Follow-up on corrections·September 12, 2023

On September 12, 2023 at 1:15 p.m, San Bruno Regional Office conducted an office meeting with Licensee, Anthony and Sheila Diaz to discuss the findings from an audit that was completed by CCL Audit Section. Present in the meeting was Regional Manager, Vivien Helbling, Licensing Program Manager, Jackie Jin, Licensing Program Analyst, Murial Han and Auditor, Jacqueline Juarez joined virtually. The Department has requested an audit to be completed by the CCL Audit Section to ensure that the facility has sufficient funds to continue operations as the sister facility that was operated by the same owner was closed due to non-payment of rent. Based on the audit result, the licensee does not have a sound financial plan, has negative equity and is not generating enough income to meet its expenses. Licensee to ensure their corporate statues is reinstated and obligation with Franchise Tax Board (FTB) are paid. Licensee should work to reduce payroll cost, as payroll is absorbing all income earned. With paying savings, Licensee to increase food expenses and become current with all utilities. During today's meeting, the following findings and the violations were reviewed with the licensee: finding #1 Finances, the audit revealed that the Licensee is not making sufficient income to meet operating expenses; finding #2 Accountability of Licensing Governing Body, the audit revealed that the licensee did not pay operational expenses timely; finding #3, General Food Service Required, the audit revealed that the facility did not spend sufficient funds on food for 5 residents based on the USDA guidelines for male and female ages 51-70 and 71+; finding #4, Administrator Qualification, the audit revealed that the administrator did not ensure operating expenses were paid on time, and residents were supplied with sufficient food according to the USDA guidelines. Based on the audit findings and to ensure facility will be in compliance with Title 22 regulation, facility will comply with quarterly Financial Monitoring for a period of one year or until it is evident that the licensee has an adequate financial plan in place. The first due date being October 31, 2023 (July, August, and September 2023) documents are to include LIC 401, for the month of September 2023; bank statements for July- September 2023; utility bills, cable/phone bills and food receipts for the month of September 2023. Deficiency is cited for the above violations on LIC 809D. This report is reviewed and discussed with the licensee. A copy this report and appeal rights are provided.