Finding 1169578 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-01-19

AI Summary

  • Issue: Journal entries for claims in the legacy EHR software were posted to incorrect accounts.
  • Impact: This led to the need for major adjustments in patient service revenue and bad debt expense.
  • Next Steps: Review and correct the journal entries to ensure accurate financial reporting.

Finding Text

Condition- We noted that journal entries related to claims in the legacy EHR software were recorded to wrong accounts, requiring significant adjustments to be made to correct the balances of patient service revenue and bad debt expense

Corrective Action Plan

Subsequent to year-end, management performed a retrospective review of legacy claims data and journal entries associated with the migration to the new claims EHR software. Management recorded a large correcting journal entry to adjust patient service revenue and bad debt expense based on their review of the data. Although no other system implementations are currently under way, management will implement proper change management controls in preparation of future migrations.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 1169576 2025-001
    Material Weakness Repeat
  • 1169577 2025-002
    Material Weakness Repeat
  • 1169579 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.217 FAMILY PLANNING SERVICES $120,000
93.977 SEXUALLY TRANSMITTED DISEASES (STD) PREVENTION AND CONTROL GRANTS $17,387