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Our 93 year old dad is in a NH due to a stroke. We have a special needs sister that is a middle child. The youngest sister is living with the special needs sister. I am POA, the oldest child and also legal guardian of special needs sister. Recently we have had to put a lot of money in to dad's house. We have used VA pension payments to make these repairs and also pay for dad future funeral arrangements.  The youngest sister feels that me and the next oldest sister ( also legal guardian) are making decisions about dad's money that she wants to be included in. I have no problem with that except she does not follow through on anything. We recently had new flooring put in dad's kitchen, hallway and dining room. She was asked to please move things our of those rooms except the heavy hutch. She did not move anything and said she did not know what the big deal was. I should have reminded her. She always wants what is more expensive instead of what we can afford and doesn't like our taste in anything. I have have heated discussions with her about things and am pretty much done. POA is not a nice job but I am doing the best I can do and always include my sister that is second in line. How do I handle this. Any suggestions?

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I would carry on as you already are, you can include her in discussions but make the decisions that make the most sense to the majority. And you all ready know she can't be relied on to pitch in, so proceed as though she isn't available, if she helps it is a bonus, if not it is much less frustrating.
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My other sister and me would take our special needs sister to live with us. We wanted he to stay in the house she has lived in for 50 years which was the wishes of our parents. My youngest sister has all ready lost jobs, a house and gone bankrupt so she is not too dependable. I never make a decision without my other sister's opinion
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This is a question, not a snide snipe at you, but would you prefer it and what would happen with the sister with disabilities if youngest sister were to move on and move out?
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