Failure to Safeguard Resident Funds Due to Lack of Oversight and Policies
Penalty
Summary
The facility failed to administer its operations in a manner that ensured effective and efficient use of its resources, specifically regarding the management of resident funds. The former Administrator, who also served as the DON, was listed as a payee on a resident's bank accounts and had complete control over the resident's funds, including Social Security and Workers Compensation deposits. There were no logs or policies in place to monitor or track the use of resident funds, and no checks and balances existed for oversight. The Business Office Supervisor and Interim Administrator both confirmed the absence of policies and monitoring systems, and the Interim DON stated that the lack of policies prevented her from ensuring appropriate use of resident funds. An investigation by the Kentucky State Police determined that the former Administrator had misappropriated over $8,300 from a resident, with the case pending before a Grand Jury. The Interim Administrator and Interim DON reported concerns about the resident funds but were unable to verify them due to the lack of documentation. The former Administrator admitted to being overwhelmed, lacking support from the Governing Body, and not accurately tracking resident funds, which contributed to the misappropriation and failure to maintain the highest practicable well-being of the resident.