Finding Text
Criteria – Financial statements are used by management and the Board of Trustees to make decisions and need to accurately present the Hospital’s financial position and results of operations.
Condition – Material adjustments were necessary to properly present the financial statements in accordance with generally accepted accounting principles.
Context – The Hospital has had significant turnover in its finance department.
Cause – Financial statement balances are not being appropriately reconciled to the underlying accounting records.
Effect – The financial statements were materially misstated at year-end.
Prior Year Finding – In the prior audit period a similar finding, 2022-001, was noted.
Recommendation – The Hospital should reconcile all accounts on a monthly basis to ensure all account balances reconcile to the general ledger and implement a review process to ensure accurate reported balances.
Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding. The Hospital’s finance team will reconcile all accounts on a monthly basis and keep a copy of such reconciliations in its monthly documentation file.