Today, Wellmont Health System completed a financial review which revealed the health care company overstated their earnings, according to a recent press release. Wellmont officials have declined to reveal the exact amount of the overstatement at this time.
The audit revealed the following: income from operations of $2.8 million for fiscal year 2006, $2.0 million for fiscal year 2007 and a net loss from operations of $4.59 million for fiscal year 2008. The years 2007 and 2008 have been audited by the accounting firm KPMG.
The review, which was begun in December of last year, was conducted by Wellmont’s finance team as well as the help of outside legal, accounting and auditing firms. The review identified the need for Wellmont to restate financials for fiscal years 2006 and 2007.
According to officials, the overstatement occurred because of several issues and errors in recording expenses, receivables and assets.
A press release issued earlier today states that Wellmont is taking steps to ensure that errors of this magnitude no longer occur. Most importantly, "the financial review did not identify any theft or personal gain associated with the accounting errors."
11 Connects Digital Journalist George Jackson will have more on this issue as this story progresses.
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