Finding Text
2022-001 - New York State Indigent Care Pool (ICP) and Upper Payment Limit (UPL) Distributions - Significant Deficiency in Internal Control Criteria: Timely review of significant estimates is an essential internal control to ensure the financial statements presented are complete and accurate. Condition: The Medical Center is responsible for the internal control over the review of significant estimates including third party estimates. Context: During the audit, in conjunction with management, a significant adjustment was reported to the estimated third-party payor settlement balance to appropriately reflect the $2.5 million of cash receipts from the New York State ICP and UPL during 2022. Cause: The significant adjustment was due to lack of timely reconciliation of New York State ICP and UPL activity. Effect: Incomplete review of key estimates can result in significantly misstated internal financial statements. Recommendation: We recommend that all New York State ICP and UPL activity be reconciled on a monthly basis and SMC also reconcile all activity on an annual basis to the New York State Department of Health?s Division of Finance and Rate Setting reports to ensure that all activity is properly reflected on the financial statements. Views of Responsible Official: See management?s Corrective Action Plan on page 50.