Failure to Safeguard Resident Funds Due to Lack of Oversight and Documentation
Penalty
Summary
The facility administration failed to utilize its resources effectively and provide necessary oversight to prevent the misappropriation of residents' personal funds. The Business Office Manager (BOM) was responsible for maintaining accurate financial records and ensuring compliance with state and federal regulations. However, an investigation revealed that the BOM could not account for $905.00 missing from the Resident Fund Management Service (RFMS) petty cash account, and was unable to provide receipts or explanations for the missing funds. The facility's own policies required withdrawal receipts with resident or representative signatures for all transactions, but these procedures were not followed. A review of records for six residents whose funds were managed by the facility showed multiple unauthorized withdrawals and missing receipts for significant amounts of money, including withdrawals made after residents were discharged or deceased. Interviews with residents indicated that they were not aware of the details of their financial statements, did not receive explanations about their accounts, and in some cases, were charged for items they did not use or receive. Some residents expressed distress and anger over missing funds and lack of transparency regarding their finances. Despite being made aware of missing receipts and discrepancies, facility leadership did not conduct a thorough investigation into all transactions during the former BOM's tenure. Quarterly statements were distributed to residents without instructions to review them for accuracy, and there was no oversight or audit of the BOM's activities during the relevant period. The lack of proper documentation, oversight, and adherence to policy resulted in the misappropriation of resident funds and failure to safeguard residents' property.