Primary Care Providers For A Healthy Feliciana, Inc.Non-Profit

NA

Condition: Several balance sheet accounts which included patient accountsreceivable, inventory, accounts payable and notes payable were notreconciled to the general ledger. Additionally, patient accountsreceivable was not assessed for collectability on a timely basis.Cause: Proper internal control policies require monthly and annualreconciliations of balance sheet accounts so that management coulddetect and correct any possible financial statement misstatements in atimely manner. The collectability of accounts receivable should also beassessed on a timely basis.Criteria: No cause.Effect: Management is unable to detect and correct misstatements in a timelymanner. Net patient accounts receivable could be overstated orunderstated.Recommendation: Management should review the aforementioned accounts and reconcileto the general ledger on a monthly and annual basis. Monthlyassessments of the collectability of patient accounts receivable shouldalso be performed on a monthly basis to ensure accurate financialstatements.Response: Management concurs with the finding. Management has incorporatedthe auditor?s recommendation to reconcile the various accounts to thegeneral ledger on a monthly and annual basis. Additionally, on amonthly basis, management is assessing the collectability of patientaccounts receivable and adjusting the allowance for doubtful accountsaccordingly.