Finding Text
Criteria: In order for management and the Board of Directors to effectively manage the Medical Center, the internal and year-end financial statement information must be complete, accurate and prepared in a timely manner. Effective reviews over the transactions must be in place to ensure material transactions are appropriately recorded in the financial statements.
Condition: Our audit procedures revealed that there was a breakdown in the systematic method of ensuring that timely and complete monthly reconciliation and closing procedures take place. As a result, material adjustments were made to investments and net patient accounts receivable during the audit.
Cause: Various general ledger accounts were not reconciled, analyzed and/or adjusted in a timely manner.
Effect: The Medical Center’s consolidated financial statements contained material misstatements which were corrected during the audit process. The Medical Center’s monthly and year-end internal financial statements were not accurate.