Insufficient Surety Bond Coverage for Residents’ Trust Funds
Penalty
Summary
The facility failed to assure the security of all personal funds of residents deposited with the facility by not maintaining a surety bond in an amount sufficient to cover the total balance of residents’ trust accounts. On review of documents, the surveyor was provided a surety bond from the facility’s insurance company in the amount of $20,000, effective from 12/08/24 to 12/08/25. The facility also provided a list labeled “Trust- Current Account Balance as of 8/27/25,” which identified forty-five residents with personal funds accounts managed by the facility and showed a current total balance of $28,733.79. In an interview, the Executive Director confirmed that the surety bond amount was $20,000, which was less than the total amount of residents’ funds held in trust, resulting in the deficiency. No additional resident-specific medical history or clinical conditions were described in the report, and the deficiency pertained solely to the financial protection of residents’ personal funds.
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