Insufficient Surety Bond Coverage for Resident Trust Funds
Penalty
Summary
The facility failed to purchase a surety bond in an amount equal to the current balance of personal funds held in the resident trust fund. At the time of the survey, documentation showed that 82 residents had personal funds managed by the facility, with a total balance of $63,240.36. However, the facility's surety bond was only for $45,000.00, which was significantly less than the current trust fund balance. The Business Office Manager confirmed the discrepancy and was unable to provide a clear explanation for why the bond amount did not match the current balance. Additionally, the facility did not have a policy regarding the surety bond. Interviews with the Business Office Manager revealed uncertainty regarding the timing of processing patient pay amounts, which contributed to fluctuations in the trust fund balance. The manager also acknowledged that at least one deceased resident was still listed as having funds in the trust account. Despite being informed of the concern, the facility did not provide documentation or a policy to address the issue of the insufficient surety bond coverage.