Wow...so they're essentially telling you that you're responsible for her actions now? If she's not a threat to herself, why do you have to hide knives? Where do you draw the line, are you supposed to hide drain cleaner? Belts? Scissors? And they told you to "control her medication" ? That would be funny if it weren't all so sad.
She'll probably threaten it again and next time I would think she'd be admitted to a psych ward whether she agrees or not, so maybe it won't be 30 days of having her in your house.
I'm really sorry.