Office of the Internal Auditor Howard University
Howard University Hospital Risk Management Process
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Function, Project, Program, Organization, or Activity:

Howard University Hospital: Risk Management Process

Reason(s) Why Audit Is Needed:

KPMG, LLP, the Hospital's external auditors, addressed the Hospital's risk management process as a reportable condition in its FY 1998 Management Letter. The significant issues were that the Hospital's risk manager position had been vacant since July 1997, and the in-house claims administration program was not operating in accordance with industry best practices.

The Hospital hired a consulting firm to review specific claims pending against its self-insurance program. The firm's report recommended material adjustments to the Hospital's loss run report - indicating that the loss run report could not be relied upon, in the consultant's opinion. The firm's other findings were that the Hospital's risk management approach did not effectively address claims and other issues, and did not allow for centralized responsibility and accountability.

KPMG made specific recommendations to improve the risk management process at the Hospital.

Audit Objectives:

To determine and monitor the Hospital's actions that respond to the consultant's and KMPG's reports.

Priority: High

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