ARKANSAS METHODIST HOSPITAL CORPORATION AND SUBSIDIARIES d/b/a ARKANSAS METHODIST MEDICAL CENTER

Section II – Financial Statement Findings Finding No. 2023-001, Significant Deficiency – Cash Reconciliation Criteria: The Medical Center must ensure timely and proper reconciliation of cash accounts in order to ensure there is no misappropriation of assets or errors in monthly financial reporting, particularly as it relates to the Medical Center's cash position. Condition: During the period under audit, due primarily to the Medical Center being short staffed, several bank accounts were not reconciled, and variances were not resolved in a timely manner. Cause: Insufficient staff performing accounting duties and current staff overwhelmed with volume of work. Effect: Deficiencies in controls over this significant process increase risk of financial reporting misstatements which can lead to limiting an entity’s ability to rely on financial data for critical decision making. Questioned costs: None. Identification as a repeat finding: Not applicable. Auditor’s Recommendation: HORNE recommends the Medical Center hire additional staff, permitting accounting job functions such as account reconciliations to be performed timely. HORNE recommends the Medical Center have a set policy to define the job duties for performing the reconciliation, the related review and approval with proper segregation of duties. Auditee’s Response: The Medical Center is working on hiring another individual to aid the accounting processes such as bank reconciliations.