An audit of Tulare (Calif.) Regional Medical Center for the fiscal year ended June 30, 2016, revealed nearly $10 million in accounting mistakes, according to the Visalia Times-Delta.
Many of the errors identified in the audit related to payroll transactions between TRMC and Healthcare Conglomerate Associates, which manages the hospital.
The accounting errors had conflicting impacts on TRMC's financial picture. The first set of audit adjustments increased the hospital's net position by $6.5 million, while a second and third set of adjustments decreased its net position by about $3 million and $289,000, respectively, according to the report.
Auditors from EideBailly concluded TRMC and Healthcare Conglomerate Associates lack internal controls to identify and stop unusual transactions. Auditors also noted the organizations lacked a process to properly prepare financial statements, according to the report.
Although the auditors criticized TRMC's management structure and accounting, the report wasn't completely negative. The auditors credited Healthcare Conglomerate Associates for guiding the hospital through "an extensive financial turnaround," according to the report.
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