Resident Personal Property and Funds

ARCPs in the state of Louisiana have specific duties to honor if they chose to manage resident funds and/or property. Each facility must make the decision whether they will take on the responsibility of managing these delicate matters. If your facility decides to take on this responsibility you need to be sure to adhere to the following regulation provided by the DHH:

  • 6861. Resident Personal Property and Funds
  1. Personal Possessions. The ARCP may, at its discretion, offer safekeeping of valuable possessions. The ARCP shall have a written statement of its policy regarding the safekeeping of valuable possessions.
  2. If the ARCP offers such a service, a copy of the written policy and procedures shall be given to a resident at the time of his/her occupancy.
  3. The ARCP shall give the resident a receipt listing each item that the ARCP is holding in trust for the resident. A copy of the receipt shall be placed in the resident’s record. The list shall be revised as items are added or removed.
  4. Resident Funds
  5. An ARCP may offer to safe keep residents’ readily accessible personal funds up to $200 and/or assist with the management of funds in excess of $200. The ARCP shall ensure that the resident’s funds are readily available upon the resident’s request.
  6. The residency agreement shall include the resident’s rights regarding access to the funds, limits on incremental withdrawals, and the charges for the service if any.
  7. The ARCP shall provide a surety bond or otherwise provide assurance satisfactory to the secretary to assure the security of all personal funds entrusted to the ARCP.
  8. If an ARCP offers the service of safekeeping readily accessible personal funds up to $200, and if a resident wishes to entrust funds, the ARCP shall:
  9. obtain written authorization from the resident’s representative, if applicable, as to safekeeping of funds;
  10. provide each resident with a receipt listing the amount of money the ARCP is holding in trust for the resident;
  11. maintain a current balance sheet containing all financial transactions to include the signatures of staff and the resident for each transaction; and
  12. afford the resident the right to examine the account during routine business hours.
  13. If an ARCP offers the service of assisting with the management of funds in excess of $200, the following shall apply.
  14. The ARCP shall obtain written authorization to manage the resident’s funds from the resident and the representative if applicable.
  15. The resident shall have access through quarterly statements and, upon request, financial records.
  16. The ARCP shall keep funds received from the resident for management in an individual account in the name of the resident.
  17. Unless otherwise provided by state law, upon the death of a resident, the ARCP shall provide the executor or director of the resident’s estate, or the resident’s representative, if applicable, with a complete accounting of all the resident’s funds and personal property being held by the ARCP. The ARCP shall release the funds and property in accordance with all applicable state laws.
  18. If ARCP staff is named as representative payee by Social Security or the Railroad Retirement Board or as fiduciary by the US Department of Veterans Affairs, in addition to meeting the requirements of those agencies, the ARCP shall hold, safeguard, manage and account for the personal funds of the resident as follows.
  19. The ARCP shall deposit any resident’s personal funds in excess of $50 in an interest-bearing account (or accounts) separate from the ARCP’s operating accounts, and that credits all interest earned on the resident’s funds to that account. In pooled accounts, there shall be a separate accounting for each resident’s share.
  20. The ARCP shall maintain a resident’s personal funds that do not exceed $50 in a non-interest bearing account, interest-bearing account, or petty cash fund.
  21. The ARCP shall establish and maintain a system that assures a full and complete and separate accounting, according to generally accepted accounting principles, of each resident’s personal funds entrusted to the ARCP on the resident’s behalf.
  22. The system shall preclude any commingling of resident funds with ARCP funds or with the funds of any person other than another resident.
  23. The individual financial record shall be available through quarterly statements and on request to the resident and/or the resident’s representative, if applicable.

Top Takeaway:

Keep track of any funds or property given to you by the resident. You do not want to be accused of theft or “misplacing” these items when residents ask for them. Be sure to give them the receipt of everything purchased if they are entrusting you with their money.