The Humboldt County Hospital District Board of Trustees received a “clean
and unmodified opinion” from auditor CliftonLarsonAllen LLP for
Fiscal Year 2017, which is the best type of report that can be received.
The designation is issued when an auditor obtains reasonable assurance
that an organization’s financial statements are free of material
Daniel Frein, a principal with the firm, told board members it is common
for organizations to have material weaknesses, significant deficiencies
or general comments, but HGH had no findings for the 2017 fiscal year.
Frein arrived with a team from CliftonLarsonAllen last August to conduct
the detailed review of the hospital’s financial information; they
returned again in September to complete the audit.
“Each year’s audit is a long process” said HGH Chief
Financial Officer Sandi Lehman, who worked with Controller Eddy Davis
and CliftonLarsonAllen’s audit team, “but we are really happy
with the results.”
“This opinion means we have the right controls in place to ensure
the hospital is recording its financial information per the latest standards,” she said.
Frein shared some highlights of the 2017 audit with board members including
that HGH has over $13 million in unrestricted assets. HGH ended the 2017
year with 150 days cash on hand; the standard for a Critical Access Hospital
is 150 days.
Frein also concurred with the hospital’s goal to reduce its accounts
receivable days. That calculation is used to estimate the hospital’s
average collection period for services rendered, and illustrates how well
a company’s accounts receivables are being managed.
The hospital has already seen a significant drop in those days, from 115
in 2015 to 69 in 2017—a remarkable feat, according to Lehman, considering
the hospital must incorporate insurance, Medicare, Medicaid and other
coverage factors before resolving a bill.
HGH CEO Art Frable said he was pleased with the FY17 audit results.
The new chief, who has been on the job for less than three months, said,
“It’s reassuring to know we have the right processes in place
to ensure the financial integrity of the hospital. That is foundational
to then ensuring the proper care of our community.”