Failure to Accurately Reconcile Resident Trust Fund Accounts
Penalty
Summary
The facility failed to maintain an accurate and properly reconciled accounting system for resident trust fund accounts, as required by their own policy and proper accounting principles. Review of facility records showed that monthly reconciliations of the resident trust fund were either not completed or, when attempted, did not match the residents' current balances. Bank statements and reconciliation forms from several months revealed discrepancies, including unexplained differences between the reported cash on hand and the actual cash counted in the safe. For example, the bank reconciliation reports showed significantly higher cash on hand amounts than what was physically present. Interviews with the Business Office Manager (BOM), Activity Director (AD), and Corporate Business Office Manager (CBOM) confirmed inconsistent practices in tracking and reconciling petty cash, which is drawn from the resident trust fund. The BOM and AD described daily and monthly cash counts and receipt tracking, but were unable to explain the discrepancies between the physical cash and the amounts reported on reconciliation forms. The administrator and CBOM both stated expectations that the petty cash and trust fund accounts be accurately reconciled each month, but this was not occurring in practice.