Is-'/ HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALEȘTATEOFLOUISIANA COMPONENTUNITFINANCIALSTATEMENTS Ola,Louisiana SEPTEMBER30,197 Underprovisionsofstatelaw,this reportisapublicdocument.a copyofthereporthasbensubmit. tedtotheaudited,oreviewed, entityandotherapropriatepublic oficials.thereportisavailablefor publicinspectionathebaton RougeoficeoftheLegislativeAuditorand,whereapropriate,athe oficeoftheparishclerkofcourt. C~C)
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA COMPONENTUNITFINANCIALSTATEMENTS Oila,Louisiana SEPTEMBER30,197 TABLEOFCONTENTS INDEPENDENTAUDITORS'REPORTONTHE COMPONENTUNITFINANCIALSTATEMENTS COMPONENTUNITFINANCIALSTATEMENTS CombinedBalanceShet,alFundTypesandAcountGroups A 2-3 CombinedStatementofRevenues,Expenditures andchangesinfundbalance ProprietaryFunds CombinedStatememofRevenues,Expensesand CombinedStatementofCashFlows ChangesinRetainedEarnings 5 NotestoFinancialStatements 8-21 6-7 SUPLEMENTALINFORMATIONSCHEDULES 2 EnterpriseFunds: CombiningBalanceShet CombiningStatementofRevenues,Expenses 23-24 andchangesinretainedearnings ScheduleofAlowableCosts CombiningStatementofCashFlows 26-27 25 28 (Continued)
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA COMPONENTUNITFINANCIALSTATEMENTS Olia,Louisiana SEPTEMBER30,197 TABLEOFCONTENTS OTHEREPORTSREQUIREDBYGOVERNMENTAUDITINGSTANDARDS ReportonComplianceandonInternalControloverFinancial ReportingBasedonanAuditofFinancialStatements STATUSOFPRIOREPORTABLECONDITIONS PerformedinAcordancewithGovernmentAuditm~Standard 30-31 3233 STATUSOFPRIORAUDITFINDINGSANDQUESTIONEDCOSTS SCHEDULEOFREPORTABLECONDITIONS (Concluded)
TheCPA. Nero"Undere~JrnaleTheValue~ /~,T,T,~N,GREN&COMPANY,LP CERTLFIEDPUBLICACOUNTANTS 2414FerandStret Monroe,Louisiana71201 Telephone(318)38-42 PostOficeBox6075 Monroe,Louisiana7121-6075 Facsimile(318)38-464 Web:htp:/w.alengrencpa.com INDEPENDENTAUDITORS'REPORTONTHECOMPONENT UNITFINANCIALSTATEMENTS BoardofComisioners HospitalServiceDistrictNumberOne oftheparishoflasale StateofLouisiana Ola,Louisiana ErnestL.Alen,CPA (AProleslonal AcountingCocp) TimGren.CPA MargieWiliamson,CPA WehaveauditedtheacompanyingcomponentunitfinancialstatementsoftheHospitalServiceDistrictNumber OneoftheParishofLaSale,stateofLouisiana,acomponentunitofLaSaleParishPoliceJury,asofandforthe yearendedseptember30,197.thesecomponentunitfinancialstatementsaretheresponsibilityoftheboardof ComisionersoftheHospitalServiceDistrict.Ouresponsibilityistoexpresanopiniononthesecomponentunit financialstatementsbasedonouraudit. WeconductedourauditinacordancewithgeneralyaceptedauditingstandardsandGovernmentAuditing Standards.isuedbytheComptrolerGeneraloftheUnitedStates.Thosestandardsrequirethatweplanand performtheauditobtainreasonableasuranceaboutwhetherthecomponentunitfinancialstatementsarefreof materialmistatement.anauditincludesexamining,onatestbasis,evidencesuportingtheamountsand disclosuresinthecomponentunitfinancialstatements.anauditalsoincludesasesingtheacountingprinciples usedandsignificantestimatesmadebymanagement,aswelasevaluatingtheoveralcomponentunitfinancial statementpresentation.webelievethatourauditprovidesareasonablebasisforouropinion. Inouropinion,thecomponentunitfinancialstatementsreferedtointhefirstparagraphpresentfairly,inalmaterial respects,thefinancialpositionofthehospitalservicedistrictnumberoneoftheparishoflasale,stateof Louisiana,asofSeptember30,197,andtheresultsofitsoperationsandthecashflowsoftheproprietaryfund typesfortheyearthenended,inconformitywithgeneralyaceptedacountingprinciples. Ourauditwasmadeforthepurposeoforminganopiniononthecomponentunitfinancialstatementstakenasa whole.theacompanyingsuplementalinformationscheduleslistedinthetableofcontentsarepresentedfor purposesofaditionalanalysisandarenotarequiredpartofthecomponentunitfinancialstatementsofthehospital ServiceDistrictNumberOneoftheParishofLaSale,stateofLouisiana.Suchinformationhasbensubjectedto theauditingproceduresapliedintheauditofthecomponentunitfinancialstatementsand,inouropinion,isfairly presentedinalmaterialrespectsinrelationtothecomponentunitfinancialstatementstakenasawhole. Monroe,Louisiana December2,197 ALEN,GREN&COMPANY,LP Membe(AmericanInstituteofCertifiedPublicAcountants,Soc=etyofLOulS=anaCertifiedPublicAcountantsand AmericanInstituteofCertifiedPublicAcountantsDivisionlotCPAFirms
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA ALFUNDTYPESANDACOUNTGROUPS Ola,Louisiana COMBINEDBALANCESHET September30,1897 GovernmentalPropHetery Total DebtServiceEnterprise Funds Funds(Memorandum Only) Cashandinvestments Cash,checking Certificatesofdeposit $ 050 158,602$ 50.0 158,602 50,0 Receivables Patientservices,netofalowanceof$1,24,172 Estimatedthird-partypayorsetlements 1,686,961 Interest 158,015 1,686,961 158,015 Rent Suplies Miscelaneous Prepaidexpenses 98,691 2,3148018 2,3148018 18,718 98,691 18.718 Asetswhoseuseislimited Byagrementwiththird-partypayorsforfunded Underevenuebondagrement depreciation 378,872 Revenuebondandinterestsinkingacount Revenuebondreserveacount 12,632 378,872 104,864 12,632 Property,plantandequipment Depreciationandcontingencyfund 19,28 104,864 19,28 LandLandimprovements Buildings Equipment,furnitureandfixtures 1,589,1281,589,128 39,359 4,615 39,35g 4,615 TOTALASETS Acumulatedepreciation (2,892,102)(2.892.102) 2,025,9592,025,959 ~; 0:~4~016174~;41016T74 Seacompanyingnotestofinancialstatements
