State Board of Accounts
The Indiana State Board of Accounts has acknowledged the recent audit on their website listed here: http://www.state.in.us/sboa/resources/reports/audit/
Although the report is not available online as of now, it can be ordered as described on the site.
It will be interesting to read the whole report as only bits and pieces have been released thus far.
An audit showing $13 million plus in errors needs a thorough explanation and should provide some significant remedies to rectify the underlying problems.
What are the system flaws that allowed this to continue for so many years without being caught sooner? Were there red flags missed or ignored? Who benefited from the mistakes?
All are legitimate questions that need explanations for this County owned, Not-for-profit institution.
Although the report is not available online as of now, it can be ordered as described on the site.
It will be interesting to read the whole report as only bits and pieces have been released thus far.
An audit showing $13 million plus in errors needs a thorough explanation and should provide some significant remedies to rectify the underlying problems.
What are the system flaws that allowed this to continue for so many years without being caught sooner? Were there red flags missed or ignored? Who benefited from the mistakes?
All are legitimate questions that need explanations for this County owned, Not-for-profit institution.
posted by Anonymous at 6:15 AM
14 Comments:
"Who benefited from the mistakes?"
This is typical HB rabble rousing. Every issue has to have a bad guy. Based on what has come out so far, the hospital was audited by a state agency every year and no issues were raised during those audits. It appears that the primary problem has to do with flawed estimates regarding reimbursements and the ability to collect on late billings. Neither of those issues are uncommon in any business and don't necessarily indicate that someone was "cooking the books." The financial folks may not have been as accurate as they should have been in these areas, but why jump to the implication that someone did this to benefit himself?
In 1985, the hospital had an audit performed by the State Board of Accounts that dealt with some accounting concerns. The audit was available at the library for public view. Perhaps our library can again acquire a hard copy or one on disc for the public to read.
Who gives a crap, most businesses has accounting flaws. I bet your practice has a few also. Get a life, and quit spending your time trashing FMH. it really does not help your image.
$13 million is not a trivial amount to be dismissed as common business practice. It has affected the continuing operations of FMH in a very obvious and negative way. Whether someone or group has benifited or not may be the basis for recriminations, but the reality is the deteriation of patient care at FMH.
"Neither of those issues are uncommon in any business and don't necessarily indicate that someone was "cooking the books."
Business accounting errors do occur, but I wouldn't say an error like this is common. Even still your assumption that it is common does not mean that there couldn't have been intentional manipulation, especially when there could have clearly been a motive to "prop up" results in light of the criticisms arising from the "difficulties" with the expansion project.
Ask the employees if this "not uncommon" problem has had a significant impact on patient care and the operations at Floyd.
It is unbelievable that you try to dismiss a $13 million dollar accounting error on normal business practice.
HB is right to bring this up and continue to "rabble rouse" until adequate answers are given and the problems are remedied.
Making the report public is a great idea. Hopefully the Tribune will get a copy and allow everyone to view the results.
As far as State Board of Accounts, they just validate the numbers they are given. They do not do an in depth review of where or how the numbers arise.
Who said it was a small error? The CFO would still be there if it had been considered trivial. However, I have to agree with Anon 6:58 that it is irresponsible to imply that the revenue shortfall was somehow covered up to benefit some person(s). Only in HB World does every problem reflect a battle between the forces of good and evil. In the real world, humans make mistakes that often have bad consequences. That doesn't make them criminals and implying that it does is the worst form of character assassination. HB should show a little more integrity and restraint when pursuing his goal of getting rid of the CEO he dislikes.
get off your thrones. There is nothing in HB's post that is implicitly saying there is a problem.
There are questions, and good ones at that, which should be answered.
How do errors like these go on for several years before someone brings it to the attention of a superior.
Are all the employees in finance idiots. How do you get accounting and masters degrees and this many people miss these mistakes.
I want some answers as well since I pay taxes that support this hospital.
Sometimes I like to watch this blog and pretend that the comments--especially on a page like this--are all coming from one jobless schizo. It's fun. You should try it.
And that "jobless schizo" can never address the posting but always just attacks the blogger or author.
It's easier than trying to defend the indefensible
No, it's not that. I just feel like it spices things up to try and see from a different perspective sometimes. That was an aside--not directed at anyone or anything in particular...just my inner monologue.
New Floyd Math
2003 - 2006
False revenue = great bond rating + save our hospital = new expansion
2006 - 2007
A/R inaccuracies + finance department = - CFO + 13 million dollar "error" = new board chairman and new CFO
IT REALLY DOESNT MATTER WHATANY ONE FINDS.ANY EMPLOYEE THAT PLANS ON STAYING AT FLOYD WILL PAY THE PIPER.THE MONEY THAT WAS AND WILL BE GAINED IS BURIED IN ADMINSTRATION(and the key YES MEN THAT ASSISTED)IN THEIR TSA,their bonus"s,and their wine, dine trips.for some reason the board will not look atWHO really is behind the perks and why one company is choosen over another!How many times in years floyd can reap better pricing but can not recieve better perks.PEOPLE on this blog are wasting time to think that any thing will ever change!!!!!!!!!!!!! FLOYD CONTROLS BY FEAR NOT FACTS.TELLTHEM WHAT THEY WANT TO HEAR AND YOU WILL BE THEGOLDEN CHILD.TELL THE TRUTH AND YOU ARE ON YOUR WAY OUT THE DOOR.KEEP YOUR JOB AT FLOYD AND ALL YOU HAVE YO DO IS LIE,THAT'S WHAT FLOYD ADMINSTRATION CAN RELATE TO.HUMMM,WHY IS THAT?
This is what is available on the link, the PDF is not available.
FLOYD MEMORIAL HOSPITAL/HEALTH SERVICES Floyd 1/1/2006 12/31/2006 B29998 CPA AUDIT; SBA DESK REVIEW FINANCIAL AND COMPLIANCE 6/18/2006 NA
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