NEWS RELEASE Contact: FOR RELEASE Auditor of State Mary Mosiman today released an audit report on Sample Hospital, Anywhere, Iowa. The Hospital's revenues totaled $____________ for the year ended June 30, 2017, a(n) ____ % increase (decrease) from the prior year. The revenues included $__________ of net patient revenue, $__________ of other operating revenue, $__________ of gifts and bequests and $__________ of interest on investments. Expenses for the year June 30, 2017 totaled $__________, a(n) ____ % increase (decrease) from the prior year, and included $__________ for _____a_____, $__________ for _____b_____ and $__________ for _____c_____. (a,b,c - categories with three highest expense totals.) The significant increase (decrease) in revenues and expenses is due primarily to __________________________________________________________________________________________. A copy of the report is available for review in the Hospital Administrator’s office, in the Office of Auditor of State and on the Auditor of State’s web site at . # # #
Net Pension Liability, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions – At June 30, 2017, the Hospital reported a liability of $2,892,438 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Hospital’s proportion of the net pension liability was based on the Hospital’s share of contributions to IPERS relative to the contributions of all IPERS participating employers. At June 30, 2016, the Hospital’s proportion was .058546%, which was a decrease of .000534% from its proportion measured as of June 30, 2015. For the year ended June 30, 2017, the Hospital recognized pension expense of $265,385. At June 30, 2017, the Hospital reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: $394,260 reported as deferred outflows of resources related to pensions resulting from Hospital contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending June 30, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: There were no non-employer contributing entities to IPERS.
IV-D-17 Business Transactions – Business transactions between the Hospital and Hospital officials are detailed as follows: This does not appear to be a voidable conflict of interest pursuant to Chapter 347.9A(2)(a) of the Code of Iowa which permits a direct interest of less than or equal to $1,500 of transactions between a Hospital Trustee or a Hospital Trustee’s spouse and the Hospital. IV-E-17 Board Minutes – No transactions were found that we believe should have been approved in the Board minutes but were not. IV-F-17 Deposits and Investments – No instances of non-compliance with the deposit and investment provisions of Chapters 12B and 12C of the Code of Iowa and the Hospital’s investment policy were IV-G-17 Publication of Bills Allowed and Salaries – Chapter 347.13(11) of the Code of Iowa states, “There shall be published quarterly in each of the official newspapers of the county as selected by the board of supervisors pursuant to section 349.1 the schedule of bills allowed and there shall be published annually in such newspapers the schedule of salaries paid by job classification and category...”. The Hospital did not publish a schedule of bills allowed or a schedule of salaries paid as required by the Code of Iowa. Recommendation – The Hospital should publish the schedule of allowed and salaries by job classification in accordance with Chapter 347.13(11) of the Code of Iowa and a Supreme Court decision dated September 18, 1996. Response – The Hospital will comply with the publishing requirements set forth in Chapter 347.13(11) of the Code of Iowa and the Supreme Court Case dated September 18, 1996. Conclusion – Response accepted. IV-H-17 Financial Condition – The Hospital has a deficit unrestricted fund balance of $2,018,980 at June 30, 2017. Recommendation – The Hospital should investigate alternatives to eliminate this deficit to return this fund to a sound financial position. Response – The deficit was the result of recognizing the Hospital’s proportionate share of IPERS’ net pension liability. The Hospital realizes this liability is not due and payable immediately. Rather the pension liability will be paid down over a period of time with the Hospital’s future employer share of IPERS contributions. Conclusion – Response accepted.