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA ALFUNDTYPESANDACOUNTGROUPS OIla,Louisiana COMBINEDBALANCESHET September30,197 StatementA GovementalProprietary DebtServiceEnterprise Funds Funds(Memorandum Total Only) LiabilitiesAcountspayable Saladespayable Curentportionofcapitalease Acruedvacationpayable Estimatedthird-partypayorsetlements Payablefromasetswhoseuseislimited 05O0 27,963$ 32,808 6,914 41,3790 27,963 32,808 6,914 41,3790 Revenuebondspayable Acruedbondinterestpayable 0 865,0 39,646 865,0 39,646 Equityandothercredits Totaliabilities Contributedcapital Retainedearnings: 0$1,067,738$1,067,738 Reservedforevenuebond: Sinkingacount Unreserved Reserveacount Depreciationandcapitalimprovement 12,632 12,632 0 1,378,602 104,864 19,28 1,378~602 104,864 19,28 Totalequityandothercredits TOTALIABILITIES.EQUITYANDOTHERCREDITS 0~2,693,064$2,693,064 Seacompanyingnotestofinancialstatements
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana COMBINEDSTATEMENTOFREVENUES,EXPENDITURES, ANDCHANGESINFUNDBALANCE ALGOVERNMENTALFUNDS YearEndedSeptember30,197 REVENUES Interest EXPENDITURES Totalrevenues Debtservice: Principalretirement Interest Fiscalcharges EXCESEXPENDITURESOVEREVENUES Totalexpenditures FUNDBALANCE,BEGININGASORIGINALYSTATED FUNDBALANCE,BEGININGASRESTATED RESIDUALEQUITYTRANSFER FUNDBALANCE,ENDING Debt Service 3,0676 34,185 (32389) 51,682 (18,913) 32,789 0 Seacompanyingnotestothefinancialstatements
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana ALPROPRIETARYFUNDS COMBINEDSTATEMENTOFREVENUES,EXPENSES, ANDCHANGESINRETAINEDEARNINGS YearEndedSeptember30,197 REVENUES Netpatientservicerevenues ContributionsfromAmbulanceServiceDistrict StateofLouisiana,EmergencyServicesgrant Vendingmachinecomisions Rentals,physicians'ofices Cafetadasales Totalrevenues OPERATINGEXPENSES Dailypatientservices Nursingservices Otherprofesionalservices Generalservices Administrativeandfiscalservices Employebenefits Depredation Provisionforbadebts Interestexpense Totalexpenditures OPERATINGINCOME(LOS) NONOPERATINGREVENUES(EXPENSES) Interestrevenue: Unrestrictedasets Asetswhoseuseislimited Other Totalnonoperatingrevenues(expenses) NETPROFIT(LOS) RETAINEDEARNINGS,BEGINING RETAINEDEARNINGS,ENDING Seacompanyingnotestothefinancialstatements. 5 StatementC $5,484,498 86,40 25,0 2,787 7,20 15,839 $5,621,724 $829,012 2,010,064 1,24,369 61,819 381,357 254,624 127,725 541,75 47,341 $6,048,086 $(426,352) $28,047 28.98 12,858. $69,893 $1,981,795. $1,625,325
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA ALPROPRIETARYFUNDS Ola,Louisiana COMBINEDSTATEMENTOFCASHFLOWS YearEndedSeptember30,197 CASHFLOWSFROMOPERATINGACTIVITIES Income(los)fromoperations Adjustmentstoreconcilenetincome(los)to netcashprovidedby(usedin)operatingactivities: Provisionforbadebts Depreciationexpense Interestpaidoncapitaland (increase)decreasein: relatedfinancingactivities Acountsreceivable,patients Acountsreceivable,third-partypayors Suplies Increase(decrease)in: Prepaidexpenses Other Acountspayable,trade Acountspayable,third-partypayors Otherevenues Saiedespayable Acruedvacationpay Totaladjustments Netcashprovidedby(usedin) operatingactivities 541,75 127,725 (1,O26,693) 47,341 1,209 23,463 (3,474) 7,375 56,042 (2,97) 12,858 3,85 4,030 Seacompanyingnotestofinancialstatements,
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA ALPROPRIETARYFUNDS Ola,Louisiana COMBINEDSTATEMENTOFCASHFLOWS YearEndedSeptember30,197 CASHFLOWSFROMCAPITALANDRELATED FINANCINGACTIVITIES Purchaseofproperty,plantandequipment CapitalcontdbutadbyDebtService Capitaleaseobligations: Hospitalrevenuebonds: Principal Interest Principal Interest Netcashusedincapitaland CASHFLOWSFROMINVESTINGACTIVITIES relatedfinancingactivities Decrease(increase)inrestrictedasets Interestreceived Decrease(increase)incertificatesofdeposit NETINCREASE(DECREASE)INCASHAND Netcashprovidedbyinvestingactivities CASHEQUIVALENTS CASHANDCASHEQUIVALENTSATBEGINING CASHANDCASHEQUIVALENTSATEND OFYEAR (Concluded) OFYEAR StatementD (24,797) 18,913 (7,674) (1,529) (45,0) (45,5ol) 57,516 57,035 52,434 Seacompanyingnotestofinancialstatements
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,197 INDEX Page SUMARYOFSIGNIFICANTACOUNTINGPOLICIES ReportingEntity FundsAcounting BasisofAcounting 9 BudgetPractices 9-1010-1313 Encumbrances CashandCashEquivalents Investments Suplies AsetsWhoseUseIsLimited Property,PlantandEquipment 1314141414 Long-TermDebt MemorandumOnly-TotalColumn UseofEstimates 14-15151515 NOTE CASH,CASHEQUIVALENTSANDCERTIFICATESOFDEPOSIT ACOUNTSRECEIVABLEANDALOWANCEFORDOUBTFULACOUNTS16-17 ASETSWHOSEUSEISLIMITED 15-16 17-18 CONTINGENCIES NOTE PENSIONPLAN LONG-TERMDEBT NOTE9 CAPITALEASEOBLIGATIONS 181818-1920 NOTEl0 INCOMETAXES CASHFLOWSTATEMENTS NOTE12 BEHAVIORALHEALTHUNIT RESIDUALEQUITYTRANSFER 20202121
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS Ola,Louisiana SEPTEMBER30,197 TheHospitalServiceDistrictNumberOneoftheParishofLaSale,stateofLouisiana(District),wascreatedbythe LaSaleParishPoliceJury,andoperatesHardmerMedicalCenterthroughitsBoardofComisioners.Hardtner MedicalCenterisa49-bedhospitalocatedinOla,Louisiana,servingOlandthesuroundingcomunity.In adition,thedistrictprovidesoficespacetoseveralphysiciansonarentalbasis. ThedistrictisgovernedbyaBoardofComrmsionerswhosemembersathedateofthisreportare LyleWods,Chairman G.F.Tanehil,Vice-Chairman Mrs.IrmaTeral BenyZeagler DavidM.Hamner,AdministratoroftheHospital,servesasecretaryandtreasureroftheBoard.EachBoard LeRichardel membereceived$40permeting,foratotalof$2,40fortheyear. ThefinancialstatementsoftheDistricthavebenpreparedinconformitywithgeneralyaceptedacounting principles(gap)asapliedtogovernmentalunits.thegovernmentalacountingstandardsboard(gasb)is theaceptedstandard-setingbodyestablishingovernmentalacountingandfinancialreportingprinciples.the moresignificantofthehospitalservicedistrict'sacountingpoliciesaredescribedbelow. A.REPORTINGENTITY TheHospitalServiceDistrictNumberOneisacomponentunitoftheLaSaleParishPoliceJury,thereporting