Failure of Governing Body to Ensure Financial Oversight and Policy Implementation
Penalty
Summary
The facility failed to ensure an effective governing body that was legally responsible for establishing and implementing policies regarding the management and operation of the facility, including compliance with all financial obligations for the delivery of care. Record review and interviews revealed that the facility had a history of financial solvency concerns, with a previous complaint survey identifying issues under neglect and substandard quality of care. Multiple service providers, including the former medical director, registered dietitian, landscaping company, and a pastor providing spiritual care, reported nonpayment for their services over extended periods. Additionally, the Ombudsman received complaints from residents about being denied access to their funds. Interviews with the facility administrator and board members indicated a lack of awareness and oversight regarding financial obligations and board activities. The administrator was unaware of outstanding balances owed to service providers and was unsure about the frequency of board meetings. Board members themselves were either unaware of their current roles or the financial issues facing the facility, and could not provide documentation of board meetings. Facility policy stated that the governing body was responsible for oversight, budget approval, and financial stewardship, but these responsibilities were not being fulfilled, resulting in noncompliance affecting all residents.