To reduce operating costs, payroll costs and other shared expenses are initially processed and paid through Redbanks Towers and Apartments. The other two affiliated properties managed by Henderson County Health Care Corporation, II reimburse Redbanks Towers and Apartments for their proportionate share of the costs. The $54,930 are not loans to the other affiliated properties. The amount can be attributed to timing differences and billing the affiliated properties after an expense is paid. Due to employee issues and turnover, some of the reimbursements were not made in a timely manner. Management has taken proactive steps to ensure timely reimbursement in the future, including but not limited to, outsourcing accounts payable, changes in staffing, monitoring the intercompany reimbursements, etc. As of October 4, 2022, $43,404.81 of the amount has been reimbursed to Redbanks Towers and Apartments. The balance of $11,525.42 will be reimbursed as soon as possible.