entity.thelasaleparishpolicejuryisthegoverningauthorityoftheparishoflasale,louisiana,andis governedbyaboardofpolicejurorselectedbythepublic.undertheprovisionsgrantedbythelouisiana statutes,thepolicejurycreatedthehospitalservicedistrictnumberoneandapointsthemembersofits BoardofComisioners.Theacompanyingfinancialstatementsarecomponentunitfinancialstatementsof thehospitalservicedistrictnumberoneoftheparishoflasaleandarenotintendedtopresentfairlythe financialpositionandresultsofoperationsofthelasaleparishpolicejuryinconformitywithgeneraly aceptedacountingprinciples. B.FUNDACOUNTING TheacountsoftheDistrictareorganizedonthebasisofundsandanacountgroup,eachofwhichis consideredaseparateacountingentity.theoperationsofeachfundareacountedforwithaseparatesetof self-balancingacountsthatcompriseitsasets,liabilities,fundequity,revenues,andexpendituresorexpenses, asapropriate.thefundspresentedinthef'mancialstatementsaredescribedasfolows:
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALLE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS Ola,Louisiana SEPTEMBER30,197 B.FUNDACOUNTING(Continued) (Continued) DebtServiceFund Thedebtservicefundisagovernmentalfundtypethatacountsfortheacumulationofresourcesfor,and thepaymentof,generalong-termprincipal,interesțandrelatedcosts. EnterpriseFunds Thenterprisefundsareproprietaryfundtypesthatacountforactivitiesimilartothosefoundinthe privatesector,wherethedeterminationofnetincomeisnecesaryandusefultosoundfinancial administration. OperationsandMaintenanceEnterpriseFund TheDistrictprovidesvariouservicestothedoctorsoftheHospitalthroughtheuseofthisfund.In anefortoretaindoctorsforthehospital,thedistrictprovidesbuildingsforthedoctors'use.the doctorsarechargedamonthlyrentforuseofthesebuildings. ConcesionEnterpriseFund Inordertocontrolthecolectionsandreducecosts,theDistrictengagesanoutsidevendingcompany tohandletheconcesions.alactivitiesoftheconcesionfundareconductedbyanoutsideagency whopaysthedistrictastatedpercentageofgroscolections. HardtnerMedicalCenterEnterpriseFund ThisfundacountsfortheoperationsoftheMedicalCenter.Itspurposeistoprovidenededhealth C.BASISOFACOUNTING careservicestopersonswithinthedistrict. Theacountingandfinancialreportingtreatmentapliedtoafundisdeterminedby~tsmeasurementfocus. Basisofacountingreferstowhenrevenuesandexpendituresorexpensesarerecogmzedandreportedin thef'mancialstatements.basisofacountingrelatestothetimingofthemeasurcmentsmade,regardles ofthemeasurementfocusaplied. GovernmentalFunds Thegovernmentalfund(debtservice)isreportedonamodifiedacrualbasisofacounting.Thedebt servicefundusesthefolowingpracticesinrecordingrevenuesandexpenditures: 10
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS OIla,Louisiana SEPTEMBER30,197 C.BASISOFACOUNTING(Continued) (Continued) GovernmentalFunds(Continued) Advaloremtaxesarerecordedintheyearthetaxesbecomedueandpayable.Advaloremtaxesare asesedonacalendar-yearbasis,becomedueonnovember15ofeachyear,andbecomedelinquent ondecember31.themajorityofthetaxesaregeneralycolectedindecember,januaryandfebruary ofthefiscalyear. Interestearningsontimedepositsarerecordedastheyarearned. EnterpriseFunds Principalandinterestongeneralong-termdebtarerecognizedwhendueforpayment. Thenterprisefundsarereportedontheacrualbasisofacounting.Revenuesarerecognizedwhenthey arearnedandexpensesarerecognizedwhentheyareincured.patientservicerevenue,etc.,are recognizedasfolows: NetpatientservicerevenueispatientrevenuereportedatHardtnerMedicalCenter's(Hospital's) establishedrateslescontractualadjustments,charityalowancesandpolicydiscounts.retroactive adjustmentsarisingundereimbursementagrementswiththird-partypayorsareacruedonan estimatedbasisintheperiodtherelatedservicesarerenderedandadjustedinfutureperiodsasfmal setlementsaredetermined. TheHospitalhasagrementswiththird-partypayorsthatprovideforeimbursementotheHospital atamountsdiferentfromitsestablishedrates.contractualadjustmentsunderthird-partyreimbursementprogramsrepresenthediferencebetwenthehospital'sestablishedratesforservicesand amountsreimbursedbythird-partypayors.asumaryofthebasisofreimbursementwithmajor third-partypayorsfolows:
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS ela,louisiana SEPTEMBER30,197 C.BASISOFACOUNTING(Continued) EnterpriseFunds(Continued) MedicareInpatientcareservicesrenderedtoMedicareprogrambeneficiariesarepaidat prospectivelydeterminedratesperdischarge.theseratesvaryacordingtoapatientclasification systemthatisbasedonclinical,diagnostic,andotherfactors.outpatientservicesandefinedcapital costsrelatedtomedicarebeneficiariesarepaidbaseduponacostreimbursementmethod.the Hospitalispaidforoutpatientcostreimbursableitemsatatentativeratewithfinalsetlement determinedaftersubmisionofanualcostreportsbythehospitalandauditsbythemedicarefiscal intermediary.costreportsthroughseptember30,194havebensetled.medicarehascompleted itsreviewofthecostreportforseptember30,195,andtentativesetlementfigureshaveben recorded. MedicaidInpatientservicesrenderedtoMedicaidprogrambeneficiariesarereimbursedon prospectivelydeterminedrates.outpatientservicesrenderedtomedicaidprogrambeneficiariesare reimbursedbaseduponacostreimbursementmethodolog?thehospitalisreimbursedatatentative ratewithfinalsetlementdeterminedaftersubmisionofanualcostreportsbythehospitalandaudits thereofbythemedicaidfiscalintermediary.thehospltarsmedicaidcostreportshavebenaudited bythemedicalfiscalintermediarythroughseptember30,194.areviewfor195and196isin progresandshouldbecompletedson. ThestateMedicaidProgramadepartialinterimpaymentsbasedoncostreportfigureswithout consideringper-dischargelimitationsandincentivepaymentspendingaprovalofthispaymentplan