Complaint Investigation Report

The utility billing statements provided for PG&E, water, and Comcast show that the licensee made full payments consistently for the months reviewed. However, utility billing statements were not provided to determine the electricity payment history for the same period or to support the electricity expense listed on the operating statement. A working capital analysis performed for the sample month showed positive working capital. However, this is not considered reliable because the licensee did not report all current liabilities, including credit cards, and did not provide supporting documentation for current assets such as short-term receivables and notes. The review of the bank statements provided did not indicate that the licensee maintained, as required by law, the equivalent of at least one month of operating expenses.

The liability insurance certificate provided during the audit period shows that the facility met the required coverage per occurrence and aggregate per facility, as required by the Health and Safety Code. However, the liability insurance policy has since expired. The Certificate of Workers’ Compensation has also expired.

Overall, based on the records provided and reviewed, there is sufficient evidence to conclude that the facility is not financially solvent.

As a result of this investigation, the department found the allegations to be SUBSTANTIATED - A finding that the complaint was Substantiated meant that the allegation was valid because the preponderance of the evidence standard had been met.

The following deficiencies were cited on the following LIC 9099-D pursuant to Title 22 Rules and Regulations, Division 6 and Health and Safety Codes.

An exit interview was conducted, a copy of this report and appeals rights were provided to the facility at the end of this visit.