Misappropriation of Resident Trust Funds by Staff Member
Penalty
Summary
The facility failed to protect the belongings and funds of thirteen residents, resulting in misappropriation of resident trust funds by a former Business Office Manager (FBOM). The FBOM was found to have taken monies from the resident trust for personal gain, with discrepancies identified in the accounts of multiple residents. The incident was discovered after suspicions arose regarding unauthorized use of the facility credit card, prompting an internal investigation and audit of the resident trust fund, facility credit card, and petty cash accounts. The audit revealed that the FBOM had manipulated transactions to appear legitimate, making the misappropriation difficult to detect. Interviews with facility leadership confirmed that the FBOM had a clean background check and no prior indications of misconduct. The FBOM was able to conceal the movement of funds and falsify documentation, which allowed the misappropriation to go unnoticed during routine oversight. Despite the discrepancies, residents did not report issues with accessing their funds when requested, and no negative outcomes were voiced by residents during interviews conducted as part of the survey process. A review of facility policies indicated that procedures were in place to safeguard resident funds, including requirements for documentation, witness signatures for disbursements, and monthly transaction reviews. However, these controls were insufficient to prevent the FBOM from accessing and misappropriating resident funds. The deficiency was identified through the facility's own investigation and subsequent audit, which flagged irregularities in the trust accounts of thirteen residents.