Evaluation of the Manual Procedure for Completing Online Receipts Before Payment Verification At Hospital X

Abstract

This research evaluated the manual procedure for completing online receipts before payment verification at Hospital X using the COSO internal control framework. The procedure operated within a hybrid workflow, where physical documents circulate among units while administrative recording was conducted digitally through Google Sheets. The research aimed to document procedural implementation, evaluate internal control effectiveness based on the COSO framework, and formulate improvement recommendations. A qualitative descriptive approach with a case study method was employed. Primary data were collected through semi-structured interviews and direct observation of Finance Unit and Accounting Unit staff from September 2025 to January 2026. Evaluation against all five COSO components revealed pervasive deficiencies. The control environment was weak due to the absence of written standard operating procedures and reliance on staff-owned personal Google Sheets accounts. Risk assessment had not been formally established, despite recurring incomplete documentation in reimbursement, petty cash, and temporary advance transactions. Control activities showed that staged verification and task separation among units were

functionally in place, yet verification criteria remain undocumented, transaction- specific checklists were unavailable, and bypass practices for urgent transactions

created significant control gaps. Information and communication were inadequate, as the audit trail depended entirely on manual entry, and no periodic reporting to management exists. Monitoring was absent in formal terms, leaving procedural weaknesses undetected. The research concluded that internal control effectiveness was suboptimal across all COSO components and required systemic strengthening through formalized SOPs, structured risk assessment, document checklists, an integrated recording system, and periodic monitoring mechanisms.