JCHC Board Accepts Positive Audit Report

The Board of Trustees for the Johnson County Healthcare Center were given and discussed the audit report for Fiscal Year 2016 at their monthly meeting Wednesday night.

Tracy Jelly, with Cloud Peak Accounting, gave copies of the audit and spoke to the board, giving them his unqualified opinion on the audit.

Investopedia.com explains that and unqualified opinion is an independent auditor's judgment that a company's financial records and statements are fairly and appropriately presented and in accordance with Generally Accepted Accounting Principles (GAAP). It is the most common type of auditor's report.

Jelly continued by highlighting some of the findings of the audit.
The healthcare center, at the end of the fiscal year, had roughly $40 million in assets, with the Hospital Foundation having about $8 million in assets.
He said there was no debt to speak of, just $1.7 million in the hospital.
Total Operating Revenue was about $19.6 million, with expenses including depreciation at $21.4 million, for an operating loss of $1.7 million, with the county tax levy adding $2.7 million for a net increase of $1.1 million.

Jelly cautioned the board that a concern moving forward would be the expected decrease in tax revenue from the county, which could be a struggle for the facility in the future when trying to offset operational losses.

Only one small issue was identified but not included in the report. A written explanation was given to Hospital Administrator Sandy Ward that recommended the center update its investment policy to comply with current state statute.

The Board voted to approve and accept the audit report FY2016.