bythehealthcarefinancingadministration.thestateoflouisianarecentlysetledcostreportsfor prioryearsafterreachingagrementwiththefederalgovernmentregardingreimbursement methodologyanduponapropriationsofundsbythestatelegislature.colectionsamountedto $106,342for191,192and193.TheMedicaidcostreportsfor195and196areundereview andshouldbecompletedson.theunpaidbalanceonthesetwocostreportsis$49,56.any diferencebetwentheamountsestimatedtobedueorpayableonfinalauditwilbeincludedin contractualadjustmentstorevenuesintheyearsetled.thedeterminationoftheamountstobe receivedandtheirpaymentsocuredafterthedateofthisreportbutbeforeitwasisued. BlueCrosInpatientservicesrenderedtoBlueCrosubscribersarereimbursedatanal-inclusive perdiemrate.theprospectivelydeterminedperdiemratesarenotsubjectoretroactiveadjustments. outpatientser~tesrenderedarereimbursedonthesamebasisusedbymedicare Inpatientand 12
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS Ola,Louisiana SEPTEMBER30,197 C.BASISOFACOUNTING(Continued) (Continued) EnterpriseFunds(Continued) CharityTitleVI(Hil-Burton)ofthePublicHealthActRegulationsrequiredHospitalstoprovide frecaretopatientswhowereunabletopay. HardmerMedicalCentercompleteditstwenty-yearobligationofprovidingflecareunderHil- Burton.Apolicyforprovidingcontinuingcharitycareforfutureyearshasnotbenestablished. atnetpatientservicerevenuesfolowingisasumaryofcontractualandotheradjustmentstoarive Grospatientservicerevenue Lescontractualadjustments: Medicare Medicaid Otherthirdparties 1,71,031 393,410 Netpatientservicerevenue Totalcontractualadjustments 2,153,690 49249 Contributions.ContributionsfromtheLaSaleParishAmbulanceServiceDistrictforoperationof theambulancesaretreatedasoperatingrevenues.unresuictedonationsaretreatedasnonoperating revenueswhenreceived. D.BUDGETPRACTICES TheDistrictmaintainsadebtservicefundandenterprisefundsinitsacountingsystemandisnotsubjecto thelocalbudgetactortherequirementsofgeneralyaceptedacountingprinciplesthatrequirebudgeto actualcomparisons.therefore,budgetoactualcomparisons,usualyfoundinthefinancialstatementsof governmentalentities,arenotincludedinthesestatements. E.ENCUMBRANCES TheDistrictdoesnotuseaformalsystemofencumbranceacounting. 13
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,197 F.CASHANDCASHEQUIVALENTS (Continued) Cashincludesamountsindemandepositsandinterest-bearingdemandeposits,andtimedepositacounts. Cashequivalentsincludeamountsintimedepositsandthoseinvestmentswithoriginalmaturitiesof90days orles. TheDistrictdepositsitsfundsinfiscalagentbanksorganizedunderthelawsofthestateofLouisiana,orthe lawsoftheunitedstates. Cashandcashequivalentsalsoincludeamountswhoseuseislimitedbyboardesignationoragrementswith third-partypayorsinacordancewithstatementnumber9ofthegovernmentalacountingstandardsboard. SeNote4. G.INVESTMENTS Investmentsarebankcertificatesofdeposithatarevaluedatcostwhichaproxamatesmarket.Iftheoriginal maturitiesofinvestmentsexced90days,theyareclasifiedasinvestments;however,iftheoriginalmaturities are90daysorles,theyareclasifiedascashequivalents. H.SUPLIES Inventoriesofsupliesandminorequipmentarevaluedatlowerofcost(first-in,first-out)orlatestinvoice price. I.ASETSWHOSEUSEISLIMITED Asetswhoseuseislimitedincludefundsetasideinacordancewithagrementswiththird-partypayorsand fundsheldinacordancewiththeprovisionsofarevenuebondagrement. J.PROPERTY,PLANTANDEQUIPMENT Propertyandequipmentacquisitionsarerecordedatcost.Propertyandequipmentdonatedforhospital operationsarevaluedatheirfairmarketvalueonthedatereceived,withthexceptionofthesiteofthe hospitalwhichiscariedatnovalue. Excludingthevalueofthehospitalsiteunderstatestheasetsofthehospital,butnotbyasignificantamount. Alexhaustiblepropertyandequipmentareshownintheacompanyingbalanceshetatheiroriginalcosts, lesacumulatedepreciation.depreciationisrecordedonthestraight-linemethodoverthestimateduseful lives,asfolows: 14
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS Ola,Louisiana SEPTEMBER30,19"7 NOTE1-SUMARYOFSIGNIFICANTACOUNTINGPOLICIES(Continued) J.PROPERTY,PLANTANDEQUIPMENT(Continued) Landimprovements Buildings Fixedequipment 12-29years 16-40years Majormoveablequipment 5-20years 3-20years K.LONG-TERMDEBT Long-termdebtisrecognizedasaliabilitymthegovernmentalfundwhendue.Theremainingportionofthe long-termdebtforgovernmentalfundscomingdueinfutureyears,isreportedinthegeneralong-termdebt acountgroup.thisacountgroupisnotafund.itisonlyconcernedwiththemeasurementofinancial position,notwithmeasurementofresultsofoperations. Long-termliabilitiesexpectedtobefinancedfromproprietaryfiredoperations,HardtnerMedicalCenter,are acountedformthenterprisefund. L.MEMORANDUMONLY-TOTALCOLUMN Thetotalcolumnofthecomponentunitfinancialstatementsbalanceshetiscaptioned"memorandumonly" toindicatethatheyarepresentedonlytofacilitatefinancialanalysis.datainthiscolumndoesnotpresent financialpositionoresultsofoperationsinconformitywithgeneralyaceptedacountingprinciples.neither isuchdatacomparabletoaconsolidation. M.USEOFESTIMATES AtSeptember30,197,theDistricthascashandcash,cashequivalents,andcertificatesofdeposit(bokbalances) totaling$1,284,198asfolows: Demandeposit Petycash Certificatesofdeposit $405,02630 878,872 15
