To whom it may concern, We have included the correction action plans for both findings included in the Schedule of Findings and Questions costs which accompanies the audited financial statements and supplementary information submitted along with the data collection form used to summarize the results...
To whom it may concern, We have included the correction action plans for both findings included in the Schedule of Findings and Questions costs which accompanies the audited financial statements and supplementary information submitted along with the data collection form used to summarize the results of audits performed in accordance with Government Auditing Standards and Uniform Guidance. Corrective Action Plan for Findings Reported in Accordance with Government Auditing Standards Financial Statement Finding 2022-001: Significant Deficiency, Accounts Receivable and Revenue Recognition Condition During the audit, it was discovered that patient accounts receivable associated with the Medical and Educational Development Foundation Physicians Corporation (MEDF) was understated by $734,127. Corrective Action Plan Corrective Action Planned: Our management team evaluated two options to solve the issue that resulted in finding 2022-001. The first option is to record and report MEDF's net patient accounts receivable on a monthly or annually basis, which is consistent with how management reports hospital patient accounts receivable. The second option is for management to monitor MEDF's patient accounts receivable balance monthly or annually to determine the significance of estimated net patient receivable to the financial reporting, if deemed to be significant management would record and report the balance. We believe both options are reasonable solutions that will resolve the finding moving forward. Management has concluded to implement the first option and report MEDF's net patient accounts receivable on an annual basis. Names of Contact Persons Responsible for Corrective Action: Jon Dingledine, Chief Financial and Operating Officer Cory Albers, Vice President of FinanceAnticipated Completion Date: We plan to implement the corrective action plan beginning with fiscal year ending 3/31/2022. The start of the year is April 1, 2022. Corrective Action Plan for Findings Reported in Accordance with Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards Federal Award Finding 2022-002: Significant Deficiency in Internal Control over Compliance, Reporting Condition During the audit performed in accordance with the Uniform Guidance, it was discovered that lost revenues was mistakenly reported using option two in our Provider Relief Fund submissions for reporting periods one and two. Option three should have been selected to report lost revenues since we utilized budget-to-actual patient revenues utilizing 2020, 2021, and 2022 fiscal year budgets which covered the periods of availability; but were not all approved prior to the March 27, 2020 deadline. Corrective Action Plan Corrective Action Planned: Currently, our management team has reviewed the methods used to measure lost revenue for Provider Relief Fund reporting and plans to amend the option used to report past Provider Relief Fund submissions from option two to option three. Our management team plans to continue the use option three for future reporting periods. Names of Contact Persons Responsible for Corrective Action: Jon Dingledine, Chief Financial and Operating Officer Cory Albers, Vice President of Finance Anticipated Completion Date: Management plans to implement the corrective action plan beginning with the next applicable Provider Relief Fund reporting period. This should take place on or before March 31, 2023.