Liars, Cheats and Thieves

[Native_NM]

Quick update on this. About a month ago we sent 3 certified letters to the hospital disputing the charges and demanding proof. Seems they decided we don't owe them any money after all. No proof was ever offered not even an itemized bill was sent as requested. They also didn't say it was a mistake. The balance just vanished. I'll let you decide on your own what happened.

A lot of the blame falls in the hands of programmers.  That sounds like a cop-out, but corporate billing systems are so complex not even the auditors or CPA's can figure them out.  The staff that works for the companies is also powerless.  One of the by-products of Enron was Sarbanes-Oxley.  The big boys have to comply with the new rules, and IT is a big part of the process.  They outsource all the programming to India or China.  The same internal controls that are built into the system to prevent fraud also make it hard for the guys running the system to correct mistakes.  It is a huge problem, that costs the country billions.  Ironic that the fix costs the country more than the original problem.  I could write a thesis - a book even - on what I have learned as an insider.  It would scare you. 

We were double-paid by a few years back.  It was a pretty large check - ~$10,000.  We returned it.  The company that paid it - a Fortune 250 company - sent it right back.  I spoke directly with the Controller of the unit that had overpaid.  The story:  They had installed a new system, and had just been certified.  It was the middle of audit season.  If I sent it back and the returned transaction was picked during testing, the auditors would know their system had an internal control weakness.  Since they had already made their audit selections for the the year, and the original transaction was not picked, she (Controller) felt as though they were in the clear.  The check was large enough to cause an IT testing problem, but too small for financial statement purposes. During a year-end audit, outside auditors pick a large sample to test.  Later, right before they issue the audit, another sample is selected - subsequent testing.  In April, they pick another batch for the first quarter.  For a public company that ends the fiscal year in December, January to April is non-stop auditors.  First the 10-K, then a 10-Q.  I suggested we just hold it and apply it as a credit against a future transaction.  No dice.  Her system had built-in safeguards to detect that kind of thing from happening.  It would have given a flag to the auditors.  I did not want it, because I have my own auditors to worry about.  She elevated the problem to some VP guy, who called me and asked me very nicely to just deposit the money.  I was not comfortable just keeping the money, so I recorded it as a liability.  Last year, we were having a Board meeting, and we decided to just recognize it as revenue.  That company gave us $10,000 because they were more afraid of the Sarbanes- Oxley penalty than they were losing the money.  And their system was so complex there was no way for her to take the money back. That is crazy.

Anyway, I'm glad it all worked out, and hope your wife recovers quickly.

[NM_Shooter]

Quick update on this. About a month ago we sent 3 certified letters to the hospital disputing the charges and demanding proof. Seems they decided we don't owe them any money after all. No proof was ever offered not even an itemized bill was sent as requested. They also didn't say it was a mistake. The balance just vanished. I'll let you decide on your own what happened.

This is good news, and I hope it is followed by more.  Be well!

[Sassy]

So glad to hear things worked out...  hopefully you are feeling better & the stress level has decreased.