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LCH Board of Trustees hears audit report

Granzow approaches Commission regarding budget cuts

Eric Otting, CPA, Managing Member of Wendling Noe Nelson & Johnson, LLC in Topeka, was on hand at the August 20 regular meeting of the Lincoln County Hospital’s board of trustees, to deliver his findings on the 2018 audit. Cameron Wirth, CPA, of the same firm, also attended. The hospital’s fiscal year runs from April 1, 2018 to March 31, 2019. The audit was conducted August 13, 2019.

The most significant issue for the hospital deals with the debt service ratio required by the hospital’s lease with the Public Building Commission. A debt service ratio is the amount of money required to make payments on the principal and interest on outstanding loans, the interest on bonds or the principal of maturing bonds. The lease with the PBC is for the hospital’s use of the bonds generated in 2008 for the modernization and remodel of the facility.

The lease stipulates a debt service ratio of 1.0, or an equal amount of gross revenue to debt repayment. For the first time since the bonds were issued, the hospital’s debt service ratio did not meet the requirement, calculated at 0.41 rather than 1.0. The cash value of this discrepancy is approximately $260,000.

 

 

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Lincoln Sentinel-Republican

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Lincoln, KS 67455
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