Insufficient Surety Bond Coverage for Resident Funds
Penalty
Summary
The facility failed to ensure that the surety bond had sufficient funds to cover the residents' personal funds for three consecutive months: November 2024, December 2024, and January 2025. A review of the facility's bank statements showed that the residents' personal funds were $409,305.82 in November 2024, $406,090.88 in December 2024, and $405,479.42 in January 2025. However, the facility's surety bond only covered $300,000, which was insufficient to secure the total amount of residents' personal funds during these months. This deficiency was confirmed during an interview with the Regional Business Office Manager on February 6, 2025, who acknowledged that the facility did not ensure the surety bond covered the resident trust fund for the specified months.
Plan Of Correction
No residents were negatively affected by surety bond not having sufficient coverage. A surety bond in the amount of $450,000 will be obtained for the resident trust account at the facility by March 4, 2025. This surety bond will cover the resident trust account at the facility along with all of the individual accounts that each resident has. The Business Office staff will be re-educated on the need for surety bonds to cover the resident trust accounts along with all of the individual accounts that each resident has. An audit will be performed on a semi-annual basis beginning on or before March 4, 2025 by the nursing home administrator/designee, to ensure that the surety bond on the resident trust account is current and adequately covered by the surety bonds.