tobacco and Alcohol (proof of age)?

3. Photo Department:
   __ a. Insure the area is neat and the equipment clean    Notes: _________________________.
          and in good working order.

   __b. Review the maintenance log for last service dates   Notes: _________________________.
         and jot them down.

   __c. Observe if high dollar items are tagged.            Notes: _________________________.
          (cameras, electronics etc.)

   __d. Review processing of employee photo finishing       Notes: _________________________.
         purchases. They should be paid for and
         processed by another employee.

   __e. Review the age of photos finished and not picked    Notes: _________________________.
         up by customer yet. Note old items.

   __f. Verify overnight photo processing have been         Notes: _________________________.
         entered into the system day of receipt.

   __g. Are chemicals properly stored and handled to        Notes: _________________________.
         prevent accident or injury? Is storage, and
         handling according to OSHA standards?

   __ h. One hour photo Check log to insure “Un-billable    Notes: _________________________.
          clicks (start-up, maintenance, etc.) are being
          accounted for.

   __ i. OSHA CD training completed and documented.         Notes: _________________________.

4. Store Safety:

   __a. Verify that doors are clear of obstructions.        Notes: _________________________.
         Stairs clear of obstructions? (OSHA)

   __b. Are all exit doors in good working order?           Notes: _________________________.
         Emergency Lighting in working order?

   __c. Is the receiving area, dock/door, outside           Notes: _________________________.
          parameter and parking lot cleaned and
          well maintained?
   __d. Is there an emergency evacuation plan?             Notes: _________________________.
          Is it posted at strategic locations
          throughout the store?            (OSHA)

   __e. Verify that receiving door is closed and           Notes: _________________________.
         locked with padlock when not in use,
         unless tied into Detex alarm system.

   __f. Review back room area and insure it is orderly.    Notes: _________________________.
          Storage in overhead racks needs to be secured.

   __g. Wet Floor signs being used when appropriate?       Notes: _________________________.

   __h. Chemicals stored near food products?               Notes: _________________________.

   __i. Other:
              Ladders used properly                       Notes: _________________________.
              Chemical Hazard MSDS sheets
             Photo chemicals stored and
                      handled properly
          OSHA = specific areas:

5. Damaged Merchandise:

   __a. Obtain the paperwork for all existing salvage      Notes: _________________________.
         merchandise awaiting disposal and match it
         to some or all of the corresponding pieces
         of merchandise collected.

   __b. Document questionable salvageable merchandise.     Notes: _________________________.

   __c. Document the location of the Damage paperwork.     Notes: _________________________.

   __d. Verify that Managerial approval is on paperwork.   Notes: _________________________.
         Review any questionable items with management
         and loss prevention.

6. General other areas:

   __a. Review the overall neatness and organization       Notes: _________________________.
         of the store. Floors, windows, displays,
         signs, back room, break room, rest room,

   __b. Postings of Licenses (DEA & State Board               Notes: _________________________.
         for Pharmacy) , DOL and OSHA
         documentation, Sales Tax current and
         in the required locations?
         Food Stamps, HIPPA, Tobacco & Alcohol
         both NY & VT.

   __c. Run a copy of Inventory Adjustment Report             Notes: _________________________.
         off the system. Review unusual items
         with the manager. (shrink, contributions,
         damage warehouse, outdated product,
         pilfered, recall, scrap at store, and transfer to
         or from, store use & pick-up.

   __d. Do a random review for outdated merchandise .         Notes: _________________________.

   __e. Damaged credit for National brand products            Notes: _________________________.
         returns timely. If a lot of credits or substantial
         let Management know.

7. Deliveries:

   __a. Review and test store delivery policy. Insure         Notes: _________________________.
         documentation, approvals etc. are correct.

   __b. Do we have copy of valid driver’s license,            Notes: _________________________.
         proof of insurance, and responsibility
         sign off form? Insure at least 18 years of age.

   __c. If applicable review credit card miles usage.         Notes: _________________________.

   __d. Review Open Outstanding Balance of AR.                Notes: _________________________.
         (with bookkeeper)

8. Managers responsibility Should be twice weekly:

   __a. Counts the safe and check safe log for accuracy.      Notes: _________________________.

   __b. Check lottery ticket inventory and dispersal.         Notes: _________________________.

   __c. Be informed of over/short situations and follow up.   Notes: _________________________.

   __d. Verify that bank deposits are being handled           Notes: _________________________.

__e. Copy of Beer & Wine invoices kept in file in store.   Notes: _________________________.

__f. Signatures of all employees stating they have         Notes: _________________________.
      attended State of VT Training for Alcohol
       & Tobacco Sales.

