Managing resident finances
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 Nevada Department of Health and Human Services:
NAC 449.267 Money and property of residents. (NRS 449.0302)
1. An employee of a residential facility shall not handle a resident’s money without first being requested to do so in writing by the resident or his or her representative.
2. An accurate record must be kept of all money deposited with the facility for use by the resident, including withdrawals. The record must include:
(a) A separate accounting of the money held by the facility on behalf of the resident;
(b) Receipts for expenditures made by the facility on behalf of the resident; and
(c) A written acknowledgment by the resident for each withdrawal of his or her money.
3. Unless a resident otherwise requests in writing, all money in excess of $400 held by the facility on behalf of the resident must be maintained in a financial institution in an account separate from the facility’s operating accounts and must be clearly designated as such.
4. Each resident must have access to his or her money held at the facility on his or her behalf during normal business hours on each business day.
5. If a member of the staff of a residential facility receives from a resident a request to make a withdrawal of money in such an amount that the member of the staff has reason to believe that the resident is being or has been exploited, the member of the staff shall report the transaction to:
(a) If the resident is 60 years of age or older:
(1) The local office of the Aging and Disability Services Division of the Department of Health and Human Services;
(2) The local law enforcement agency;
(3) The office for protective services for the county in which the facility is located if that county has such an office; or
(4) The toll-free telephone service designated by the Aging and Disability Services Division pursuant to NRS 200.5093.
(b) If the resident is less than 60 years of age:
(1) The office for protective services for the county in which the facility is located if that county has such an office; or
(2) The local law enforcement agency if the county in which the facility is located does not have an office for protective services.
6. Except as otherwise provided in subsection 7, an operator or employee of a residential facility shall not accept appointment as a guardian or conservator of the estate of any resident, become a substitute payee for any payments made to any resident or accept an appointment as an attorney in fact for any resident.
7. If a resident whose only source of income is in the form of monthly checks is legally determined to be unable to manage his or her money and documentary evidence can be produced showing that efforts to obtain a legal guardian have failed, the facility may be the substitute payee on the checks. Records of all checks received, deposited or dispersed by the facility must be maintained in the resident’s file.
8. Money that is held by a residential facility on behalf of a resident must be returned to the resident or his or her representative within 30 days after the resident is discharged from the facility.
9. An employee of a residential facility shall not borrow money from a resident.
Top Takeaways:
- Except as otherwise provided in subsection 7, an operator or employee of a residential facility shall not accept appointment as a guardian or conservator of the estate of any resident, become a substitute payee for any payments made to any resident or accept an appointment as an attorney in fact for any resident.
This is a direct conflict of interest. There should never be a time when an employee shall be acting as a resident’s representative.
- An employee of a residential facility shall not handle a resident’s money without first being requested to do so in writing by the resident or his or her representative.
If a facility is managing resident funds, they must have authorization from the resident or their responsible party. You should be sure to have this signed document stored in the resident’s financial file.