Beaver County continued to collect “substantial funds” on behalf of Friendship Ridge long after its sale to Comprehensive Healthcare Management was completed, according to an independent audit conducted of the transaction.
“It is a fact that Beaver County has collected substantial funds since the Operations Closing Date into the Friendship Ridge Account maintained at Citizens Bank,” wrote auditor James Fellin in his report. “Most of the post-Operations Closing collections have been remitted to [Comprehensive Healthcare Management] by Beaver County on a periodic basis […] We determined that the Friendship Ridge bank account that Beaver County had maintained at Citizen Bank ceased being utilized by Beaver County for any other purpose other than winding down Beaver County’s involvement in Friendship Ridge. As such, it would appear that all deposits and withdrawals into this account after March 1, 2014, related to Friendship Ridge during the period it was owned by [Comprehensive Healthcare Management] and appeared to be amounts that were due to [Comprehensive Healthcare Management].”
County officials tell the Beaver Countian that funds collected by the county following the sale of Friendship Ridge comprised those later unilaterally withdrawn by Treasurer Connie Javens and paid to Comprehensive Healthcare Management in the form of cashier’s checks. Beaver County District Attorney David Lozier has previously said those unilateral withdrawals were made by Javens in violation of the Pennsylvania County Code, which requires all payments to first be approved by the Board of Commissioners and County Controller.
Auditors determined that $9,808,430 in accounts receivables (such as payments from Medicare and Medicaid) deposited into the Citizens Bank account belonged to Comprehensive Healthcare Management in accordance with the terms of the sales agreement, which dictated all receivables deposited before the March 1, 2014 closing date were to belong to Beaver County and all receivables deposited after were to belong to Comprehensive.
But the report also noted 21 deposits into the Citizens Bank account after the closing date which should have been deposited beforehand — including checks dated as far back as October 2013, “since [Comprehensive Healthcare Management] co-managed the facility during this period, it should have been incumbent upon them to ensure that all funds on hand as of the [closing date] were properly deposited into the Friendship Ridge bank account.”
Auditors determined these transactions, totaling $143,696, belonged to Beaver County. The audit ultimately determined that Comprehensive still owes $1.3 million to the county from the sale of Friendship Ridge.
Beaver County Controller David Rossi previously told the Beaver Countian he would not have authorized the release of any funds from the Citizens Bank account until a full review of the sale of Friendship Ridge had been completed, saying, “no money should have gone anywhere until we figured out what is owed.”