Audit: Memorial's software isn’t secure

A new financial audit of Memorial Health System shows that its computer system has security deficiencies that allow employees access to software programs they are not authorized to use.

Memorial Health System's board of trustees will discuss the audit findings in a special open meeting 8 a.m. Monday in the executive board room of Printers Park Medical Plaza, 175 S. Union Blvd.

The computer security issue noting "inappropriate access" also was raised in a 2006 audit. It's not clear what software programs are in question and what the ramifications of the security problem are.

Steve Goldstone, chairman of the hospital board's audit committee, said hospital officials agree with the auditors' concerns and will follow their recommendations to restrict access and allow employees clearance only for areas necessary to their jobs.
The audit of the cityowned hospital system for the year ending Dec. 31, 2007, also lists as concerns the lack of a periodic physical inventory of capital assets and issues with billing and accounts receivable.

The audit also shows growth in the system, a result of opening a new hospital last April. Inpatient volume increased 8.2 percent in 2007 over 2006, and net revenue from patient services increased 19.3 percent, according to the audit. Income from operations decreased last year by $5 million to $14.6 million, as a result of rising bad debt.

Representatives from the company that produced the audit, Stockman Kast Ryan & Co. LLP of Colorado Springs, will attend the meeting, along with representatives from the city auditor's office.

"They gave us a clean audit - in their opinion our financial statements are presented fairly in all material respects," said Goldstone, who will present the annual document to the board.

Board members will vote at the meeting whether to accept the audit, said board chairman Mike Edmonds.

CONTACT THE WRITER: 636-0235 or debbie.kelley@gazette.com