Audit finds Pine Valley financial statements free of material misstatement; board reviews transfers, cash and approves June vouchers

Marissa Powers, audit supervisor with Johnson Bond Company, told the Pine Valley Community Village board that the firm issued an unmodified opinion on the facility’s 2024 financial statements and identified matters that require management attention. "We did issue an unmodified opinion," Powers said, adding the audit found a "material weakness for material adjusting journal entries" and a "significant deficiency for lack of segregation duties."

The audit presentation, which Powers said summarized a larger packet of financial statements and required communications, showed total assets of about $18.9 million and an ending net position just under $3.0 million. Powers reported total operating revenues of approximately $9.9 million and operating expenses near $11.1 million, producing an operating loss of about $1.2 million; after nonoperating items and transfers, the net loss reported for the year was roughly $858,000. "We did implement two new accounting standards — GASB 100 and GASB 101 — and we detected no irregularities," she said.

The board discussed recent transfers to Richland County. Powers said the county received a larger transfer in 2024 — about $665,000 — compared with roughly $300,000 the prior year and that the transfer pattern reflects negotiations tied to Pine Valley’s cash balances. "I think the county sees how much cash you guys have, and I think they want some of that," Powers said. The audit packet also shows designated cash (for debt service and capital improvements) of about $1.7 million and unrestricted cash near $2.7 million; bond debt outstanding at Dec. 31 was just over $15 million, with principal due in 2025 of a little more than $1 million and two issuances maturing in 2035 and 2036.

Board members reviewed operating-revenue mix and census trends. Powers said Medicaid comprised about 51% of operating revenues in 2024 (roughly $5.0 million), Medicare about 20% ($2.0 million), private pay about 17% ($1.7 million) and assisted living about 10% (about $960,000). She also attributed a year-over-year revenue dip in part to fewer census days; Pine Valley’s total census days in 2024 were reported at 21,952 and occupancy about 75%.

The board considered proposed rate changes for private-pay skilled nursing and assisted living. Staff presented a recommendation to raise private-pay skilled nursing daily rates from $3.40 to $3.50 and to increase assisted-living levels by approximately $96 (about a 2% increase). No formal board vote on the rate changes is recorded in the meeting transcript.

Finance staff presented accounts receivable and cash-flow details and explained a timing issue: a delayed pharmacy invoice kept roughly $130,872 of Medicare revenue from being recorded in June and instead was posted in July, which affected the days-revenue-in-receivables metric.

The board moved to approve the vouchers presented for June. A board member made a motion to approve the vouchers and another member seconded; the chair called for the ayes and the motion passed with no recorded opposition. The meeting record does not list individual roll-call votes for voucher approval.

The audit packet, long-form financial statements and required communications remain available to the board for review, and Powers said management had accepted and recorded the audit adjustments. "We received full cooperation from Mary and the staff," she said.

The board also reviewed trend charts on net position, revenues by source and a breakout of operating expenses (nursing services accounted for the largest share of operating expense). The audit presentation ended with a reminder about outstanding bond terms and the expected payment schedule through 2036.