Resident Trust Account Balances Exceeded Surety Bond Coverage
Penalty
Summary
The facility failed to ensure that the total amount of resident funds held in the facility trust account did not exceed the coverage provided by the facility's surety bond. Record review showed that the trust account balances at several points in time were significantly higher than the $25,000 surety bond, with balances reaching over $40,000. The Director of Nursing identified 11 residents with funds in the trust account. During interviews, the administrator acknowledged that the surety bond was intended to protect resident funds but stated that the facility relied on the bank's FDIC insurance for additional protection, considering the surety bond as redundant. The administrator also noted that an increase in the number of residents likely contributed to the higher account balances, and admitted that the facility should have monitored the account amounts more closely.