104 CMR 30.02 - Client Funds in Community Programs
(1) Scope. 104 CMR 30.02 shall apply to community programs which are operated, or contracted for, by the Department.
(2) No Department operated or contracted community program shall restrict the right of a client to acquire, retain and dispose of personally-owned funds, including the right to maintain an individual bank account, unless the client is a minor, or has a legally authorized representative with authority over such funds.
(3) A Department operated, or contracted community program may hold funds of a client served by the program only if one of the following circumstances applies:
(a) The program, the vendor operating the program, or an employee of the program, has been designated by the Social Security Administration, the Veterans Administration, or another state or federal government entity, as the representative payee of the client.
(b) The program provides the client with housing, or supported residential services that are designed to assist the client in maintaining his or her residence, and the client or his or her legally authorized representative authorizes the program in writing to hold funds on behalf of the client. The client or legally authorized representative, if any, retains the unrestricted right to manage and spend the funds deposited with the program, unless responsibility to manage and expend the deposited funds is delegated to the program in writing. The funds for which management responsibilities have been delegated to the program shall be referred to in 104 CMR 30.02(3) as delegated funds.
(4) The following requirements apply to programs that hold client funds.
(a) If client funds are held pursuant to 104 CMR 30.02(3)(a), then:
1. the funds that may be held are limited to those that are received as representative payee by the program, the vendor operating the program, or an employee of the program;
2. the applicable federal or state regulations, policies and directives shall govern the holding and use of such funds; and
3. 104 CMR 30.02(4)(b)2 and 3 shall be followed to the extent they are not inconsistent with the applicable Social Security, Veterans Administration or other state or federal government entity's requirements.
(b) If the client funds are held pursuant to 104 CMR 30.02(3)(b), then:
1. Limit on the Amount That May Be Held. A program may not hold or maintain more than $1,000 of a client's funds unless the client is saving funds for a specific purpose that is described in the client's Community Service Plan in accordance with 104 CMR 29.11: Community Service Plan in which event a program may not maintain more than $2,000 of a client's funds.
2. Expenditures. The following applies to how such funds can be expended:
a. Delegated funds cannot be applied to goods or services which the program is obligated by law or funded by contract to provide to the client, which would already have been included in a charge for services or for residential services and supports in the community, or which the patient is otherwise entitled to receive without charge.
b. The Program and Program staff cannot benefit directly or indirectly in any expenditure.
c. Expenditures of delegated funds shall be for a purpose which directly benefits the client and to which the client has agreed.
3. Management of Funds. In managing funds held on behalf of a client,
a. The funds must be maintained in interest bearing accounts if commercially available and fiscally prudent.
b. If the funds are maintained in a group account, individual records must be maintained of each client's deposits and withdrawals and interest must be appropriately apportioned among the clients in the group.
c. Records. The program must be able to account for all funds received from a client or received on his or her behalf. A record shall be maintained for each client showing the amount of funds received, date received and source of the funds and for all funds disbursed, the amount, date disbursed, reason for disbursement, and to whom funds were disbursed.
d. Accounting. The following persons shall, upon their request, be provided a complete written account of all funds of a client or, if requested, a written or oral statement of the current balance of funds of the client:
i. the client;
ii. the client's legally authorized representative, if any;
iii. if the program or an employee of the program is the representative payee of the client, the District Office of the Social Security Administration or the Veterans Administration concerning funds received from these agencies; and
iv. the Department.
4. Internal Controls. The program must have written procedures concerning internal controls and accounting procedures for the management of client funds deposited with the program and such policies and procedures shall be fully implemented by the program.
5. The program or program staff cannot have a direct or indirect ownership or survivorship interest in the funds.
6. The client's Community Service Plan pursuant to 104 CMR 29.11: Community Service Plans shall address, as appropriate, the client's needs and desires for fiscal budgeting and management training and planning.
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