Unauthorized Transfer of Resident Funds to Managed Account
Penalty
Summary
The facility violated a resident's right to manage her own financial affairs by arranging for her pension checks to be deposited into a resident fund management service account without her written authorization. The facility's Resident Trust Account Policy, dated 1/1/2023, required that no account be opened until a Delegation of Responsibility for the Management of Personal Funds was signed by the resident or their representative. The resident, who had diagnoses including diabetes, peripheral vascular disease, osteoporosis, hypertension, delusional disorder, and cognitive/communication deficits, had an MDS dated 10/9/25 indicating no memory, recall, thinking, reasoning, mood, or behavior problems. On 12/6/23, a Business Office Activity Note documented that the Business Office Manager (BOM) and Social Service Assistant (SSA) approached the resident and asked her to have her funds transferred into a resident fund management service bank account, and the resident declined, stating she wanted to continue managing her own bank account. Despite this refusal, an Authorization Agreement to Handle Resident Funds showed that on 6/5/25 the BOM signed the authorization to have the resident's funds transferred into the resident fund management service account, without the resident's signature. In an interview on 10/17/25, the resident stated she understood the facility believed she was not competent but asserted that she was competent, wanted to manage her own bank account, had not agreed to the facility managing her funds, and was very angry and upset over no longer having control of her money.
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