Failure to Obtain Written Authorization for Management of Resident Funds
Penalty
Summary
The facility failed to obtain written authorization from three residents to act as fiduciary of their personal funds and to manage, safeguard, and account for those funds deposited with the facility. For each of the three residents reviewed, their social security benefits were direct deposited into their resident fund accounts, and significant amounts were automatically transferred to the facility for care costs. However, a review of the Resident Fund Management Service forms for each resident revealed that none had authorized the facility to either direct deposit their social security benefits or to automatically transfer payments for care costs. Specifically, the forms for all three residents were either unsigned or did not include authorization for the facility to manage these financial transactions. The records showed repeated automatic withdrawals for care costs without the required written consent from the residents or their guardians. These actions were identified through record review and interviews conducted on 7/7/25, and the lack of proper authorization was consistently documented across all three cases.