Failure to Timely Close Resident Trust Account and Unauthorized Transactions Post-Discharge
Penalty
Summary
The facility failed to close a resident's trust account within 30 days of discharge, as required by both facility policy and federal regulations. After discharge, the resident, who was cognitively intact and managed his own financial affairs, continued to have income deposited into and funds withdrawn from his trust account by the facility without his knowledge or authorization. The facility was not the representative payee for the resident, and there was no documentation authorizing these post-discharge transactions. Bank statements and trust transaction histories confirmed that deposits and withdrawals occurred for several months after the resident's discharge. Additionally, the facility did not provide documentation that the trust account had been closed or that a refund of the remaining balance had been processed in a timely manner. The administrator acknowledged the ongoing balance in the account and the lack of proper authorization for the transactions. Facility policy required that trust accounts be closed within 24 hours of discharge and refunded within 30 days, with all disbursements properly authorized, but these procedures were not followed in this case.