Inadequate Surety Bond Coverage for Resident Trust Funds
Summary
The facility failed to maintain a Surety Bond in an adequate amount to cover the resident trust fund account balance for six consecutive months. The Surety Bond was set at $85,207.06, while the resident trust fund account balances exceeded this amount each month from August 2024 to January 2025, with balances ranging from $107,015.20 to $144,539.69. This discrepancy was identified through staff interviews, record reviews, and a review of the facility's policy on Patient/Resident Trust Funds. The Administrator confirmed that the Surety Bond amount was insufficient compared to the resident trust fund balances and acknowledged being unaware of this issue. The facility's policy required all resident trust fund money, except for petty cash, to be maintained in an interest-bearing checking account. The deficiency had the potential to adversely affect the finances of 84 residents with trust fund accounts managed by the facility.
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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