Failure to Properly Credit Interest on Resident Trust Funds
Penalty
Summary
The facility failed to properly manage resident trust fund interest payments for two residents who had authorized the facility to handle their personal funds. Both residents had signed authorizations, either by themselves or through their Power of Attorney, allowing the facility to hold and disburse their funds. A review of the facility's policy indicated that resident trust accounts should be maintained in interest-bearing accounts, with interest credited accordingly. However, the resident ledgers for both individuals showed only a single, undated interest payment for June balances, with no interest credited for the following months. The facility's pooled trust account bank statement confirmed that interest was paid monthly, but this was not reflected in the residents' individual ledgers for July and August. Interviews with the DON and ADON revealed that neither had any involvement or access to the resident fund ledgers or bank accounts. The Administrator, who also served as the Business Office Manager, admitted to not knowing the actual interest rate on the resident trust fund account and stated she used a calculation method provided by her accountant, rather than following federal regulations or the facility's own policy. This lack of proper oversight and failure to credit interest as required resulted in the deficiency.