Van_Nuys_Community_Hospital英文资料.pdf

HBSP Product Number TCG145 THE CRIMSON PRESS CURRICULUM CENTER THE CRIMSON GROUP, INC. Van Nuys Community Hospital In late April, Lawrence Higgins, President of the Board of Trustees of Van Nuys Community Hospital, was reviewing the report of the hospital’s independent auditors (Exhibit 1). Included with the report were the hospital’s financial statements for 2009 with comparative figures for 2008. In reviewing the auditors’ report, Mr. Higgins was not particularly surprised. He knew that the hospital had been experiencing some financial difficulties, and that discussions had been underway for most of 2009 and into 2010 about how to deal with them. Indeed, he had been heavily involved in the decision to terminate inpatient acute care services earlier in the month. He was particularly concerned, however, about the auditors’ statement that there was “…substantial doubt about the Hospital’s ability to continue as a going concern.” In an effort to better understand the auditors’ perspective, Mr. Higgins decided to scrutinize the financial statements and then use them to assist him in structuring the agenda for the upcoming board meeting. Assignment: 1. Identify and analyze the issues that you think are the most important with regard to the hospital’s financial con- dition, paying particular attention to the underlying causes of the “going concern” paragraph in the auditors’ opinion letter. 2. Explain, in layperson’s terms, why the hospital, despite having had a decrease in net assets (i.e., a loss) in 2009 of $411,522, had an increase in cash of $3,055. 3. In light of your answers to Questions 1 and 2, prepare a set of recommendations that Mr. Higgins can distribute to the board for its consideration. Be sure to include your