Failure to Implement Policies Preventing Misappropriation of Resident Funds
Penalty
Summary
The facility's governing body failed to provide effective oversight to ensure the implementation of policies and procedures to prevent the misappropriation of resident funds. Review of facility documents revealed that, although the facility's policy stated it must safeguard and account for resident personal funds upon written authorization, there were no written policies or procedures in place regarding staff members serving as payees for residents. This lack of guidance resulted in staff, including administrators, managing resident funds based on past practices rather than established protocols. Interviews with the interim administrator, HR manager, and director of risk and compliance confirmed the absence of written guidelines or training for staff acting as payees, and that monthly audits for resident personal funds were not governed by a formal policy. Further investigation revealed that a previous administrator was listed as a payee on a resident's bank accounts for Social Security and Workers Compensation benefits. According to the Kentucky State Police, this administrator misappropriated over $8,300 from the resident, and the case was pending with the Grand Jury. The former administrator stated there was a lack of leadership and communication from the administrative team, and she did not receive the necessary guidance to perform her duties effectively. The interim administrator and interim DON acknowledged assuming payee responsibilities for the resident without any written policies or procedures to guide their roles.