The Madison Parish Hospital in Tallulah, Louisiana, is under further investigation after an initial accounts payable audit revealed several instances of poor financial management within its records.
According to The News Star, for the 2011 fiscal year, the audit report stated that evidence was found of unreconciled accounts payable and receivables, insufficient internal controls, severe lack of financial documentation and many other discrepancies. Misappropriation of public funds was also discovered, as the healthcare facility had used some of the money to pay for non hospital-related expenses. Madison's credit cards were used several times for unauthorized purchases by employees and executives. The audit also revealed that the hospital's total revenues for 2011 came in at $15.1 million, but it's operating costs amounted to $15.5 million. This led to a $438,997 loss for the facility, the source reports.
Madison Parish Hospital will be going under more financial investigation by the state, notes KNOE-TV. This audit is expected to be finished later this month. The findings from the AP audit resulted in the hospital's CEO, Wendell Alford, to resign from his position. Additionally, five members of its board quit once the report was released.