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,197 ThefolowingistherelationshipbetwentotaldepositsandthebalancesonStatementA-CombinedBalanceSheț (Continued) asofseptember30,197: Cash,checking Certificatesofdeposit Asetswhoseuseislimitedunderevenuebondagrement $158,602 Underevenuebondagrement byagrementwiththird-partypayorsforfundeddepreciation 50,0 Revenuebondandinterestsinkingacount 378,872 Revenuebondreserveacount 12,632 Depreciationandcontingencyfund 104,864 Total 19,28 Thesedepositsarestatedatcost,whichaproximatesmarket.Understatelaw,thesedeposits(ortheresultmgbank balances)mustbesecuredbyfederaldepositinsuranceorthepledgeofsecuritiesownedbythefiscalagentbank. Themarketvalueofthepledgedsecuritiesplusthefederaldepositinsurancemustataltimesequaltheamounton depositwiththefiscalagent.thesesecuritiesareheldinthenameofthepledgingfiscalagentbankinaholding orcustodialbankthatismutualyaceptabletobothparties. Atyear-end,theDistrict'scaryingamountofdepositswas$1,284,198andthebankbalancewas$1,249,602.Of thebankbalance,$30,0wascoveredbyfederaldepositoryinsuranceorbycolateralheldbythedistrict'sagent inthedistrict'sname(gasbcategory1).theremainingbalance,$949,602wascolateralizedwithsecuritiesheld bythepledgingfmancialinstituon'strustdepartmentoragentbutnotinthedistrict'sname(gasbcategory3). ThesedepositsareconsidereduncoUateralized(Category3)undertheprovisionsofGASBStatement3.However, LouisianaRevisedStatute39:129imposesastatutoryrequirementonthecustodialbanktoadvertiseandselthe pledgedsecuritieswithin10daysofbeingnotifiedbythediswicthathefiscalagenthasfailedtopaydeposited fundsupondemand. Acountsreceivable-patients,includeunpaidamountsbiledtodischargedpatientsandthird-partypayorsuchas insurancecompaniesandthefiscalintermediariesofthesocialsecurityadministrationonbehalfofpatientseligible forbenefitsundertitlexviandxixofthesocialsecurityact.alsoincludedareunbiledchargesforthose patientnotdischargedatseptember30,197. 16
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALLE,STATEOFLOUISIANA Ola,Louisiana NOTESTOFINANCIALSTATEMENTS SEPTEMBER30,197 V (Continued) AsumaryoftransactionsmthealowancefordoubtfulacountsandcontractualadjustmentsoftheHospital folows: Balanceatbeginingofperiod Provisionforestimatedlosesonuncolectedacounts Acountschargedtoalowance $61,489 58,808 Balanceatcadofperiod Reductions(increases)inalowancesforcontractualadjustments (1.784.359~ 1,858,234 InacordancewithMedicareregulations,theBoardhaslimitedtheuseofthefolowingasetsforcapital improvementandfundedepreciation.thesefundsarekeptinvestedincertificatesofdepositwithlocalbanksas shownbelow. BankofJena JonesvileBank&Trust 4.75% Total 3.0%-5.0% $10,0 278,872 3.6%-5.38% 4.25% Amgunt $30,0 $936,38 636,38 TheHospitaldecreaseditscapitalimprovementandfundedepreciationacountsaproximately$57,516.This moneywastransferedtotheoperatingfund. TheHospitalisrequiredtomakemonthlydepositsintothefolowingfundsundertheFHAloanagrement: 197 Balance Revenuebondandinterestsinkingacount Revenuebondreserveacount Depreciationandcontingencyfund $12,632 104,864 19,28 Totalasetswhoseuseislimited 17
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANaALSTATEMENTS ela,louisiana SEPTEMBER30,197 Thesemoniesareininterest-beangacountsandareincludedinthebalanceshetasasetswhoseuseislimited. (Continued) Thereisarequiredamountof$9,0maintainedintherevenuereservefund.Paymentsintothedepreciationfund shalcontinueandaretobeusedonlyforeplacementandrepairs.revenuebondandinterestsinkingfundsareused tomakeanualprincipalandinterestpayments.alrequiredepositstothesefundshavebenmade. Self-In~uredTheHospitalpaysLouisianaUnemploymentCompensationTaxundertheLouisianaEmploymentSecurityLaw.Thetaxisnormalyasesedatherateofourtofivepercentofthefirst$8,50ofeach employe'swageshowever,thehospitalhaselectedtopayonanexperience-ratingmethodwherebyactual compensauonpaymentstoqualifyingemployesareasesed. Pendin~Liti~,ationAcaseinvolvingtheuseofanambulanceanditspersonelwasbroughtbeforethe MedicalReviewBoardPanelwhichruledinJulyof192thatHardtnerMedicalCenterwaswithoutfault.The plaintifsfiledalawsuitshortlythereaftertowhichthehospitalresponded.apre-trialconferencewas scheduledtobeheldinjune196,atwhichtime,atrialdatewastobeselected.athedateofthisreport,a trialdatehasbensetforjuly198.itistheopinionofmanagementhathiscasehasnoprobablemeritand wilnotresultinanyliabilitytothehospital. EmployesoftheHardtnerMedicalCenterarecoveredbytheFederalSocialSecuritySystem.TheHospital providesadministrativeasistancetoitsemployeswhoparticipateinasalaryreductionplanundersection405(b) oftheinternalrevenuecode.however,thehospitaldoesnotcontributetotheplan. ThegeneralobligationbondsoftheDistrictwerepaidbyanadvaloremtaxleviedontaxablepropertywithinthe District.Algeneralobligationbondswereretireduring197.Afteretiringthegeneralobligationbondsand payingaladministrativefes,thedebtservicefundhadanexcesof$18,913.senote12forthetreatmentofthis Fundingfora1981expansionprogramatheHospitalwasprovidedbytheisuanceof$1,376,0revenuebonds and$348,0fromearningsacumulatedbythehospital.thebondsbearinterestatfivepercentperanumand arepayableoveraperiodof40years.theywereacquiredbythefarmershomeadministrationandaresecured byapledgeofincome,revenuesandreceiptsderivedbythehospital. 18
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS Ola,Louisiana SEPTEMBER30,197 Thefolowingisasumaryoflong-termdebtprincipaltransactionsfortheyearendedSeptember30,197 (Continued) Long-Term General Debt Revenue Bonds Balance,beginingofyear Redemed $910,0 Balance,endofyear $865,0 45,0 Scheduledanualdebtservicerequirementsareasfolows Revenue 201 19819 $93,250 Bonds 90,750 202 93,250 90,50 203-2010 Totalpayments Lesamountrepresentingintere~ 1,19,0 738,50 92,750 Bondprincipalandinterestpayableinthenextfiscalyearare$50,0and$43,250,respectively Totalprincipaloutstanding (34,0) 19
