Finding Text
Criteria or Specific Requirement ? Management is responsible for preparing financial statements in accordance with generally accepted accounting principles. Condition ? Material adjusting entries were made to patient accounts receivable, estimated third-party payor settlements and related net patient service revenues. Context ? The patient accounts receivable balance did not reconcile with the patient accounts receivable detail. Settlement activity related to estimated third-party payor settlements was not properly recorded. Cause ? During the year ended December 31, 2022, the District underwent an accounting system conversion, resulting in delays in reporting and reconciliation processes. Effect or Potential Effect ? The District?s internal financial statements were misstated. Questioned Costs ? There are no questioned costs. Recommendation ? We recommend the District ensure that reconciliations to the financial statements are performed timely and the internal financial statements be adjusted accordingly. Views of Responsible Officials and Planned Corrective Actions ? Management agrees with the finding and will implement the recommendation.