Failure to Maintain Adequate Surety Bond Coverage for Resident Trust Accounts
Penalty
Summary
The facility failed to ensure that all resident personal funds deposited with the facility were adequately protected by a surety bond. Review of the Resident Trust Account (RTA) balances over a six-month period revealed that the account balance consistently exceeded the $80,000 surety bond coverage, with monthly balances ranging from $50,280.00 to $122,434.28. Despite these high balances, the surety bond remained at $80,000, leaving a significant portion of resident funds uninsured during this period. Interviews with facility staff indicated a lack of clear responsibility for monitoring the RTA balances and ensuring they did not surpass the bond limit. The Business Office Manager stated she was not responsible for reviewing monthly statements or monitoring the balances, while the Regional Director of Accounts Receivable noted that the previous director, who had recently left, would have been responsible for this task. The Facility Administrator was also unaware of who was responsible for monitoring the RTA and was not aware that the account frequently exceeded the bond coverage.