VIRGINIA DEPARTMENT OF SOCIAL SERVICES

Indian River Assisted Living
1012 Justis Street
Chesapeake, VA 23325
(757) 523-4659

Current Inspector: Margaret T Pittman (757) 641-0984

Inspection Date: Oct. 10, 2019 and Dec. 27, 2019

Complaint Related: No

Areas Reviewed:

22VAC40-73 ADMINISTRATION AND ADMINISTRATIVE SERVICES

Comments:

Licensing Representatives conducted an unannounced monitoring inspection in response to a self-reported incident that two staff were involved in misappropriating and stealing resident funds. The inspections were conducted on October 10, 2019 from 9:27 a.m. to 3:28 p.m. and on December 27, 2019 from 1:58 p.m. to 2:11 p.m. There were 95 residents in care on October 10, 2019, and 101 residents in care on December 27, 2019. Topics discussed were the following: Maintaining detailed resident financial records and regulatory agency involvement. Please submit your ?plan of correction? and ?date to be corrected? for each violation cited on the violation notice and return it within 10 calendar days. The plan of correction must indicate how the violation will be or has been corrected. The plan of correction must include: 1. Step(s) to correct the noncompliance with the standard(s) 2. Measures to prevent reoccurrence 3. Person(s) responsible for implementing each step and/or monitoring any preventative measures. If you have any questions, please contact your inspector Alexandra Poulter at 757-613-5133 or alexandra.poulter@dss.virginia.gov.

Violations:

Standard #:	22VAC40-73-80
Description:	Based on record review and interview, the facility failed to ensure all resident funds were held separately from any other moneys of the facility and no resident funds were borrowed or used for purposes of personal interest by the administrator or facility staff. The facility failed to maintain a written accounting of money received and disbursed by the facility that shows a current balance. Evidence: 1. On 09-24-19, the regional licensing office was notified via telephone of suspected financial abuse by staff #1 and staff #2 of residents. An incident report was subsequently received on 09-25-19 that documented the following, ?We have uncovered evidence that previous administrator [staff #1?s name] has misappropriated resident and company funds. We also believe she may have exploited residents.? 2. On 10-04-19, the regional licensing office received the ?Investigative Summary? from staff #3 regarding the incident that occurred, which documented the following on the ?reported professional? staff #1, ?After receiving [staff #1?s name] verbal resignation she was asked to leave the premises. [staff #1?s name] then started to take multiple company and financial records out of her and [staff #2?s name]?s office. I asked to inspect the belongings that she was collecting?. I found various personnel records, our license to operate the community, resident checkbooks, resident financial records, and various other documents that were the property of Indian River... In the presence of the police I searched several bags that [staff #1?s name] requested from the van prior to her departure. In the bag, [staff #1?s name] claimed was her purse, I found debit cards of [resident #1?s name] and [resident #2?s name] these cards were wrapped in several ATM withdrawal receipts. Additionally, I found a box that she was attempting to take with her and inside were envelopes labeled with resident names, later I was informed by staff [staff #4?s name] these were the monthly resident monies.? 3. Additionally, an ?Investigative Summary? from staff #3 on the ?reported professional? staff #2 documented, ?Subsequently, after [staff #1?s name] departure we found multiple documents in the offices and in the company van where it appears that [staff #2?s name] and [staff #1?s name] may have been involved in misappropriating both community funds and resident funds. Including receipts where funds were received for a resident?s room and board, but were never given to the business office for deposit. ? 4. On 10-10-19 during record review, resident written accounting of money could not be produced for resident #3, resident #4, and resident #5. 5. Review of the ?Investigative Summary? regarding former staff #1 submitted by staff #3 to the regional licensing office on 10-04-19 documented $2,000 cash was missing for resident #3. Further review of the ?Investigative Summary? regarding former staff #2 documented, ?We have reason to believe [former staff #2?s name] was personally involved in cashing checks made out to a resident, [resident #4?s name], based on our conversations with local detectives and not giving those funds to the intended recipient.? 6. Staff #3 confirmed the residents? funds were borrowed or used for purposes of personal interest by former staff #1 and staff #2, and that former staff #1 and staff #2 had taken records and did not document resident funds accordingly.
Plan of Correction:	Upon discovery all authorities were immediately notified including Adult Protective Services, Inspection Agency, Long-Term Care Licensing Board, and Nurse Licensing Board. All access to resident funds kept in care of the community by the involved parties were revoked. Community conducted along with previous operator a thorough audit of records and accounts and residents were credited with any funds that had been discovered as missing, stolen or unaccounted for. Community implemented a new accounting system which requires resident signatures on ledger sheets that are kept on file to more closely monitor accounts. The Administrator or her designee will routinely monitor resident accounts to make sure that ledgers are up to date and reflect accurate account balances.