9. Pharmacy:

__a. Are all required books and manuals                    Notes: _________________________.
      relative to State regulations on hand?
New York:
           Facts & Comparison
           USPDI
           Copy of Part 80 Rules & Regulations
           Facts & Comparison
           USPDI
           F/C Drug interaction Guide
           APA Handbook of Non-Prescription
               Drugs- 13th. Edition
           APA Handbook of Pediatric Dosage
               Forms- 9th. Edition
           Copy of Federal and State Law
               Of Pharmacy

__b Is a pharmacist present in the store                   Notes: _________________________.
      during all open hours?

__c. Does the pharmacy have a current Drug                 Notes: _________________________.
      Enforcement Administration License?

__d. Does the Pharmacy have a current license by the       Notes: _________________________.
      State Board?
      Other Licenses:
      New York:
           Pharmacists Licenses & Registrations
           ESAP Certificate (for sale of syringes
              Without RX)
           Pharmacists Licenses & Registrations
           Technician Registration

__e. Are controlled substances secured (CII in             Notes: _________________________.
        locked cabinet) to obstruct theft
       or diversion? (BU/D/D/C/A to run CII
       on hand).

__f. How often is a controlled substance               Notes: _________________________.
      inventory taken? Should be once a
      year unless a change of SP.

__g. Are controlled substance documents                   Notes: _________________________.
       maintained separately from other
       drug records?
       Review Store Control Box:
            Documents kept 7 years (separate
               Control boxes)
           1. Current Power of Attorney Paperwork
           2. Invoices
           3. VT Invoices initialed
               by person checking in every page
               date,store number and if order is
           4. Drug Inventory (perpetual 2 years VT)
           5. Unused C-11 order Blanks (222’s)
           6. Used 222’s with Invoices
           7. RSD Returns with shipping receipt
           8. Past Inspection Reports/Corrective Action taken
           9. Patient Profile Release forms

__h. Is a separate log of controlled                   Notes: _________________________.
       substances maintained? Review
       adjustments made. Verify physical
       count back to receipts, scripts etc.
       for a couple of drugs. (Log/ Renlar
       Physical Count).

__i. Does physical set up of Pharmacy                  Notes: _________________________.
      deter customer from reaching in and
      taking a product?

 __j. Review the prescription signature log            Notes: _________________________.
       for completeness. Scan to insure check
       marks are indicated when consultation
__k. Check OPD (office Of Professional                 Notes: _________________________.
       Discipline) areas of review:

          Computer list of top 150 drugs
              and retail price available in system?
             Refrigerator contains drugs only?
             Thermometer in refrigerator to insure
              temperature at between 2 & 8 degrees
             Outdated drugs pulled from
                 stock and marked?
             (Quarantined and Marked “Outdated

   __l. Pharmacist must sign, date and list quantity      Notes: _________________________.
          dispensed for all controlled substances
          on the face of the prescription. Any
          re-fills must be on the back of the
          Prescription. Must have Complete heading
          on the prescription including name, date,
          address, physician etc.

   __m. Review 2/3 Non CII drugs a check actual           Notes: _________________________.
          to Renlar. Review Interactive edits looking
         for large adjustments downward. Xanax &

   __n. McKesson returns done within 30 days?             Notes: _________________________.
          Credit memo signed by McKesson driver
          and Kinney representative.

   __o. Shortage calls to McKesson in 5 days non-         Notes: _________________________.
         controlled and 24 hours controlled must be

   __p. Is cycle counting being done according            Notes: _________________________.
          to policy? Look at results. Once a month
          according to schedule.

   __q. Are filled dated “On The Wall” prescriptions      Notes: _________________________.
          purged and returned to stock if not picked
          up timely? (2 week period).

   __r. Is the log of daily prescriptions filled signed   Notes: _________________________.
           by the pharmacist?

   __s. Are inter-store transfer files maintained and     Notes: _________________________.
         followed up?

8. Merchandising:
   __a. Are window/Ads and store signs current and              Notes: _________________________.
         appropriately placed? Are signs according?
         to Company policy?

   __b. Using Telxon test system prices to shelf and            Notes: _________________________.
         product labels.

   __c. Test price change list & Specials list to shelf         Notes: _________________________.
         marked prices.

9. Follow- up items:

   __a. Perform necessary review and analysis of audit
          leads developed during the execution of the
          audit questionnaire.

10. Audit Finalization:

   __a. Prepare Draft Audit Report. Should include identified control deficiencies and operations
          problems. Cross reference factual statements in report to supporting workpaper (s ).

   __b. Conduct an exit conference and discuss draft report and or findings with manager.

   __c. Based on results of exit conference, make revisions to findings or draft audit report.

   __d. Prepare final audit report for distribution. Distribute to appropriate management.
               President, CEO, Audit Committee
               VP Finance & CFO
               VP Pharmacy Development
               VP Store Operations
               VP Store Development & Design
               Regional Managers
               Store Manager
               SP

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