Audit reveals substantial annual loss as management neglects to provide information
Marianne McGee, MA/ABS
While the Mendocino Coast Healthcare District /Mendocino Coast District Hospital special audit meeting itself was rather banal, other than it appeared the Auditor, Mr. Zarecor from Dingus, Zarecor & Associates, was presenting information in such a manner to support the current management, there are two huge issues that need to be addressed.
First, rather than ending the fiscal year with a positive bottom line of $401, 027 as presented in the June MCDH financial report, the audited final result is a negative ($724,367), which is a difference of $1,125,394! It was not clear to me exactly what and why there is such a large discrepancy, although I have heard mumbling about items being booked and recorded differently, none of which is very clear or satisfying given the glowing reports that come forward month after month.
Even more distressing is that Mr. Zarecor rather negated the idea that the legally required accompanying management’s discussion and analysis of the audit report, saying “90% of hospitals do not honor this requirement unless they are going out for a tax increase”. Hello people, MCDH is desperately seeking new tax measures, has severe public relation problems and does not want to provide this report!!! Frustrated at his unsuccessful attempt to add this to the motion to approve the MCDH Audit Report, Dr. Peter Glusker has made a formal request to CEO Bob Edwards that this be done, which is below.
People must stand up and be heard again and again, as it appears this MCDH/MCHD Board of Directors and management does not seem to be listening to the communities cry’s for transparency!! With this lack of respect, those of us who are trying to support additional MCDH funding are becoming discouraged and cynical about the hospital’s future.
October 13, 2017
This is a formal and public request for the MCDH administration to provide the board and the public with management’s discussion and analysis of the audit report as a supplement to the basic financial statements. This request “…is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.” This request is made despite the unusual and exculpatory assertion by Mr. Zarecor at the audit presentation that 90% of hospitals do not provide such a statement, themselves in violation of the Governmental Accounting Standards Board.
This formal and public request is also, and particularly, made in the context of the dramatic discrepancy between the MCDH original year end bottom line of $401,027 compared to the audited bottom line of ($724,367).
Thank you for your attention and I look forward to your cooperation.
Peter Glusker, MD
MCDH Board of Directors, Secty.
You can watch this meeting, as well as previous meetings, here on Mendocino TV and draw your own conclusions.