Client Description
A Maine hospital, classified as a governmental entity.
Problem/Issue
The hospital had been with the same auditing firm for 25 years and had filed a Form 990 with the IRS for each of those years. With the Form 990 becoming substantially more complex and time consuming to complete, the financial staff was devoting more and more time to fill out and file the form.
BerryDunn's Solution/Approach
When BerryDunn was selected as the new audit firm, BerryDunn hospital advisors:
- Pursued the possibility that the hospital was not required to file Forms 990 (it was a government entity after all)
- Reviewed the enabling legislation and applied to the IRS for a definitive determination
Outcomes
- The hospital is no longer required to file Forms 990, receiving the immediate benefit of the associated cost and time savings.
- They are no longer required to make the associated (and expanded) disclosures from Form 990 and Schedule H including the executive compensation information, always a sensitive issue in a small community.
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