Finding Text
Condition – Cumberland Memorial Hospital, Inc. d/b/a Cumberland Healthcare’s (the “Organization”) internal control over financial reporting does not end at the general ledger but extends to the financial statements and notes. As part of our professional services for the year ended June 30, 2024, we were requested to draft the financial statements and accompanying notes to the financial statements. It is the responsibility of management and those charged with governance to make the decision about whether to accept the degree of risk associated with this condition because of cost or other considerations. Because the Organization relies on Wipfli LLP to provide the necessary understanding of current accounting and disclosure principles in the preparation of the financial statements and notes, a material weakness exists in the Organization’s internal controls. This is a repeat finding from 2023, Finding 2023.001.
Criteria – Government Auditing Standards consider the inability to report financial data reliably in accordance with GAAP to be an internal control deficiency.
Effect – The completeness of the financial statement disclosures and the accuracy of the overall financial presentation may be negatively impacted, since outside auditors do not have the same comprehensive understanding of the Organization as its internal staff.
Recommendation – We recommend management and those charged with governance continue to evaluate whether to accept the degree of risk associated with this condition because of cost or other considerations.
Management’s Response – The Organization does not have the resources and staff to prepare the financial statements and notes but will continue to oversee the auditor’s services and review and approve the financial statements and notes.