Hiqa has found several areas of concern within an Inishowen care home for people with disabilities.
Residents were found to have restricted rights to their own property and control of their finances following two inspections earlier this year.
The James Connolly Memorial Residential Unit in Carndonagh was visited by inspectors in June and August.
A report published this week by the health watchdog also criticised the institutional setting of the home and the serious state of disrepair of some parts of the building.
The Inspector found that residents’ rights to their own property was restricted.
Residents had inadequate control over their finances and were only permitted to have €25 on their person.
If residents needed more money to buy something they had to put in a request to management.
In response, management said all the residents required assistance to manage their personal finances and have HSE-held accounts.
It said financial practices were reviewed and each resident now had access to €50 for daily expenditure.
The unit was described by the inspector as a congregated, or institutional, setting for 16 adults with disabilities.
Parts of the premises were found to be in a state disrepair, including the dining room ceiling which leaked in bad weather and staff used buckets to ensure that the floor did not flood.
A review of a number of personal resident plans showed community-based outings were “significantly restricted”.
The second inspection found some improvement but continued non-compliance in the areas of governance, risk management, resourcing, staffing and social care.