Failure to Timely Pay Utility Bills Resulting in Risk to Essential Services
Penalty
Summary
The facility failed to manage its financial resources effectively, resulting in multiple unpaid utility bills for essential services such as water, gas, and electricity. Invoices and disconnect notices from vendors revealed that the facility had accumulated significant past due balances, with some disconnection dates already passed. The Administrator (ADM) reported that her role was limited to forwarding bills to Accounts Payable and the CEO, and she was not involved in payment decisions or aware of which bills were ultimately paid. The CEO confirmed that payments were only made when he instructed the accounts management company, and he was unable to provide payment receipts at the time of the survey. Interviews with utility vendors confirmed repeated attempts to collect payment, including calls and emails to the CEO, with some vendors delaying disconnection out of consideration for the residents. Observations during the survey confirmed that the facility continued to have water, electricity, and gas services at the time. Review of the facility's governing board policy indicated that the board is responsible for ensuring the provision of a safe physical environment and oversight of facility care and services. However, the failure to pay utility bills in a timely manner, as evidenced by the documentation and interviews, demonstrated a lack of effective administration and resource management, which could impact the facility's ability to maintain essential services for residents.