This regulation provides safeguards for residents' personal
funds which are handled by licensed homes for the aged.
When a home cashes a resident's check and funds are returned to
the resident, the home shall require the resident to sign a receipt showing the
date and the amount received.
(1) When a home assumes responsibility for a
resident's funds, there shall be a statement on file signed by the resident
authorizing the home to handle the personal funds.
(2) If the resident has been determined by a
physician to be mentally incapable of understanding the terms of the
authorizing statement, the statement shall be signed by a conservator, guardian
or legally liable relative.
(1) The home shall not commingle the
resident's personal funds money with other funds. Personal funds for residents
may be held in a single aggregate trust account or in individual accounts for
each resident. If an aggregate trust account is used, it shall be clearly
titled as such, and the owner or administrator of the home shall be a trustee
of the account.
accounts with the home are prohibited.
(3) An account established with the home as
trustee need not be interest bearing, but if it is, interest shall accrue for
all the residents in an equitable manner.
The Accounting System
shall maintain an accounting
system which reflects the activity of funds in and out of the bank account. The
accounting system shall at a minimum provide for all of the following:
(A) Receipts register or acceptable
equivalent as determined by the department
(B) Disbursement vouchers
(C) Resident's ledger
(2) The bank account statements and the
resident's ledger shall be in agreement and reconcilable at any point in time.
All bank statements and canceled checks of the trust account shall be kept in
the home for at least three years.
(3) All of the personal fund portion of
checks or cash received on behalf of the resident shall be deposited into the
bank account within one week.
Each resident for whom the home handles funds shall be listed in the receipts
register, or its acceptable equivalent. All disbursements (cash or check) shall
be charged directly to the resident's account.
(5) All payments to a third party made on a
resident's behalf shall be authorized by the resident or the resident's
conservator, guardian or legally liable relative. The authorization shall be
signed by the resident, conservator, guardian or legally liable relative and
shall show the date and amount authorized. All payments to a third party on
behalf of a resident shall be consistent with the resident's needs and
(6) Whenever goods or
services are purchased on behalf of a resident, a receipt for the goods or
services shall be obtained and signed by the resident.
(7) When cash is given to the resident from
his or her account, he or she shall sign a receipt showing the date and amount
(8) A receipt is not
required when funds are given to a resident in the form of a check. However,
canceled checks shall be retained.
(9) All authorizations, receipts and canceled
checks shall be retained for a period for at least three years to allow for
audits of individual resident accounts, unless at the end of the three years
there is an audit in progress, in which case such records shall be retained
until the audit is completed.
Authorizations, receipts and canceled checks shall be kept in individual
envelopes or folders with the resident's name on the outside.
All cash receipts and disbursements
shall be recorded in the related registers as follows:
(i) Date of Entry
(ii) Resident Name
(iii) Resident Account Number
(ii) Check Number
(v) Resident Account to be charged
(vi) Specific Item
(i) Date of Entry
(ii) Specific Item
(iv) Copy of resident's signature is kept on
file. Whenever the resident signs a receipt or an authorization, his or her
signature shall be verified.
Date or number of authorization, receipt, or check.
(12) Resident's ledger records
shall be updated at least once a month.
(13) Funds shall be available to residents no
less than fifteen (15) hours a week and no less than five (5) days a week,
except for weeks that contain a bank holiday. In those weeks, funds shall be
available no less than twelve (12) hours a week and no less than four (4) days
a week. The residents shall be fully informed of the time when they may receive
Distribution of Cash
residents with sufficient funds, the home shall honor requests for withdrawals
of petty cash up to $10 per person per day.
(2) For residents with sufficient funds, the
home shall honor requests for withdrawals of cash of more than $10 by the end
of the banking day following the date of the request. The resident shall have
the choice of receiving this payment in cash or by check.
Availability of Records
(1) All resident account records, including
the accompanying bank statements, canceled checks and invoices, shall be kept
in the facility at all times and must be available to the department personnel
and the regional ombudsman upon request. The request may be made in person or
(2) A resident's account
records shall be available to the resident, a conservator of the resident, or a
person authorized by the resident to examine the records.
Use of Funds
(1) A resident's funds are the property of
the resident. They may be spent or saved, as the resident sees fit.
(2) The home may not charge the resident
separately for items included in the monthly room and board rate, or for items
covered by Medicaid.
Balances At or Above the Asset Limit
Whenever the balance in a resident's account reaches two
hundred dollars ($200.00) less than the asset limit set by the Department of
Income Maintenance, the home shall inform the resident that if his or her
assets reach the maximum, the resident will not remain eligible for the State
Supplement to the Aged, Blind or Disabled program. If the resident has been
determined by a physician to be mentally incapable of understanding, the
conservator, guardian or legally liable relative shall be notified whenever the
balance in a resident's account reaches two hundred dollars ($200.00) less than
the asset limit set by the Department of Income Maintenance. This shall be done
within the month the asset limit is reached.
At no time may any funds be withdrawn from the resident's
accounts for use in the business or operating expense of the facility, or for
the personal use of any employee, administrator, owner, or relative thereof.
The personal funds are not available for loan to anyone.
Resident Moves From the Home
When a resident moves from a home, all funds in his or her
account shall be returned to him or her. Any bank account in the resident's
name shall be closed and the canceled book returned to the resident. The
resident's name shall be removed from an aggregate trust account.
Death of a
Upon the death of a resident, the home shall notify the
District Office Resources Supervisor within 10 days. Any funds in the
resident's account shall become part of his or her estate.
Each year an accounting shall be made to
reflecting the balance of the resident account for each resident
for whom the home has handled funds. Also bank statements on all resident
accounts shall be presented annually. The accounting shall consist of the
(A) Recipient's name
(B) D.I.M. number
(C) D.I.M. district office
(D) Petty cash held in the home for the
(E) Balance held in a bank
book for the resident
held in a trustee account for the resident
(G) Any other money being held for the
resident for whom the home is trustee
(H) If the home is not trustee for any
resident's money, it shall so state by each June 1st to the Department of
The accounting to the Department
shall be submitted by June 1st of each year on
a form designated by the Department
and shall be dated, signed by the
administrator of the facility, and mailed to the following address:
State of Connecticut
Dept. of Income Maintenance
Internal Audit Division
110 Bartholomew Avenue
Hartford, Connecticut 06115
Accounting of Residents Funds Upon
Sale of a Home
(1) If the home is sold,
an accounting shall be made to the Department of the balance in the residents'
accounts which are to be transferred to the new owner. This accounting shall be
made on a form designated by the Department and shall be signed and dated by
both the seller and the buyer. In the case of corporations, it shall be signed
by a person authorized on behalf of the corporation. In a partnership, one or
both partners may sign. The accounting shall be accompanied by the most current
bank statement and must be reconciled accurately with this statement. The W-411
form shall be mailed to the address listed in subdivision (2) of subsection (m)
of this section.
(2) If the home
does not handle any recipient's funds, it shall so state upon sale of the
(3) Should changes occur
in personnel responsible for residents' funds accountability, appropriate
changes in authorized signature for checking accounts or designated trustee for
savings passbooks shall be made at financial institutions and documented. The
supporting data shall be made available for review purposes.
Quarterly Reports to the
The home shall provide to the resident, in writing, a quarterly
accounting of monies handled on his or her behalf.