Weston County hospital board delays final budget after staff report large discrepancies between accounting system and cash reports

Weston County Health Services—oard members decided to delay final approval of the hospital—udget after finance staff said the accounting system and the organization—ank records tell substantially different stories about the last 12 months.

Kathy (staff member) told the board the accounting system currently shows roughly $31.9 million in annual expenses while the cash report shows about $24.7 million, a gap large enough to affect the proposed operating plan. "These amounts are so far apart," Kathy said, "and that's what's driving the request to say, okay. Can we look at something that is likely to be reliable?" She recommended grounding a near-term budget on actual cash receipts and disbursements, adjusted for known capital items and program changes.

The difference prompted several trustees to question whether the accounting data are reliable enough to serve as the basis for a legally required budget. Board member Ben said the auditors had reported material weaknesses and warned against building a budget on the accounting system until the audit is complete. "It is irresponsible and reckless to trust it until they audit," he said. Other trustees argued staff had already made substantial progress and that a workable budget was needed to give the CEO and management operational guardrails.

After discussion the board directed staff to: (1) continue developing a cash-based budget model with outside consultant John Gantner (consultant), (2) produce an updated proposed budget for a board work session on Monday, July 7 at 5:30 p.m., and (3) hold a public budget hearing and special meeting to consider adoption on Thursday, July 10 (public hearing at 5:30 p.m., special meeting thereafter) so the board can meet the statutory adoption schedule in mid-July. Allison (legal counsel) reviewed the relevant statutory notice and filing timing for special-district budgets.

Finance staff also reported other actions intended to improve future financial reporting: weekly audit follow-ups with the auditors, a charge-master review with Ready Health (a six- to eight-week engagement), consolidation options for bank accounts, and a GPO (group purchasing organization) contract and utilization review with Premier. Staff noted work remains to reclassify some pharmacy receipts and to finish booking hospital pharmacy revenue for multiple months.

Board members said they will review the consultant-backed draft at the July 7 work session and expect a public presentation and vote at the July 10 hearing/special meeting in order to meet the July statutory deadlines. Several trustees emphasized they prefer a budget grounded in bank cash trends while the underlying accounting system issues are resolved.

Ending: The board did not adopt a final budget at the meeting. Staff committed to deliver a revised proposal following consultant review; the board set the July 7 work session and a July 10 public hearing/special meeting for final consideration.