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS Oila,Louisiana SEPTEMBER30,197 TheDistrictisobligatedunderaleaseforcomputerequipmentwhichisacountedforasacapitalease.Asets undercapitaleasetotaled$24,867atseptember30,197,andacumulateddepreciationontheseasetstotaled $3,727.Thefolowingisascheduleofutureminimumleasepayments. 198 Payments Lease $8,525 201 202 8,525 3,497 Totalminimumleasepayments Lesamountsrepresentinginterest 37,597 Presentvalueofnetminimumleasepayments $32,757 4,840 TheHospitalServiceDistrictisanot-for-profitcorporationasdescribedinSection501(c)(3)oftheInternalRevenue Codeandisexemptfromfederalandstateincometaxes. Forthepurposeofthestatementsofcashflows,theHospitalServiceDistrictconsidersthefolowingacountswith amaturityofthremonthsorlesascashandcashequivalents: Cash,curentasets Asetswhoseuseislimitedunderevenuebondagrement Cashandcertificatesofdeposit Revenuebondandinterest-sinkingacount Revenuebondreserveacount Depreciationandcontingencyfund 12,632 104,864 246724 19,28 Totalcashandcashequivalents $405326 20
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA NOTESTOFINANCIALSTATEMENTS Ola,Louisiana SEPTEMBER30,197 TheHospitalenteredintoanagrementwithSunriseBehavioralHealth,Ltd.,(SBH),efectiveOctober196,to establishandprovideprogramsforthetreatmentofemotionalproblemsandpsychiatricdisordersthrougha BehavioralHealthUnitoconsistofaminimumoftenbedsinawingoftheHospital.TheHospitalistoprovide romandboard,medicalrecordservices,fodservices,housekepingservices,laundryandlinenservicesandto bilandcolectfortheseservices.sbhshalprovidethestafofthebehavioralunit,theplaning,administering, supervisionoftheprogramandshalbilmedicareforalclinicalandmedicalservicesprovidedtothepatients.the HospitalshalpaySBHamanagementfeof$475perpatientdayofservicesprovided.Thisagrementisefective foratermofiveyears,cancelablebyeitherpartywithninetydays'notice. Thedebtservicefundwasestablishedtoserviceanoriginalisueof$50,0generalobligationbondsdated March1,1967,payableoveraperiodofthirtyears,withaninterestrateofourtofivepercent.Thefinalpayment ofbondprincipalandinterestonthisisue,aswelasalknownadministrativefes,wasmadeduring197.the debtservicefundhadanexcesof$18,913aftermakingthesepayments.thisamountwastransferedtothe HardtnerMedicalCenterenterprisefundandplacedinacertificateofdeposit.Managementintendstousethese fundsinacordancewiththeprovisionsoftheadvaloremtaxlevyunderwhichthefundswerecolected. Thedebtservicefundbeginingbalancewasrestatedtoshowtheresidualequitytransferof$18,913.Thiscredit washownasanaditiontopaid-incapitalonthehardtnermedicalcenterenterprisefundasfolows: Pald-mcapital,beginingasoriginalystated Residualequitytransfer $1,048,825 Paid-incapital,beginingasrestated $1,067,738 18,913 21
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana SUPLEMENTALINFORMATIONSCHEDULES
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana COMBININGBALANCESHET ALENTERPRISEFUNDS September30,197 ScheduleI MaintenanceConcesionCenter Operations And Hardtner Medical Totals Cashandinvestments Cash,checking Receivables Certificatesofdeposit 10,493$0 145,028$ 50.0 158,602 50,0 Patientservices,netofalowancesof$1,24,172 Estimatedthird-partypayorsetlements Interest Rent 00 1,686,961 158,015 1,686,~81 158,015 Suplies Miscelaneous 3,081$0080 18 Asetswhoseuseislimited Prepaidexpenses 0724 98,691 2,31400 17,94 98,691 2,3148018 18,718 Byagrementwiththird-partypayersfor Underevenuebondagrement fundedepreciation 0 0 378,872378,872 Revenuebondandinterestsinkingacount Revenuebondreserveacount 00 t2,632 Depreciationandcontigencyfund 6 104,86412,632 19,28 Properly,plantandequipment 19,28 Landimprovements Buildings Equipment,furnitureandfixtures Acumulatedepreciation 162,707 0 O 4,615 4,615 13.53 3,847 001,426,4211,589,128 02,012,4062,025,959 35,512 39,359 (Continued) TOTALASETS (131,80) 62,832~;10,61~3,953,31~4,016,74 0(2,760,2)(2,892,102)
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA ALENTERPRISEFUNDS Ola,Louisiana COMBININGBALANCESHET September30,197 Scheduta1 Operations And Hartdner MaintenanceConcesionsCenter Medical Totals Liabilities Acountspayable Salariespayable Curentportionofcapitalease $ 575$ Acuredvacationpayable Estimatedthird-partypayorsetlements 0 Payablefiomasetswhoseuseishm~ted 0O 05 000 27,38$ 32,808 6,914 41,3790 27,963 32,808 6,914 41,3790 Revenuebondspayable Acruedbondinterestpayabte 865,0865,0 Equityandothercredits 575$ 0 0 0$1,323,135$1L323,710 39,646 39,646 Contributedcapital Retainedearnings: Reservedforevenuebond: $ 0$ 0$1,067,738$1,067,738 Sinkingacount Unreserved Reserveacount Depreciationandcapitalimprovement 0 0 12,632 104,864 19,28 12,632 104,864 19,28 Totalequityandothercredits 52~257 10~611,315~7341378602 TOTALIABILITIES,EQUITYANDOTHERCREDITS~52r832~;10161~ $4r016174 24
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA ALPROPRIETARYFUNDS Ola,Louieiana COMBININGSTATEMENTOFREVENUES,EXPENSES, ANDCHANGESINRETAINEDEARNINGS YearEndedSeptember80,197 Schedule2 Operations MaintenanceConcesionCenter And Hardtner Medical Total REVENUES Netpatientservicerevenues ContributionsfromAmbulanceServiceDistrict StateofLouisiana,EmergencyServicesgrant 0$ Vendingmachinecomisions 0$5,484,498$5,484,498 86,40 86,40 Rentals,physicians'ofices Cafeteriasales 7,20 2,787 25,0 0 25,0 2,787 7,20 OPERATINGEXPENSES 7,20$2.78755,61,737$5,621,724 0 0 15,839 15,839 Dailypatientservices Nursingservices Otherprofesionalservices 0$ 0$829,012$829,012 Generalservices Administrativeandfiscalservices Employebenefits 9,905 768601,146 02,010,0642,010,064 01,24,3691,24,369 61,819 Depreciation Provisionforbadebts Interestexpense 7,34 0381,357 381,357 0254,624 254,624 0 0120,391 0541,75 0 47,341 127,725 541,75 47,341 OPERATINGINCOME(LOS) NONOPERATINGREVENUES(EXPENSES) (10,039)$2,019$(418,342)$(426,362) Interestrevenue: Other Unrestrictedasets Asetswhoseuseislimited 0$ 0 0$28,047$28,047 0 28,98 12,858 28,98 Totalnonoperetingrevenues(expenses) 0$ 0$69,893$69,893 12,858 INCOME(LOS)BEFOREOTHERFINANCING RETAINEDEARNINGS,BEGINING SOURCES(USES) $(10,039)$2,019$(348,49)$(356,469) RETAINEDEARNINGS.ENDING $62,296$8.59251,910,907$1,981,795
