Managing 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 Ohio Department of Health:
Rule 3701-16-11 |Resident finances
(B) A residential care facility shall not coerce, induce, or prompt a resident to assign, transfer, give, or sign over to the facility money, valuables, insurance benefits, property, or anything of value other than payment for services rendered by the facility. A residential care facility shall not manage a resident’s financial affairs unless authorized by the resident or a sponsor with power of attorney. Such authorization shall be in writing and shall be attested to by a witness who is not connected in any manner whatsoever with the residential care facility or its administrator. A facility that manages a resident’s financial affairs shall:
(1) Maintain accounts pursuant to division (A)(27)(b) of section 3721.13 of the Revised Code of resident funds and personal property or possessions deposited for safekeeping with the facility for use by the resident or resident’s sponsor. The resident has the right to receive, upon written or oral request, an accounting statement of financial transactions made on the resident’s behalf. This statement shall include a:
(a) Complete record of all funds, personal property, or possessions from any source whatsoever, that have been deposited for safekeeping with the facility for use by the resident or resident’s sponsor; and
(b) Listing of all deposits and withdrawals transacted, which shall be substantiated by receipts that shall be available for inspection and copying by the resident or sponsor.
(2) Deposit the resident’s funds in excess of one thousand dollars, and may deposit the resident’s funds that are one thousand dollars or less, in an interest-bearing account separate from any of the facility’s operating accounts. Interest earned on the resident’s funds shall be credited to the resident’s account. A resident’s funds that are one thousand dollars or less and have not been deposited in an interest-bearing account may be deposited in a noninterest-bearing account or petty cash fund.
(3) Purchase a surety bond or otherwise provide assurance satisfactory to the director to assure the security of all residents’ funds managed by the facility.
(4) Upon the resident’s transfer, discharge, or death, close all resident accounts, make a final accounting, and make provisions for the conveyance of any remaining funds to the resident or the resident’s estate.
(5) Allow the resident access to his or her funds during normal bank business hours within the community.
(6) Not require a resident to allow the facility to manage the resident’s financial affairs as a condition of admission to the facility.
(C) Neither the administrator of a residential care facility nor facility staff may serve as the guardian or attorney-in-fact of a resident unless related by blood, marriage, or adoption to that resident.
- A residential care facility shall not manage a resident’s financial affairs unless authorized by the resident or a sponsor with power of attorney. Such authorization shall be in writing and shall be attested to by a witness who is not connected in any manner whatsoever with the residential care facility or its administrator.
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.