need help with possible financial wrong doing

I take care of an elderly lady and am her POA. Her trust company is paying for her home health care for 24 hr. care @$15.oo/hr. They also give her a monthly amount in to her personal account which I use for her home and personal maint. Her care giving is a separate account. all regular wages and major taxes are taken from this account. Due to illness and turnover, there has been occaisional overtime incurred for the employees. My former book-keeper would write the overtime wages out of her personal account with taxes withheld. Since her termination she is saying that she will turn me in for wrong doing if I give her any problems. Did I do anything wrong? I know that I am ultimately responsible as I only have signing rights on the personal account but she had said that was the way to do things. She made out all the payroll checks and had signing rights on that separate account that the trust fund contributes to. what are my options?

Does your elderly client know that she is paying OT and that it is coming out of a specific accout? I would assume that someone autorized the OT. If anyone had a problem with it, it would be your elderly client. The bookeeper would not be able to sue you for money owned by someone else.

I guess my concern is with the trust company. I am her Power of Attourney for medical and business concerns. I promised her she would never have to go to a rest home. I dont think the trust company will say anything, or the IRS since all taxes were paid. The lady is mostly bedfast and cannot conduct her own business. she is aware of what's going on to a large extent. The overtime occured because we lost our full time help and the remaining help had to pull more than 40 hours/week to cover the 24 hour care. Not sure if the book keeper was doing everything kosher according to the law. She was experienced and after she was terminated she said we told her to do it.