Department of Institutions, Central Office, Report On Examination of Financial Statements 1982

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Since this law gives heirs first claim to estates, the probability for collecting the $2,265,000 is remote. The department should separate these accounts into an inactive ledger and not record the receivable on the accounting system.
At fiscal year-end 1982 Boulder River School and Hospital, Galen State Hospital, and Warm Springs State Hospital ledgers carried delinquent accounts receivable from a health service corpor- ation totalling $324,088. These accounts have been accumulating since 1973.
... The corporation has denied payment stating their policies during these years did not cover the services billed. The department should either actively seek collection of these accounts or remove them from their records by transferring it to the Depart- ment of Revenue.
RECOMMENDATION #4 WE RECOMMEND THE DEPARTMENT: A. ACTIVELY PURSUE COLLECTION OF ACCOUNTS.
B. SEPARATE INACTIVE ACCOUNTS WITH A REMOTE CHANCE OF COLLECTION IN A REASONABLE PERIOD OF TIME AND NOT RECORD THE RECEIVABLE IN THE ACCOUNTING SYSTEM.


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