Management of resident funds
Due to the nature of money exchanging hands between your residents and you (your facility) it is prudent of you to keep pristine records regarding your financial affairs. You must also make the choice as to whether or not you will be willing to handle resident funds on behalf of them, which adds even more pressure for your financial office to ensure you are fiscally responsible. Check out the regulation below regarding resident finances provided by The Pennsylvania Department of Human Services:
2800.20. Financial management.
(a) A resident may manage his personal finances unless the resident has a guardian of his estate.
(b) If the residence provides assistance with financial management or holds resident funds, the following requirements apply:
(1) The residence shall keep a record of financial transactions with the resident, including the dates, amounts of deposits, amounts of withdrawals and the current balance.
(2) Resident funds shall be disbursed during normal business hours within 24 hours of the resident’s request.
(3) The residence shall obtain a written receipt from the resident for cash disbursements at the time of disbursement.
(4) Resident funds and property shall only be used for the resident’s benefit.
(5) Commingling of resident funds and residence funds is prohibited.
(6) If a residence is holding more than $200 for a resident for more than 2 consecutive months, the administrator shall notify the resident and offer assistance in establishing an interest-bearing account in the resident’s name at a local Federally-insured financial institution. This does not include security deposits.
(7) The legal entity, administrator, and staff persons of the residence are prohibited from being assigned power of attorney or guardianship of a resident or a resident’s estate.
(8) The residence shall give the resident and the resident’s designated person, an itemized account of financial transactions made on the resident’s behalf on a quarterly basis.
(9) A copy of the itemized account shall be kept in the resident’s record.
(10) The residence shall provide the resident the opportunity to review his own financial record upon request during normal business hours.
Pro Tip:
- (7) The legal entity, administrator, and staff persons of the residence are prohibited from being assigned power of attorney or guardianship of a resident or a resident’s estate.
This is a direct conflict of interest. There should never be a time when an employee shall be acting as a resident’s representative. This opens the door for exploitation of the resident.
Pro Tip:
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 receipt of everything purchased if they are entrusting you with their money.