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Explain the situation - they may be able to do the $639. Maybe family members can chip in? I wish I had a better answer.
Most pre-paid funeral plans will provide two copies of all the paperwork - one for the person taking out the plan and one for the next of kin. Does the daughter have this or may she have and have forgotten about it.
If grandmom prepaid a funeral the money should be in a Trust of somekind. The NH would not have this paperwork, the Funeral home who set it up would and the family should have a copy. Even though costs have risen, there may be enough money to cremate. As I said on ur previous post, I have never heard of NH taking it upon themselves to purchase a plot for a resident. They usually have no access to a residents personal funds. If the State took over grandmom's care, then the court assigned a guardian.
If grandmom is on Medicaid, your friend needs to call her mother's caseworker and see if Medicaid will pay towards the funeral but it may only be enough to cremate. She can talk to the Social Worker at the facility and see if the State has a program. A funeral home also should be able to help.
She will probably not get a full blown funeral that costs about 10k. Your friend will have to take what is out there.
Another option would be to call the Neptune Society or any other cremation-only place and see what their lowest cost cremation would be and find out if there's a payment plan available. Scatter the ashes or have Neptune dispose of them.