At their last meeting the Johnson County Healthcare Center's Board of Trustees discussed the management's response to the fiscal year 2012 audit that was completed earlier in the fall.
In the audit report presented to the board in November, Dooley and Jelly CPAs gave their opinion that four areas needed attention by the JCHC. They were: 1. The facility records Medicare cost report information on a cash basis, rather than the accrual method, as per generally accepted accounting principles. 2. The facility does not accurately record pension expenses by fiscal year, but rather calendar year wage expenses. 3. Not following collection policy in collecting accounts receivable. 4. Does not have a formal conflict of interest policy for board members with a financial interest in other entities.
Hospital Administrator Sandy Ward reported to the board management's response to the discrepancies, saying the first two they disagree with their findings. The JCHC closes their books in June and they would have to keep their books open until November to correct the issue. These two discrepancies are annual findings by the audit, he said.
Although there are reporting differences in fiscal year and calendar year for Medicare and pensions, they are tracked and kept accurately.
Ward said he had discussed collections with the manager and she did not think hiring additional help would improve collections, although it would get her updated on processing them, she did not feel it would have that big of an impact.
The final issue was solved by changing the section of the bylaws to address the conflict of interest and having board member Ray Holt file his with the facility.