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 Virginia DOSS:
22VAC40-73-80. Management and control of resident funds.
Pursuant to § 63.2-1808 A 3 of the Code of Virginia, the resident shall be free to manage his personal finances and funds regardless of source, unless a committee, conservator, or guardian has been appointed for a resident. However, the resident may request that the facility assist with the management of personal funds, and the facility may assist the resident in such management under the following conditions:
- There shall be documentation of this request and delegation, signed and dated by the resident and the administrator. The documentation shall be maintained in the resident’s record.
- All resident funds shall be held separately from any other amounts of money of the facility. No resident funds shall be borrowed, used as assets of the facility, or used for purposes of personal interest by the licensee, operator, administrator, or facility staff.
- The resident shall be given a choice of whether he wishes his funds to be maintained in an individual resident account or in a single account for the accumulated funds of multiple residents. Either type of account may be interest-bearing. If the account is interest-bearing, the resident must be provided his appropriate portion of the interest.
- The facility may charge a reasonable amount for administration of the account, except for residents who are recipients of an auxiliary grant as account administration is covered by the grant.
- The facility shall maintain a written accounting of money received and disbursed by the facility that shows a current balance. The written accounting of the funds shall be made available to the resident at least quarterly and upon request, and a copy shall also be placed in the resident’s record.
- The resident’s funds shall be made available to the resident upon request.
22VAC40-73-90. Safeguarding residents’ funds.
No licensee, facility administrator, or staff person shall act as either attorney-in-fact or trustee unless the resident has no other preferred designee and the resident himself expressly requests such service by or through facility personnel. When the licensee, facility administrator, or staff person acts as attorney-in-fact or trustee, the following applies:
- There shall be documentation that the resident has requested such service and from whom, signed and dated by the resident, the licensee, the facility administrator, and if a staff person is to provide the service, the staff person. The documentation shall be maintained in the resident’s record.
- The licensee, facility administrator, or staff person so named attorney-in-fact or trustee shall be accountable at all times in the proper discharge of such fiduciary responsibility as provided under Virginia law.
- The facility shall maintain a written accounting of money received and disbursed by the licensee, facility administrator, or staff person that shows a current balance. The written accounting of the funds shall be made available to the resident at least quarterly and upon request, and a copy shall also be placed in the resident’s record.
- The resident’s funds shall be made available to the resident upon request.
- Upon termination of the power of attorney or trust for any reason, the licensee, facility administrator, or staff person so named attorney-in-fact or trustee shall return all funds and assets, with full accounting, to the resident or to another responsible party expressly designated by the resident.
Top Takeaways:
- All resident funds shall be held separately from any other moneys of the facility. No resident funds shall be borrowed, used as assets of the facility, or used for purposes of personal interest by the licensee, operator, administrator, or facility staff.
The money you are handling for your residents is theirs and theirs alone! Do not comingle this money or allow unauthorized persons to handle it.
- The facility shall maintain a written accounting of money received and disbursed by the facility that shows a current balance. The written accounting of the funds shall be made available to the resident at least quarterly and upon request, and a copy shall also be placed in the resident’s record.
You need to keep clear cut records of every transaction that occurs with the residents money and be accountable for any monies that are not accounted for.