Finding Text
Criteria: In accordance with the Louisiana Revised Statute (R.S.) 24:513 and 24:514, audit reports are due to the Louisiana Legislative Auditor (LLA) no later than six months after the local auditee’s fiscal year end.
In accordance with the Uniform Guidance, the Office is required to submit the annual audit reporting package and Data Collection Form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditors’ reports or nine months after the end of the audit period
Condition: The Hospital did not file the required annual audit report nor its report to the Federal Audit Clearing House within the prescribed time deadline including a non-emergency extension granted by the Legislative Auditor until September 30, 2024.
Cause: The Hospital Chief Financial Officer resigned in late 2023. A new Chief Executive Officer and Chief Financial Officer were hired in early 2024; those executives resigned or were terminated by November 2024. The Hospital’s previous auditor declined to continue; replacement auditors were engaged on March 18, 2024. Matters related to net patient revenues and capital assets were not resolved until late 2024.
Effect: The required annual audit reports were not completed until December 2024 resulting in the Hospital not being compliant with the filing requirements of the Louisiana Legislative Auditor or the Federal Clear House.
Recommendation: We recommend that the Hospital adopt practices and procedures that will provide for timely closing and preparation of the financial statements to allow for timely fining as required.