Complaint Investigation Report

The Audit report concluded the Licensee does not have an adequate financial plan required by law as evidence by audit requested utility bills for the period between December 2022 and May 2023. Some utility bills were provided and showed material amounts of past due on recurring basis. Electricity disconnection was also noted. Income statements/monthly operating statement LIC 401 was requested but was not provided. Instead, an operating statement for year 2022 was provided. However, the reported figures were not supported and are deemed unreliable.

Licensee provided loan documents reviewed concluded the Licensee has outstanding loans it remains unknown if the loans were paid on time, or if late feed were incurred as loan statements were not provided. Bank statements were requested but not provided. Monthly ending balances for statements that were available were compared with expenses for the bank records available. The ending balances/cash reserves were significantly lower than the monthly expenses. Negative balance was noted indicating insufficient cash reserves. Non sufficient funds, returned items, and overdraft fees noted in all 12 months.

Documentation reviewed and interview conducted with interviewee indicate Licensee failed to pay facility leases timely on recurring basis for the auditing period. Interview concluded the Licensee was behind on payments.

Property Landlord sent a vacate notice to the Licensee via email on 5/1/2023, but Licensee ignored it. In addition the lease expired and the landlord provided a lease renewal on 5/11/2023 but it was reported the Licensee refused to sign it and refused to move. However, this issue was resolved and has a current lease agreement.

In conclusion, based on documentation and information provided, Licensee does bnot have an adequate financial plan required by law and is not in good financial position, therefore based on the preponderance of available evidence we have substantiated the complaint allegation as valid and that a violation has occurred.

A copy of this report along with appeal rights and LIC 809-D were provided to Licensee at exit.