Audit Readiness for Clinics and Pharmacies in UAE

Where clinics and pharmacies records usually go wrong

Month-end routine for a clinic or pharmacy

A short, fixed close keeps a medical business from carrying surprises into year-end. Start with the insurance remittance advices received in the month and match each one to the claims listed in your billing system. Move anything paid short, rejected or still pending to a separate list with the reason code from the payer. A single receivable balance hides which part is collectible.

Next, run a stock valuation report from the pharmacy system and compare it to the inventory account. Differences usually come from three causes. These are returns to suppliers not yet credited, goods received without a booked invoice, and stock transfers between branches that were posted on one side only. Clear these before the books are closed rather than leaving them for the auditor your company appoints to find.

Supporting files a reviewer expects for healthcare revenue

Healthcare revenue comes from several streams: insured patients, self-pay patients, corporate packages and pharmacy counter sales. Each stream behaves differently. A lender or reviewer will usually ask for a revenue analysis that separates them and agrees the total to the ledger and to the VAT return.

Keep the following ready for each stream. Confirm the current VAT treatment of individual services and medicines with the Federal Tax Authority rather than assuming it:

• Daily cash and card takings summary agreed to the bank deposit
• Insurer contracts showing agreed tariffs, discounts and payment terms
• Patient refund and credit note log with approver names
• Corporate package invoices with the visit records behind them
• Pharmacy sales by product category to support VAT coding

Controls around controlled and high-value stock

Controlled medicines and high-value items need tighter handling than ordinary consumables. Keep a movement register that shows receipt, dispensing against a prescription, returns and destruction, and make sure two people sign off any write-off. Pricing changes and manual discounts at the counter should require a supervisor code. Someone who does not work the till should review a weekly exception report.

For clinics, consumables used in procedures are often expensed on purchase. If the quantity on hand is large, count it at year-end and decide with your accountant whether a stock balance should be recognised.

A checklist for your file

• Insurance claims ageing by payer, with rejected claims listed separately
• Stock count sheets matched to the pharmacy inventory ledger
• Expired and damaged stock write-off approvals
• Revenue split by service type for VAT coding
• Doctor fee-sharing agreements and monthly settlement schedules
• Medical equipment register with purchase invoices and depreciation

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