University of North Carolina Hospitals - Financial Statement Audit

Nc State Auditor

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• Publié par: Bavem
• Nombre de lectures: 10
• Langue: English

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STATE OF
N ORTH CAROLINA



UNIVERSITY OF NORTH CAROLINA HOSPITALS
CHAPEL HILL, NORTH CAROLINA
FINANCIAL STATEMENT AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2009







OFFICE OF THE STATE AUDITOR
BETH A. WOOD, CPA
STATE AUDITOR UNIVERSITY OF NORTH CAROLINA HOSPITALS
CHAPEL HILL, NORTH CAROLINA
FINANCIAL STATEMENT AUDIT REPORT
FOR THE YEAR ENDED JUNE 30, 2009




BOARD OF GOVERNORS
THE UNIVERSITY OF NORTH CAROLINA
ERSKINE B. BOWLES, PRESIDENT
BOARD OF DIRECTORS
DR. CHARLES A. SANDERS, CHAIRMAN
ADMINISTRATIVE OFFICERS
GARY PARK, PRESIDENT
CHRISTOPHER S. ELLINGTON, CHIEF FINANCIAL OFFICER STATE OF NORTH CAROLINA
Office of the State Auditor

2 S. Salisbury Street
20601 Mail Service Center
Raleigh, NC 27699-0601
Telephone: [phone]
Fax: [phone]
Beth A. Wood, CPA Internet
State Auditor http://www.ncauditor.net

AUDITOR’S TRANSMITTAL
The Honorable Beverly E. Perdue, Governor
The General Assembly of North Carolina
Board of Directors, University of North Carolina Health Care System
We have completed a financial statement audit of the University of North Carolina Hospitals
for the year ended June 30, 2009, and our audit results are included in this report. You will
note from the independent auditor’s report that we determined that the financial statements
are presented fairly in all material respects.
The results of our tests disclosed no deficiencies in internal control over financial reporting
that we consider to be material weaknesses in relation to our audit scope or any instances of
noncompliance or other matters that are required to be reported under Government Auditing
Standards.
North Carolina General Statutes require the State Auditor to make audit reports available to
the public. Copies of audit reports issued by the Office of the State Auditor may be obtained
through one of the options listed in the back of this report.

Beth A. Wood, CPA
State Auditor
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITOR’S REPORT............................................................................................1
MANAGEMENT’S DISCUSSION AND ANALYSIS ..........................................................................3
BASIC FINANCIAL STATEMENTS
Hospitals Exhibits
A-1 Statement of Net Assets...............................................................................................9
A-2 Statement of Revenues, Expenses, and Changes in Net Assets ..........................................11
A-3 Statement of Cash Flows ...........................................................................................12
Notes to the Financial Statements ..............................................................................................15
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT
OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT
AUDITING STANDARDS ..............................................................................................................53
ORDERING INFORMATION........................................................................................................55
STATE OF NORTH CAROLINA
Office of the State Auditor

2 S. Salisbury Street
20601 Mail Service Center
Raleigh, NC 27699-0601
Telephone: [phone]
Fax: [phone]
Beth A. Wood, CPA Internet
State Auditor http://www.ncauditor.net

INDEPENDENT AUDITOR’S REPORT
Board of Directors
University of North Carolina Health Care System
Chapel Hill, North Carolina
We have audited the accompanying basic financial statements of the University of North
Carolina Hospitals, which is a part of the University of North Carolina Health Care System,
which is a part of the multi-campus University of North Carolina System, a component unit of
the State of North Carolina, as of and for the year ended June 30, 2009, as listed in the table
of contents. These financial statements are the responsibility of the Hospitals’ management.
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the
United States of America and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the financial statements present only the University of North Carolina
Hospitals and are not intended to present fairly the financial position of the University of
North Carolina Health Care System nor the University of North Carolina System, and the
results of its operations and cash flows in conformity with auditing standards generally
accepted in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of the University of North Carolina Hospitals as of
June 30, 2009, and the changes in its financial position and its cash flows for the year then
ended in conformity with accounting principles generally accepted in the United States of
America.
As discussed in Note 15 to the financial statements, the Hospitals implemented Governmental
Accounting Standards Board Statement No. 49, Accounting and Financial Reporting for
Pollution Remediation Obligations, during the year ended June 30, 2009.
1
INDEPENDENT AUDITOR’S REPORT (CONCLUDED)
In accordance with Government Auditing Standards, we have also issued our report dated
October 23, 2009 on our consideration of the Hospitals’ internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, grant agreements, and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results
of that testing, and not to provide an opinion on the internal control over financial reporting or
on compliance. That report is an integral part of an audit performed in accordance with
Government Auditing Standards and should be considered in assessing the results of our
audit.
The Management’s Discussion and Analysis, as listed in the table of contents, is not a
required part of the basic financial statements but is supplementary information required by
accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding
the methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.

Beth A. Wood, CPA
State Auditor
October 23, 2009
2
UNIVERSITY OF NORTH CAROLINA HOSPITALS
MANAGEMENT’S DISCUSSION AND ANALYSIS
Introduction
The following discussion and analysis is provided by the University of North Carolina
Hospitals at Chapel Hill (Hospitals) fiscal management as an overview to assist the reader in
interpreting and understanding the accompanying basic financial statements. It includes
comparative financial analysis with discussion of significant changes between fiscal
years 2009 and 2008, as well as pertinent facts, decisions, and conditions.
Using the Financial Statements
The financial statements of the Hospitals provide information regarding its financial position
and results of operations as of the report date. The Statement of Net Assets; the Statement of
Revenues, Expenses, and Changes in Net Assets; and the Statement of Cash Flows comprise
the basic financial statements required by the Governmental Accounting Standards Board
(GASB). In accordance with the GASB, the financial statements are presented and follow
reporting concepts consistent with those required of a private business enterprise. The
financial statement balances reported are presented in a classified format to aid the reader in
understanding the nature of the financial statement balance. Notes to the Financial
Statements are an integral part of the information presented and should be read in conjunction
with the financial statements.
The Statement of Net Assets provides information relative to the Hospitals’ assets, liabilities,
and net assets as of the last day of the fiscal year. Assets and liabilities on this Statement are
categorized as either current or noncurrent. Current assets are those that are available to pay
for expenses in the next fiscal year and are anticipated to be u