Failure to Safeguard Resident Funds and Prevent Misappropriation
Penalty
Summary
The facility failed to protect two residents from misappropriation and exploitation of their personal funds. Both residents, who had severe cognitive impairments and designated resident representatives, received spending account cards from their insurance providers. These cards were intended for the residents' use on over-the-counter medications and groceries, with monthly deposits accumulating if unused. The Business Office Manager (BOM) did not obtain permission from the residents' representatives before allowing the Activities Director (AD) to use the residents' cards. The AD subsequently used the cards on multiple occasions to purchase snacks and groceries not only for the cardholders but also for other residents, and in one instance, for personal use. The residents' representatives were not informed or consulted prior to these transactions, and the cards were not given to the representatives as required. The investigation revealed that the AD used one resident's card for unauthorized purchases totaling $318.64 and the other resident's card for $313.72. The receipts showed multiple transactions, including one where a 12-pack of energy drinks was purchased for the AD's personal use. The BOM admitted to not knowing that permission from the residents' representatives was required and that the cards could not be used for other residents. The cards were kept in the BOM's office safe and later in the AD's office, without proper tracking or oversight. The lack of a facility protocol for managing residents' spending account cards contributed to the unauthorized use and lack of accountability. Both residents were severely cognitively impaired and unable to provide consent or manage their own funds. Their representatives only became aware of the misuse after noticing the absence of the cards and questioning facility staff. The facility's policies on resident rights and prevention of abuse and exploitation were not followed, as staff failed to protect the residents' property and did not promptly report or prevent the misappropriation. The incident was only investigated after a representative inquired about the missing card, revealing systemic failures in safeguarding resident funds.