Finding Text
Condition – Cumberland Memorial Hospital, Inc. d/b/a Cumberland Healthcare’s (the “Hospital”) 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, 2023, 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 Hospital 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 Hospital’s internal controls. This is a repeat finding from 2022, Finding
2022.001.
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 Hospital 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 Hospital 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.