Failure to Ensure Adequate Surety Bond for Resident Trust Funds
Summary
The facility failed to ensure a surety bond was in place to cover the total amount of personal funds in the resident trust account for five residents who utilized the trust fund. The facility had a census of 58 residents. A document titled 'Residents who use the trust' revealed that five residents utilized the trust fund. The surety bond provided by the facility was dated 6/23/23 and had an amount of $40,000. However, on 5/02/24, the facility's Administrator confirmed that the total amount of resident funds exceeded the facility's surety bond. The facility's policy on the protection of resident funds required a surety bond on the cumulative total of all resident trust fund balances, which was not met in this case.
Penalty
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The facility did not secure a surety bond sufficient to cover all resident funds, managing $158,125 with a bond of only $50,000. Interviews with the Administrator and DON confirmed the lack of evidence for an adequate bond increase.
The facility did not provide a sufficient surety bond to cover all resident personal funds, affecting 20 residents. A review showed a total of $35,221.26 in resident accounts, with one resident holding $32,805. The surety bond was only $25,000, insufficient to cover the total funds. The DO acknowledged the issue and requested a resident's guardian to manage funds externally. Facility policy required a surety bond to secure all resident funds.
The facility failed to maintain a surety bond sufficient to cover all resident personal funds, affecting 20 residents. The total amount in resident fund accounts exceeded the bond amount, which was initially set at $20,000 and later adjusted to $120,000. Facility policy required the bond to match the total resident funds.
Inadequate Surety Bond Coverage for Resident Funds
Penalty
Summary
The facility failed to secure a surety bond that adequately covered all resident funds managed by the facility. A review of the financial records for 42 residents revealed that the total amount of funds managed by the facility was $158,125. However, the surety bond, dated 05/31/24, was only increased from $40,000 to $50,000, which was insufficient to cover the total amount of resident funds. Interviews with the Administrator and the Director of Nursing confirmed that there was no evidence of further increases to the surety bond to meet the required coverage for the resident funds.
Inadequate Surety Bond for Resident Funds
Penalty
Summary
The facility failed to provide a surety bond large enough to cover the total amount of money in all resident personal funds accounts, affecting 20 residents. A review of the resident fund accounts as of October 31, 2024, revealed a total amount of $35,221.26, with one resident having a significant amount of $32,805 in their account. However, the surety bond, effective from July 10, 2024, was only for $25,000, which was insufficient to cover the total funds. During an interview, the Director of Operations acknowledged the inadequacy of the surety bond and mentioned that a resident's guardian was asked to wire money into a guardianship account. The facility's policy stated that a surety bond should be purchased to secure all personal funds of residents deposited with the facility.
Inadequate Surety Bond for Resident Funds
Penalty
Summary
The facility failed to maintain a surety bond large enough to cover the total amount of money in all resident personal funds accounts, which had the potential to affect 20 residents. A review of the resident fund accounts on a specific date revealed a total amount of $98,931.82, while one resident had deposited $101,801.07 earlier in the year and had $91,442.68 in their account on the same date. An email from the Business Office Manager indicated that the active surety bond did not cover the amount in resident fund accounts. The surety bond, effective from a certain date, was initially for $20,000, but was later changed to $120,000 and backdated. The facility's policy required the bond to be at least equal to the total amount of residents' funds as of the most recent quarter.
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