Finding 2023-001: Year-End Close and Review - Condition and Criteria: Under GAAP, expenses and related liabilities should be recorded in the period in which they are incurred, regardless of when the invoice is received or paid. During our audit procedures over year-end accounts payable, we identified $416,492 in invoices related to the fiscal year ended September 30, 2023 that were not recorded until the subsequent fiscal year. This resulted in a material understatement of liabilities and fixed assets as of year-end.
Finding 2023-002: Federal Expenditures Reported Under Incorrect Assistance Listing Number (ALN) - Condition and Criteria: The SEFA must accurately identify all federal awards expended during the year, including the correct Assistance Listing Number (ALN) for each program. Our review of the SEFA for the year ended September 30, 2023, identified misclassifications in ALNs and reported expenditures that exceeded actual revenue received for several programs.
Finding 2023-003: Overstatement of Gross Revenue and Contractual Allowances in the General Ledger - Condition and Criteria: GAAP require that revenue and related deductions such as contractual allowances be recorded accurately and supported by underlying records. During our testing of patient service revenue, we noted that both gross revenue and contractual allowances were overstated in the general ledger. Although the net patient service revenue was ultimately stated correctly, the individual components were not accurately supported by the billing or patient accounting system.
Finding 2023-004: Late Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse - Condition and Criteria: The audit for the current year ended September 30, 2023 was not submitted to the Federal Audit Clearinghouse within the statutory deadline of the earlier of nine months after the end of the fiscal year or thirty days after the date of the auditors' report. Internal controls should be in place to provide reasonable assurance that accounting records and information pertaining to the audit process are finalized and made available to allow adequate time to complete the audit prior to the statutory deadline.
Finding 2023-005: Restricted Net Assets Restatement - Condition and Criteria: The Organization must maintain accurate records and internal controls to ensure that financial statements are free of material misstatement, including the proper classification of net assets. During the audit, material adjustments were required to correct restricted net assets for prior years. The adjustments were necessary due to contributions and/or grant funds that had been incorrectly classified as unrestricted rather than donor-restricted. This misstatement resulted in a material errors in previously issued financial statements.
Finding 2023-001: Year-End Close and Review - Condition and Criteria: Under GAAP, expenses and related liabilities should be recorded in the period in which they are incurred, regardless of when the invoice is received or paid. During our audit procedures over year-end accounts payable, we identified $416,492 in invoices related to the fiscal year ended September 30, 2023 that were not recorded until the subsequent fiscal year. This resulted in a material understatement of liabilities and fixed assets as of year-end.
Finding 2023-002: Federal Expenditures Reported Under Incorrect Assistance Listing Number (ALN) - Condition and Criteria: The SEFA must accurately identify all federal awards expended during the year, including the correct Assistance Listing Number (ALN) for each program. Our review of the SEFA for the year ended September 30, 2023, identified misclassifications in ALNs and reported expenditures that exceeded actual revenue received for several programs.
Finding 2023-003: Overstatement of Gross Revenue and Contractual Allowances in the General Ledger - Condition and Criteria: GAAP require that revenue and related deductions such as contractual allowances be recorded accurately and supported by underlying records. During our testing of patient service revenue, we noted that both gross revenue and contractual allowances were overstated in the general ledger. Although the net patient service revenue was ultimately stated correctly, the individual components were not accurately supported by the billing or patient accounting system.
Finding 2023-004: Late Submission of the Single Audit Reporting Package to the Federal Audit Clearinghouse - Condition and Criteria: The audit for the current year ended September 30, 2023 was not submitted to the Federal Audit Clearinghouse within the statutory deadline of the earlier of nine months after the end of the fiscal year or thirty days after the date of the auditors' report. Internal controls should be in place to provide reasonable assurance that accounting records and information pertaining to the audit process are finalized and made available to allow adequate time to complete the audit prior to the statutory deadline.
Finding 2023-005: Restricted Net Assets Restatement - Condition and Criteria: The Organization must maintain accurate records and internal controls to ensure that financial statements are free of material misstatement, including the proper classification of net assets. During the audit, material adjustments were required to correct restricted net assets for prior years. The adjustments were necessary due to contributions and/or grant funds that had been incorrectly classified as unrestricted rather than donor-restricted. This misstatement resulted in a material errors in previously issued financial statements.