Failure to Protect Residents from Misappropriation of Funds
Penalty
Summary
The facility failed to protect residents from misappropriation of their funds, as evidenced by discrepancies in resident trust fund accounts for three residents. During a quarterly audit, the Regional Financial Coordinator identified large, unusual cash withdrawals from resident accounts, which were not consistent with the residents' typical spending patterns. Some withdrawals lacked required witness signatures, and in several cases, staff who signed as witnesses did not observe any money being given to the residents. The Business Office Manager, who was responsible for these transactions, claimed to have obtained consent from resident representatives, but no receipts or documentation were found to support these claims. One resident with severe cognitive impairment and multiple diagnoses, including dementia and intellectual disability, had significant sums withdrawn from his account over several months. His room contained minimal personal belongings, and there was no evidence of new purchases. Another resident, who was cognitively intact, had multiple withdrawals from her account, but stated that she did not make purchases herself and her Power of Attorney had not authorized any spending. A third resident, also cognitively intact, had large withdrawals from her account, and the facility was unable to confirm with her guardian whether these were authorized. The investigation revealed that the Business Office Manager had also submitted forged medical documentation to obtain work accommodations and was terminated for violating facility rules. The police were notified, and evidence was collected, but receipts for the withdrawn funds were never produced. The facility's abuse policy affirms residents' rights to be free from misappropriation, but the lack of proper authorization, documentation, and oversight led to the wrongful use of resident funds.