Failure to Safeguard and Manage Resident Personal Funds
Penalty
Summary
The facility failed in its fiduciary responsibility to properly hold, safeguard, manage, and account for the personal funds of 13 residents whose trust fund balances significantly exceeded the allowable limit of $2,900. Policy review confirmed that the facility was required to manage resident funds in accordance with local, state, and federal regulations. However, quarterly statements for multiple residents revealed balances ranging from $266.38 to $10,267.48 over the permitted threshold. These overages were identified through a review of financial documents and medical records for residents with various diagnoses, including diabetes, dementia, heart failure, and other chronic conditions. Interviews with facility staff indicated that the Regional Business Office Consultant (RBOC) only became aware of the excessive balances after assuming responsibilities from the previous Business Office Manager. The RBOC acknowledged that action to address the overages was not initiated until the week of the interview, despite the ongoing accumulation of funds beyond regulatory limits. This lapse demonstrates a failure to monitor and manage resident trust accounts in accordance with established policy and regulatory requirements.