Observations
Based on a review of fiscal documents presented at the time of the inspection and an interview with the facility director, the facility failed to document an annual audit of financial activities for the year ended 12/31/08.
The findings included:
During the onsite licensing inspection conducted from April 1 through 2, 2010, the fiscal documents were reviewed. The certified public accountant's dated and signed comments at the beginning of the fiscal document indicated that the document was not an audit. The letter from the accountant stated "...A review consists principally of inquiries of group personnel and individual procedures applied to financial data. It is substantially less in scope than an audit in accordance with auditing standards generally accepted in the United States of America, the objective of which is the expression of an opinion regarding the consolidated financial statements taken as a whole. Accordingly we do not express such an opinion."
The documentation presented failed to meet the requirement for the annual financial audit.
The facility director was interviewed regarding the documentation and content of the annual audit and confirmed that this was the only fiscal document available for review.
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Plan of Correction
Discovery House will conduct an audit for FY 2010. We will submit a 2009 compellation review and an engagement letter for 2010". The responsible parties for this correction will be the Program Sponsor and the Program Director.
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