Trinity Medical’s net position was $13 million for 2021, an increase of approximately $5 million from the previous year, according to a Louisiana Legislative Auditor’s report.

The net position, the difference between assets and liabilities, is a way to measure financial health or financial position. Over time, sustained increases or decreases in the net position is one indicator of whether a governmental or public entity’s financial health is improving or deteriorating.

As of Sept. 30, 2021, the report indicated total assets of approximately $75.8 million while total liabilities equaled some $62.7 million.

Operating revenue increased 39 percent from the previous year to approximately $24.4 million, according to the report. This number included net patient service revenue total of some $21.8 million and other operating revenues of approximately $2.5 million.

According to the report, current assets exceeded current liabilities by $14.3 million, providing a current ratio of 4.91. Total assets increased by approximately $1 million during fiscal year 2021 and increased by some $24 million during fiscal year 2020. These changes were due in large part to the construction of a replacement hospital.

Additionally, Trinity’s concurrent portion of long-term debt was some $59.1 million, according to the report. The current portion of long-term debt was $77,000.

At fiscal year end, $39,000 was owed on Certificate of Indebtedness 2012 Series Revenue Bonds.

During fiscal year 2021, Certificates of Indebtedness Series 2021A Revenue Bonds and 2021B Revenue Bonds were issued related to permanent financing of the new hospital, primarily refinancing the Series 2019A Revenue Bonds that were being used for construction purposes.

At fiscal year end, some $28.3 million and $3 million were owed on Certificate of Indebtedness Series 2021A Revenue Bonds and Series 2021B Revenue Bonds, respectively.

Also included in total long-term debt are debt obligations of some $27.6 million owed on debt transactions to access additional funds through New Market Tax Credits Program, according to the report.

Meanwhile, Trinity was granted $1.8 million Paycheck Protection Program (PPP) in April 2020 but recognized the amount as loan forgiveness income in September 2021.

EideBailly, CPAs & Business Advisors of Dubuque, LA performed the audit and listed two findings.

2021-001 Preparation of Financial Statements Material Weakness

According to the report, Trinity Medical does not have an internal control system designed to provide for the preparation of the financial statements.

Auditors recommendation, “That management continue reviewing operating procedures in order to obtain the maximum internal control over financial reporting possible under the circumstances to enable staff to draft the financial statements internally. Management completed an interim cost report during 2021 to assist with estimating third-party payor settlements; however, year-end adjustments were still necessary related to Medicaid settlements. We recommend continuing to complete interim costs reports to assist in the settlement calculation at year-end.”

2021-002 Segregation of Duties Significant Deficiency

According to the report, one important aspect of internal control is segregation of duties among employees to prevent an individual employee from handling duties which are incompatible.

Auditors recommendation, “We realize that with a limited number of office employees, complete segregation of duties is difficult. We also recognize that in some instances it may not be cost effective to employ additional personnel for the purpose of segregating duties. However, the Medical Center should continually review its internal control procedures, other compensating controls and monitoring procedures to obtain the maximum internal control possible under the circumstances.”

The hospital was created by a Concordia Parish Police Jury ordinance on April 26, 1961 and was referred to as Concordia Parish Hospital until Jan. 13, 1986 when the name changed to Riverland Medical Center until Feb. 23, 2021 when the name changed again to Trinity Medical.

Trinity Medical is a 23-bed critical access hospital that provides inpatient, outpatient, emergency, private physician clinic, rural health clinic, and behavioral health services.

According to the report, Trinity Medical receives majority of gross revenues from Medicare (47 percent) followed by Medicaid (29 percent). “Other commercial” makes up 12 percent of its gross revenues while Blue Cross makes up eight percent. Private pay totals four percent of its gross revenues.

Trinity Medical is governed by an eight-person board made up of Jim Graves, Fred Butcher, Fred Marsalis, James King, Kevin Ingram, Cherie Lipsey, Randy Hoggatt and Ryan Crum.

Graves, salary is $1,100 a month while Ingram makes $1,000 monthly. Butcher, Marsalis, King and Lipsey make $900 a month, and Crum’s salary is $600 a month. Hoggatt receives $100 a month.

Agency head is Nekeisha Smith whose salary totals $154,191 yearly, according to the report.

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