Finding Text
Condition – During our audit, Wipfli LLP proposed a number of adjusting journal entries. Although the net impact of
the adjustments to the financial statements only resulted in a reduction in the decrease in net assets reported of
approximately $651,000, there were still a number of material adjustments which net to this overall change amount.
The adjusting journal entries were based on financial calculations and audit procedures performed by Wipfli LLP that
were not performed during the Hospital’s normal financial close process. Since the Hospital’s internal control did not
discover these adjustments prior to our audit, a material weakness exists in the Hospital’s controls. This is a repeat
finding from 2022, Finding 2022.003.
Criteria – Material adjusting journal entries not prepared by the Hospital are considered to be an internal control
weakness.
Effect – Proper recording and reporting of financial information may not occur in a timely manner.
Recommendation – We recommend that all accounts be reconciled and adjustments be posted to the accounting
records on a quarterly basis, at a minimum.
Management’s Response – The Hospital will work to establish policies and procedures to reduce the number of
adjusting journal entries proposed by the auditors.