Georgetown Hospital,a Governmental Hospital,recorded During Its Fiscal Year Ended September

question 40

Essay

Georgetown Hospital,a governmental hospital,recorded during its fiscal year ended September 30,gross patient services valued at $15,000,000,excluding charity care services of $1,600,000.However,contractual adjustments by third-party payors amounted to $1,200,000.In May of that year it received donated medical supplies worth $2,000; supplies it had planned to purchase had it not been for the gift.At year-end,the governing board set aside investments in the amount of $500,000 for future plant expansion and $250,000 to be invested with the related earnings used for a special prenatal care program.
1.In its operating statement for the year ended September 30,how much Georgetown should report as net patient services revenue? Justify your answer.
2.For the year ended September 30,how should the donation of medical supplies be reported?3.What amount of unrestricted net position should Georgetown report in its balance sheet as board designated,assuming it had no board designated net position at the beginning of the year?

Explain the limitations of internal control systems, including human error and fraud.

Describe the role and significance of cash and cash equivalents in financial reporting.

Understand the practices for maintaining and demonstrating accountability in transactions involving cash and cash equivalents.

Recognize the impact of technology on improving internal control systems and reducing errors.

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Definitions:

Desired Results

Specific outcomes or objectives that an individual or organization aims to achieve through their actions or strategies.

Control Equation

A tool or formula used in management and operations to assess and maintain the balance between desired outputs and various inputs or processes.

Performance Expectations

The standards or requirements set by an employer regarding how tasks should be performed and goals should be achieved by employees.

Performance Deviations

Refer to variances between actual performance and the expected standard or goals, necessitating corrective actions or adjustments.