For the Express
JOHNSTOWN — Fulton County officials revealed a $3.1 million discrepancy in the books of the Residential Health Care Facility Wednesday, just a day after the facility’s lead department head requested a $4.7 million contribution to balance its budget.
Fulton County Treasurer Edgar “Terry” Blodgett reported he has the facility’s fund balance budgeted at $3.1 million, but facility Director Jennifer Gilston told the board of supervisors’ Health Services Committee Tuesday the fund balance was docked at zero.
“We get our numbers right from them,” said Blodgett.
“I don’t understand the issue. This is totally unacceptable,” said county Administrative Officer Jon Stead.
Board Chairman and Perth Supervisor Gregory Fagan said in order for the department to use the facility’s fund balance, the board of supervisors has to approve that use.
“I don’t ever remember getting any kind of request like that,” he said.
The board is currently waiting for the facility’s internal audit report, and despite requests to have the information submitted sooner than August, is still waiting for final documentation.
Not knowing the true financial state of the facility puts the supervisors in a predicament, as federal mandates are requiring all nursing homes throughout the nation to install sprinkler systems by Aug. 13, 2013. Fulton County’s will cost more than $500,000.
If the facility is truly in the hole by $4.7 million, the supervisors have to decide whether or not to put the $500,000 project on the levy, too, or seek a bond to pay for it.
Though the county is considering the sale of the facility, putting the project off until 2012 appears out of the question. County Planning Director James Mraz said the on-site construction will take roughly six months, preceded by a one-year contract process. That timeline does not include state Department of Health inspections, Mraz noted.
“You’re not going to get someone to purchase the facility if its not in compliance,” said Stead.
Blodgett, former district manager of HSBC Beneficial, said using a bond for the project is unfavorable because in the financial realm, $500,000 is considered a small amount to loan.
“No one wants it,” he said.
Blodgett said he would meet with Gilston next week to “find out where the fund balance is.”
Stead and Budget Director Alice Kuntzsch had hoped Wednesday would have marked the county’s last Capital Projects Committee meeting, but because of the uncertainty, had to schedule another for Sept. 22.
“I don’t think we can close this up without [a decision]. The decision could turn 180 degrees when we find out what’s going on,” he said.