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA ALPROPRIETARYFUNDS Ola,Louisiana COMBININGSTATEMENTOFCASHFLOWS YearEndedSeptember30,197 Schedule3 Operations CASHFLOWSFROMOPERATINGACTIVITIES MaintenanceConcesionCenter And Hardtner Medical Total Income(los)fTomoperations Adjustmentstoreconcilenetincome(los)to netcashprovidedby(usedin)operatingactivities: $(10,039}$2,019,~(418,34.2)$(426,362) Provisionforbadebts Depreciationexpense interestpaidoncapitaland relatedfinancingactivities 7,34 0 541,75 (increase)decreasein: Acountsreceivable,patients 00 120,391 541,75 127,725 Acountsreceivable,third-partypayors Suplies (1,026,693) 47,341 47.341 Prepaidexpenses Increase(decrease)in: Other Acountspayable,trade 03870 (3,474) 1,209 23,463 6,989 (1,026.693) (3,474) 1,209 7,375 Acountspayable,third-partypayors Otherevenues Salariespayable 23,463 Acruedvacationpay 56,042 56,042 (2,97) 3.85 4,030 ~,97) 3.85 4,030 Netcashprovidedby(usedin) 7,721$ 0 0 0$(105,182) 12,65~ 12858 (Continued) operatingactivities (2,318). 2,019 (523,524)(523,82~3 26
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA ALPROPRIETARYFUNDS Ola,Louisiana COMBININGSTATEMENTOFCASHFLOWS YearEndedSeptember30,197 OperaUons Schedule3 CASHFLOWSFROMCAPITALANDRELATED MaintenanceConcesionCenter And Hardtner Medical Total FINANCINGACTIVITIES Purchaseofproperty,plantandequipment CapitalcontributedbyDebtService Capitaleaseobligations: o$ 05 Hospitalrevenuebonds: Principal Interest Principal 0o o (24,797)$ 18,913 (7,674) (1,529) (24,797) 18,913 (7,674) Interest (1,529~ Netcashusedincapitaland 0 (45,0) (45,501) (46,0) CASHFLOWSFROMINVESTINGACTIVITIES relatedfinancingactivities Decrease(increase)inrestrictedasets Interestreceived Decrease(increase)incertificatesofdeposit 0 57,516 57,035 52,434 57,516 57,035 52,434 NETINCREASE(DECREASE)INCASHAND Netcashprovidedbyinvestingactivities CASHEQUIVALENTS CASHANDCASHEQUIVALENTSATBEGINING CASHANDCASHEQUIVALENTSATEND OFYEAR OFYEAR 27
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA SCHEDULEOFALLOWABLECOSTS Ola,Louisiana ASOFANDFORTHEYEARENDEDSEPTEMBER30,197 TheHospitalreceivedagrantof$25,0forthestatefiscalyearendedJune30,197,fromtheComunity-Based andruralhealthcarefund,inordertopayphysicians'fesforemergencyromservicestoindigentandlowincomecitizensinlasaleparish. Amount Grant Received $25,0 Amount _._~0 $25.o Soent TheHospitalmetherequirementsforeivingandspendingthesefundsasetforthintheagrementwiththe _~o DepartmentofHealthandHospitalsandAct810ofthe192regularsesionoftheLouisianaLegislature. 28
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana OTHEREPORTSREQUIREDBY C'f)VFRNMI~,NTAIDITINGSTANDARDS 29
~0OPA. NeverUnder~i~t~TheValues~ Ar,r,~.N,GREN&COMPANY,LP 2414FerandStret CERTIFIEDPUBLICACOUNTANTS Monroe,Louisiana71201 Telephone(318)38-42 Monroe,Louisiana7121-6075 Web:htp:/w.alengrencpa.com Facsimile(318)38-464 PostOficeBox6075 ErnestL.Alen,CPA AtuningCoqa) (AProfeslo,'ml MargieWiUiamson,CPA TimGren.CPA PerformedinAcordancewithGovernmentAuditin~Standard ReportonComplianceandonInternalControloverFinancial ReportingBasedonanAuditofFinancialStatements BoardofComisioners HospitalServiceDistrictNumberOne Ola,Louisiana oftheparishoflasale,stateoflouisiana WehaveauditedthefinancialstatementsoftheHospitalServiceDistrictNumberOneoftheParishofLaSale,state oflouisiana,asofandfortheyearendedseptember30,197,andhaveisuedoureporthereondated December2,197.Weconductedourauditinacordance~vathgeneralyaceptedauditingstandardsandthe standardsaplicabletofinancialauditscontainedingovernmentauditingstandard GeneraloftheUnitedStates. isuedbythecomptroler Compliance AspartofobtainingreasonableasuranceaboutwhetherHospitalServiceDistrictNumberOneoftheParishof LaSale'sfinancialstatementsarefreofmaterialmistatement,weperformedtestsofitscompliancewithcertain provisionsoflaws,regulations,contractsandgrants,noncompliancewithwhichcouldhaveadirectandmaterial efectonthedeterminationofinancialstatementamounts.however,providinganopiniononcompliancewith thoseprovisionswasnotanobjectiveofourauditand,acordingly,wedonotexpresuchanopinion.theresults ofourtestsdisclosednoinstancesofnoncompliancethatarerequiredtobereportedundergovernmentauditin~ Standard~s Intcma!Conu'olOverFmancmlRcDortmg Inplarmgandperformingouraudit,weconsideredLaSaUeParishScholBoard'sinternalcontroloverfinancial reportmginordertodetermineourau&tingproceduresforthepurposeofexpresingouropiniononthefinancial statementsandnotoprovideasuranceontheinternalcontroloverfinancialreporting.however,wenotedcertain matersinvolvingtheinternalcontroloverfinancialreportinganditsoperationthatweconsidertobereportable conditions.reportableconditionsinvolvematerscomingtouratentionrelatingtosignificantdeficienciesinthe designoroperationoftheinternalcontroloverfinancialreportingthat,inourjudgment,couldadverselyafect LaSaleParishScholBoard'sabilitytorecord,proces,sumarizeandreportfinancialdataconsistentwiththe asertionsofmanagementinthefinancialstatements.areportableconditionisdescribedintheacompanying scheduleofindingsandquestionedcostsasitem97-1. Member:AmericanInstituteofCertledPublicAcountants,SoetyofLouisianaCertifiedPublicAcountantsand AmencanInstituteofCertifiedPublicAcountantsDivisionforCPAFirms
