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 West Virginia OHFLAC:
4.8. Management and Control of Resident Funds.
4.8.1. The licensee shall manage a resident’s funds at the written request of the resident only, in the manner directed by the resident, in the resident’s best interests, using generally accepted accounting principles to manage the funds, and in accordance with this rule. (Class III)
4.8.2. The licensee shall assure that the accounting system does not commingle resident funds with the assisted living residence’s funds or with the funds of any other person. (Class III)
4.8.3. The licensee shall deposit a resident’s personal funds exceeding $200 in an interest-bearing account at a local bank. (Class III)
4.8.4. If the licensee handles resident funds in excess of $25 per resident and in excess of $500 for all residents in any month, he or she shall file a bond in an amount and with such surety as the Secretary approves that is sufficient to cover all resident funds at all times. The sum of the bond to be fixed by the Secretary based upon the amount of resident funds may not be less than $2,500, as shown in Table 64-14 A at the end of this rule. When the amount of any bond that is filed is insufficient to adequately protect the resident funds, or when the amount of the bond is impaired, the licensee shall file an additional bond in an amount necessary to adequately protect the resident funds. (Class III)
4.8.5. The licensee shall maintain an account record with supporting documentation for each resident that shows in detail all funds received on behalf of the resident and the disposition of all funds received. Persons shopping for residents shall provide a list with a description and price of items purchased if the purchase exceeds $10, along with payment receipts, for these items. (Class III)
4.8.6. The licensee shall provide upon request a complete, accurate accounting of the receipt, management, and disposition of resident funds to the resident and his or her representative, any authorized entity, and to the Secretary, and at least quarterly to the resident if not requested. (Class III)
4.8.7. If the resident or legal representative requests to terminate the resident’s account, the licensee shall provide an accounting for all funds received and expended, and refund any money remaining in the account to the resident or legal representative. (Class III)
Top Takeaway:
- 8.5. The licensee shall maintain an account record with supporting documentation for each resident that shows in detail all funds received on behalf of the resident and the disposition of all funds received. Persons shopping for residents shall provide a list with a description and price of items purchased if the purchase exceeds $10, along with payment receipts, for these items. (Class III)
Keeping proper records of any resident funds is necessary when managing their finances. You do not want to be in a situation where you cannot account for missing funds or funds that cannot be accounted for when a resident or their representative requests.