Failure to Properly Account for and Disburse Deceased Resident’s Trust Funds
Penalty
Summary
The facility failed to ensure that third party liability (TPL) requirements and its own admission agreement regarding resident funds were followed for a deceased resident with a trust fund balance. The admission agreement stated that residents have the right to manage their personal financial affairs or designate someone to do so, and that the facility would provide an accounting of funds upon request and at least quarterly. Record review showed that the resident had a trust fund balance of $4,708.23 at the time of death. Subsequent account activity included a large debit of $4,698.95 for personal needs, closing interest of $1.36, and a final debit of $10.64 to close the account. The Business Office Manager (BOM) reported that, upon the resident’s death, the family requested funds for funeral expenses and that a check in the amount of $4,698.95 was issued to a family member after receipts were provided. Review of the resident’s trust records and receipts showed that the expenditures submitted by the family included a repast at a banquet center, a Fossil watch from a department store, clothing items (jacket, blouse, pants) from a high-end retailer, a full slip and another unidentified item from another store, and obituary costs from a funeral home. The BOM stated that the regional manager had indicated it was acceptable to give the resident’s money to the family as long as receipts were provided, and that anything left over should be sent to TPL. The BOM acknowledged not consulting with the corporate BOM before issuing the check and confirmed that the check was printed and given at the facility level without corporate involvement. The Administrator stated that he would have expected the BOM to send any remaining resident funds to TPL or back to the state if not used for funeral expenses, indicating that the facility did not follow required procedures for final accounting and disposition of the resident’s funds within 30 days of death.
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