Non-compliance follow-up·April 11, 2023

On 04/11/23 Alycia Berryman, Regional Manager, Lauren Crocker, Licensing Program Manager, Donna Gurriere and Rebecca Knight, Licensing Program Analysts, Jaqueline Juarez, Audits Section Manager and Jessica Chen, Auditor held a non-compliance conference with Rajesh Rao, Sridhar Nagunuri, Sabi Bains, Ramaprasad Samudrala and Diania Bingham. The meeting was held via Teams. The following information was discussed: On 07/11/22 a complaint was received and one of the allegations was that the facility was having financial issues. A request was made to the department’s audit unit to review all four facilities and their financial issues. A solvency audit was conducted during the months of July 2021 through August 2022. On 01/04/23 and 01/26/23, the audit unit reported the following: Objective 1) To determine if the licensee has an adequate financial plan in compliance with CCR, Title 22, Section 87213 FINANCES, that assures sufficient resources to meet operating expenses for care and supervision of residents. Finding 1) The licensee does not have an adequate financial plan to ensure residents’ care and supervision won’t be interrupted. Finding 2): Inadequate Liability Insurance coverage. Finding 3): Accountability of Licensee Governing Body Regulation – The late utility payments, nonsufficient funds & overdraft fees, inadequate general liability coverage noted indicates the licensee failed to exercise general supervision over the affairs of the licensed facilities. Objective 2) . To determine if the licensee is in good financial position and generates sufficient income to cover the operating expenses and meet short term obligations/liabilities. Finding 1): Overall, Roseleaf Oroville is not in a good financial standing due to negative incomes, falling behind on some large payments, and currently has negative equity. 1) The licensee will be cited for the following: a. CCR Title 22, Division 6, Section 87213 Finances; b. CCR Title 22, Division 6, Section 87205 Accountability; and c. Health and Safety Code, Section 1569.605 Liability Insurance. 2) Licensee shall be on financial monitoring for two (2) quarters or until it is evident a sound financial plan is in place and sustained Specifically, the licensee is to provide monthly utility bills and mortgage statements to the licensing agency to show the utility expenses are paid in-full by the noted due dates on the bills to avoid additional fees and disconnections of services; Licensee shall prepare and submit quarterly Profit and Loss Statement, with supporting documents; Specifically, revenue to be supported by the rent roll and bank statements showing funds have been deposited. Expenses to be supported by actual invoices and payments made; First quarter documents are to be submitted by the end of month following quarter end. 3) Licensee shall carry adequate general liability insurance required by law that each RCFE to be covered $1 million each occurrence and $3 million aggregate annually. A blanket coverage covering multiple facilities and businesses is not sufficient and not accepted. Per today's meeting the requested documents shall be sent to Rebecca Knight, Licensing Program Analyst by 04/17/23. The requested audits documents shall be sent to the Audits Unit by 07/25/23. Based on investigation observations and interviews which were conducted and record review(s), the preponderance of evidence standard has been met, therefore the above allegation(s) is found to be Substantiated . California Code of Regulations, (Title 22), is being cited on the attached LIC 9099D. Appeal Rights were explained and provided to the facility representative listed above and an exit interview was conducted. If any of the cited deficiencies are not corrected by the noted due date; civil penalties may be assessed.