Finding 969592 (2023-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-04-12

AI Summary

  • Core Issue: Financial statements were materially misstated due to inadequate reconciliation of accounts.
  • Impacted Requirements: Accurate financial reporting is essential for management and the Board to make informed decisions.
  • Recommended Follow-Up: Implement monthly account reconciliations and a review process to ensure accuracy in financial reporting.

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.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 393146 2023-003
    Significant Deficiency
  • 393147 2023-004
    Significant Deficiency
  • 393148 2023-005
    Significant Deficiency
  • 393149 2023-001
    Material Weakness Repeat
  • 393150 2023-001
    Material Weakness Repeat
  • 393151 2023-002
    Material Weakness Repeat
  • 393152 2023-002
    Material Weakness Repeat
  • 969588 2023-003
    Significant Deficiency
  • 969589 2023-004
    Significant Deficiency
  • 969590 2023-005
    Significant Deficiency
  • 969591 2023-001
    Material Weakness Repeat
  • 969593 2023-002
    Material Weakness Repeat
  • 969594 2023-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $980,175
93.498 Provider Relief Fund $859,076