BoardofComisioners HospitalServiceDistrictNumberOne Ola,Louisiana oftheparishoflasale,stateoflouisiana Amaterialweaknesisaconditioninwhichthedesignoroperationofoneormoreoftheinternalcontrol componentsdoesnotreducetoarelativelylowleveltheriskthatmistatementsinamountsthatwouldbematerial inrelationtothefinancialstatementsbeingauditedmayocurandnotbedetectedwithinatimelyperiodby employesinthenormalcourseofperformingtheirasignedfunctions.ourconsiderationoftheinternalcontrol overfinancialreportingwouldnotnecesarilydisclosealmatersintheinternalcontrolthatmightbereportable conditionsand,acordingly,wouldnotnecesarilydisclosealreportableconditionsthatarealsoconsideredtobe materialweakneses.however,webelievethereportableconditiondescribedaboveisnotamaterialweaknes. Duringourauditwenotedseveralthingsabouthefinancialoperationswhichweincludedinaseparatemanagement leter. ThisreportisintendedfortheinformationoftheBoard,managementandfederalawardingagenciesand pas-throughentities.however,thisreportisamaterofpublicrecordanditsdistributionisnotlimited. Monroe,Louisiana ALEN,GREN&COMPANY,LP December2,197 31
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA STATUSOFPRIOREPORTABLECONDITIONS OUa,Louisiana ASOFANDFORTHEYEARENDEDSEPTEMBER30,197 Securent-yearcoment97-tmtheScheduleofReportableConditions. 32
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA STATUSOFPRIORAUDITFINDINGSANDQUESTIONEDCOSTS Ola,Louisiana ASOFANDFORTHEYEARENDEDSEPTEMBER30,197 Thisitemhasbenresolved. 3
HOSPITALSERVICEDISTRICTNUMBERONEOFTHE PARISHOFLaSALE,STATEOFLOUISIANA Ola,Louisiana ASOFANDFORTHEYEARENDEDSEPTEMBER30,197 SCHEDULEOFREPORTABLECONDITIONS 9%1 CONDITION:Employesinthebusinesomceperformoverlapingacountingproceduresinseveral areasincludinga~ountspayable,cash,acountsrecewable,andrevenuepostingtransactions. managementinacountingforandsafe-guardingasetsunderitscontrolandreducingerorsandomisions Separationofacountingdutieshasbenshowntoasist Alackofpersonelpreventsadequateseparationofduties. reportingitsfinancialinformationandinsafeguardingitsasets. TheHospitalasumesaditionalrisksinsumarizing,recordingand changesmadewhereposibletoreasignincompatibleduties.areviewofeachemploye'sworkshould beasignedandrotatedamongtheotheremployeswhoareindependentoftheproces. Jobdescriptionsandutiesofthebusinesoficestafshouldbereviewedand nothaveunlimitedacestothegeneraledger.theadministratorperiodicalyreviewsthentirepayrol Preparationofthepayrolhasbenasignedtonemployewhodoes function.otherdutieswilbereviewedtoseifanyaditionalseparationofdutiescanbestablishedwith thexistingstaf.itisnotcostefectiveforthehospitaltohireadequatepersonelforthispurpose.the administratorasistsinbankreconciliation.
~lecpa. Nove~Un~erNbmateTheValue~ _AT,T,~N,GREN&COMPANY,LP CERTIFIEDPUBLICACOUNTANTS IC("~,"~,':~' 2414FerandStret Monroe,Louisiana71201 Telephone(318)38-42 Mr.DavidHamner,Administrator HardtnerMedicalCenter Ola,Louisiana71465 DearDavid, PostOficeBox6075O~:~!~":D'9,'~ Monroe,Louisiana7121-60R5~J:u~.,.:u Facsimile(318)38-464 Web:htp:/Iw.alengrencpa,com Ernest'L1R~,~,CPA IAP~r'~ A~unhngCorp) E~!rj:30 TimGren.CPA MargieWiliamson,CPA Asaresultofouraudit,wenoticedseveralthingsthatwediscusedwithyouabouthefinancialoperationsofthe hospital,weareincludingtheseinthisleter. l.acountsreceivable.acountsreceivablehavegrownsteadilyoverthepastseveralyears.duringthe monthsafterthecloseofthefiscalyear,theyincreasedsubstantialy.partofthisgrowthisrelatedtothe largermedicarepopulation.thereisadelaybetwenthetimeapatientisdischargedandthetimethat thebilisubmitaltomedicareandpaid.therefore,someincreaseinmedicarereceivablesistobe expected. Thisituationhasreducedcashflowandcausedthehospitaltodrawonitscashreserves.Webelieveit isvitaltothefutureofthehospitalthateveryefortbemadetocolecthesereceivablesasquicklyas posible.procedureshouldbestartedtoinsurethateverybilisprocesedasquicklyasposible.while therehavebenimprovementsbythedoctorstoprovidediagnosesonpatientswhohavebendischarged, thephysicianshouldbencouragedtocoperatetothefulestinthisregard. 2.ComnuterSoftware.Wehaveworkedwithseveralworkshetsthathavetobemaintainedthroughout theyearwhicharepreparedmanualy.webelieveasignificantamountoftimecouldbesavedifthese workshetswerekeptonspreadshetsuchaslotus123ormicrosoftexcel.pcworkstationsandprinters havecomedownconsiderablyinpriceandwouldbeaverygodbargainforthehospitalduetoincreased spedandacuracy.thesefilescanalsobetransmitedtousthroughtheintemetandprovidexcelent filesuportandocumentation.withanetworkinterfacecard,someoftheseworkstationscouldbe conectedtotheas40therebyprovidingacestosomeofthefilesthatcanbedownloaded. 3.MedicalRe~ord~Software.Weunderstandthatyouareconsidengclmgproposalsfortheinstalation ofcomputersoft,areinmedicalrecords.thishouldimprovethemocncyinthatdepartmentandwould enhanceyourefortstospedupthebilingproces.wethinktinsisworthwhileandencourageyouto continueyoureforts.wehavefoundoneortwosourcesofsoftwareformedicalrecordsdepartmentsand aresendingthemtoyou. 4.LaborCos _,.Whileitisdificultoprojecthepatientloadinthehospital,everyefortshouldbemade toreducethehourlysalarycostswheneverposiblewithoutcompromisingpatientcare.thedtrectorof Nursingshouldbekeptaprisedofthesituationandencouragedtoworkwiththehospitalinthisregard FkMONIQUE~VP51 Member:AmericanInstituteo!CerlitiedPublicAcountants,SocietyofLouisianaCertifiedPublicAcountantsand AmericanInstituteofCertifiedPublicAcountantsDivisionforCPAFirms
Mr.DavidHanmer,Adimnisb'ator HardtnerMedicalCenter Ola,Louisiana71465 5.~ thecostsharingmethodologyshouldbecarefulyreviewed.apreliminarystudywaspreparedrecently, butitisourunderstandingthatheresultswereinconclusive.althoughitmaynotprovideaprofitonthe.beanseofrecentchangesinthemethodofreimbursementfortheaseloadinthisunit, resourcesprovidedbythehospital,itshouldatleastcoverthedirectcostsandcona'ibutetowardthe alocableredirectcosts.thestatisticsinthecostreportcanbeusedtohelpmakeadeterminationinthis regard. Ifyouhaveanyquestionsorcomentsregardingthisleter,pleaseletusknow.Wewilbehapytoansweryour questionsandhelpinimplementingthem. ErnestL.Alen,C~?A ELA:mpk Enclosures