GOUVERNEUR — Village police are investigating whether the former activities director at Kinney Nursing Home misused funds intended for the personal spending of residents.

Peggy McGill, Harrisville, was fired July 9 by the nursing home after it compared invoices she submitted for reimbursement with actual purchases for residents of clothing or personal services, such as hair appointments. She began working at the nursing home in 2005.

"There's every indication we've had a breach in our system," Chief Executive Officer Charles P. Conole said. "It's in the thousands of dollars, but I'm going to let the police come up with the final figure."

The nursing home turned over its paperwork to Police Chief David C. Whitton, who was unavailable for comment.

Mrs. McGill's telephone was disconnected.

A little more than two weeks ago, the nursing home's business office alerted administrators that Mrs. McGill was requesting reimbursement for items that didn't seem to jibe with what residents would have bought. Medicaid provides residents with $50 each per month for personal spending, such as going out to dinner.

Some of the invoices were for bathing suits, large dungarees and sneakers for a slight man, and hair appointments for bedridden patients.

"We found huge discrepancies," Mr. Conole said. "It's an untoward event. It's wrong."

The nursing home contacted the state Health Department, residents and their families, and asked for their help in providing additional information.

The nursing home is interviewing candidates to fill the activities director vacancy.

Kinney Nursing Home and E.J. Noble Hospital are separate corporations but share the same board.