Kansas launches financial audit of hospital after departure of CFO

The state has begun an audit of the finances of Larned State Hospital a day after the departure of its chief financial officer was announced.

The hospital’s superintendent sent an e-mail to staff Monday saying that David Fender, who was hired as chief financial officer last year, "is no longer employed by Larned State Hospital. We wish David the best in his future endeavors."

An attempt to reach Fender by phone Tuesday evening was unsuccessful.

William Rein, the hospital’s superintendent and special counsel, did not return a phone call Tuesday.

The hospital’s previous superintendent, Thomas Kinlen, sent an e-mail announcing Fender’s hiring in August 2015. The e-mail said Fender worked for 30 years in Asia managing subsidiaries of Nestle, Chanel and other major companies. It also said he played a role in helping Japan contain radioactive material after a tsunami caused a meltdown at a nuclear facility in Fukushima in 2011.

"Most recently he was appointed by the Obama Administration as the chief financial officer of Ginnie Mae (Government National Mortgage Association) and managed the finance, accounting and information technology operations," the e-mail stated.

Ginnie Mae, a federally owned corporation, insures government-backed home mortgages.

Fender’s time at Ginnie Mae was the subject of a series of articles by the conservative website The Daily Caller last month. The Daily Caller quoted an inspector general’s report as saying that Fender "used his public office for private gain, falsely reported his income … and provided false information on the resume" before leaving the agency in April 2015.

Fender worked for Larned State Hospital from August 2015 until Aug. 12, according to Angela de Rocha, spokeswoman for the Kansas Department for Aging and Disability Services, which oversees state hospitals providing mental health services,.

The Daily Caller article makes no mention of Fender moving to Kansas or working for the hospital.

Asked the reason for Fender’s departure, de Rocha said in an e-mail Monday night that she could not comment on personnel matters.

She sent a follow-up e-mail Tuesday that said, "FYI, we have no reason to believe anything is amiss, but our internal auditing unit is auditing Larned State Hospital’s financial information."

Management of the state’s hospitals has come under scrutiny during the past year. Osawatomie State Hospital lost its federal Medicare certification　in December after federal auditors raised concerns about safety at the facility.

Kansas lawmakers have also questioned conditions at Larned. Both hospitals have struggled with staffing, which has forced nurses to work long hours and raised concerns about gaps in safety.

This story was originally published August 16, 2016 at 11:51 AM with the headline "Kansas launches financial audit of hospital after departure of CFO."