Failure to Safeguard Resident Trust Fund Withdrawals From Misappropriation
Penalty
Summary
The deficiency involves the facility’s failure to safeguard resident trust fund withdrawals from misappropriation for two residents with trust fund accounts. Facility policy on Abuse, Neglect and Exploitation requires protections against misappropriation of resident property, but resident interviews and record review showed that large sums were withdrawn from resident trust funds without documentation verifying that goods or services were provided. One resident reported that $700 was taken from her trust fund, acknowledged signing a Resident Trust Fund Withdrawal form for personal use, and stated she did not receive any goods or services in return. The withdrawal form listed the receptionist as the fund custodian. For this same resident, the Activities Director stated that the Business Office Manager (BOM) instructed her that the resident needed to withdraw money for personal use. The Activities Director completed the withdrawal form, obtained the resident’s signature, and returned the form to the BOM, but did not take the resident shopping in that time period and was unaware of what the money was spent on. Audit records later showed that the $700 withdrawal had no receipt and that the check was made out to the facility, rather than being tied to documented purchases for the resident. A second resident confirmed that money had been taken from his trust fund, that he had signed withdrawal forms, and that he did not recall receiving any goods or services in return. Records showed two withdrawals for this resident, one for $1,115 and another for $1,700, both documented as cash advances, with the receptionist listed as fund custodian and various staff as witnesses. The receptionist reported that the BOM directed her to complete the forms and told her the withdrawals were to spend down the resident’s account, but she was unsure what the money was spent on. Facility and corporate audit records indicated that these withdrawals lacked receipts and that the checks were made out to the facility, demonstrating that resident funds were withdrawn without supporting documentation verifying appropriate use, contrary to facility policy.
We Help Long-Term Care Teams Stay Survey-Ready
We process and analyze inspection reports and plan of correction using AI to extract insights and trends so providers can improve care quality and stay ahead of compliance risks.