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 Arizona Bureau of Residential Facilities Licensing:
Resident Finances
- A manager shall:
- Not act as a resident’s representative and not allow an employee or a family member of an employee to act as a resident’s representative for a resident who is not a family member of the employee;
- If the assisted living facility administers personal funds accounts for residents and is authorized in writing by a resident or the resident’s representative to administer a personal funds account for the resident:
- Ensure that the resident’s personal funds account does not exceed $2,000;
- Maintain a separate record for each resident’s personal funds account, including receipts and expenditures;
- Maintain the resident’s personal funds account separate from any account of the assisted living facility; and
- Provide a copy of the record of the resident’s personal funds account to the resident or the resident’s representative at least once every three months;
- Notify the resident’s representative, family member, public fiduciary, or trust officer if the manager determines that a resident is incapable of handling financial affairs; and
- Except when a resident’s need for assisted living services changes, as documented in the resident’s service plan, ensure that a resident receives at least 30 calendar days written notice before any increase in a fee or charge
Top Takeaways:
- Not act as a resident’s representative and not allow an employee or a family member of an employee to act as a resident’s representative for a resident who is not a family member of the employee;
This is a direct conflict of interest. There should never be a time when an employee shall be acting as a resident’s representative.
- Except when a resident’s need for assisted living services changes, as documented in the resident’s service plan, ensure that a resident receives at least 30 calendar days written notice before any increase in a fee or charge
If you plan on issuing a rate increase for residents it is necessary for you to give residents a 30 day notice. If you are altering their service plan and a change in price is needed you are not required to give a resident notice.