Kansas hospital undergoes audit after departure of CFO

The superintendent of Larned (Kan.) State Hospital, a psychiatric facility, sent an email to staff Monday saying CFO David Fender is no longer employed at the hospital. The next day, the Kansas Department for Aging and Disability Services launched a financial audit of the hospital, according to The Wichita Eagle.

Mr. Fender began serving as CFO of Larned State Hospital in August 2015. Before joining the hospital, he was CFO of the Government National Mortgage Association, which insures government-backed home mortgages.

During Mr. Fender's time as CFO of the GNMA, the Department of Housing and Urban Development's Office of Inspector General raised red flags about the federal loan backer's financial statements, according to The Wall Street Journal.

When asked about the reason for Mr. Fender's departure from Larned State Hospital, Angela de Rocha, spokeswoman for the Kansas Department for Aging and Disability Services, told The Wichita Eagle she could not comment on the issue. She said her agency has no reason to believe the hospital's financial statements are incorrect, according to the report.

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