Failure to Provide Surety Bond for Resident Trust Funds
Summary
The facility failed to consistently provide a surety bond to protect the account balance of the resident trust fund, affecting all 26 residents with trust accounts. During interviews, the revenue cycle manager and business office manager, who were responsible for managing the resident trust fund account, were either unaware of the surety bond or unsure of its details. A surety bond from Merchants Bonding Company, effective from 1/1/25 to 1/1/26, was eventually provided, but there was no evidence of a surety bond effective prior to 1/1/25. The facility's policy on trust funds, dated 5/10/24, did not address the requirement for surety bonds.
Penalty
Resources
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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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