Section 350.3260 Resident's Funds

Section 350

Section 350.3260  Resident's

Funds

a)

A resident shall be permitted to manage his or her own

financial affairs unless he or she or his or her guardian or if the resident is

a minor, his or her parent, authorizes the administrator of the facility in

writing to manage such resident's financial affairs under

subsections (b)

through (o). (Section 2-102 of the Act)

b)

The facility shall at the time of admission, provide, in

order of priority,  each resident, or the resident's guardian, if any, or the

resident's representative, if any, or the resident's immediate family member,

if any, with a written statement explaining

to the resident and the

resident's spouse their spousal impoverishment rights as defined at Section 5-4

of the Illinois Public Aid Code, and at Section 303 of Title III of the

Medicare Catastrophic Coverage Act of 1988 (P.L. 100 360), and

the

resident's rights regarding personal funds and listing the services for which

the resident will be charged.  The facility shall

obtain a signed

acknowledgment

from each resident or the resident's guardian, if any, or the resident's

representative, if any, or the resident's immediate family member, if any, that

such person has received the statement.

(Section 2-201(1) of the Act)

c)

The facility may accept funds from a resident for

safekeeping and managing, if it receives written authorization from, in order

of priority, the resident or the resident's guardian, if any, or the resident's

representative, if any, or the resident's immediate family member, if any; such

authorization shall be attested to by a witness who has no pecuniary interest

in the facility or its operations, and who is not connected in any way to

facility personnel or the administrator in any manner whatsoever

ion from, in order

of priority, the resident or the resident's guardian, if any, or the resident's

representative, if any, or the resident's immediate family member, if any; such

authorization shall be attested to by a witness who has no pecuniary interest

in the facility or its operations, and who is not connected in any way to

facility personnel or the administrator in any manner whatsoever.

(Section

2-201(2) of the Act)

d)

The facility shall maintain and allow, in order of

priority, each resident or the resident's guardian, if any, or the resident's

representative, if any, or the resident's immediate family member, if any,

access to a written record of all financial arrangements and transactions

involving the individual resident's funds.

(Section 2-201(3) of the Act)

e)

The facility shall provide, in order of priority, each

resident, or the resident's guardian, if any, or the resident's representative,

if any, or the resident's immediate family member, if any, with a written

itemized statement at least quarterly, of all financial transactions involving

the resident's funds.

(Section 2-201(4) of the Act)

f)

The facility shall purchase a surety bond, or otherwise

provide assurance satisfactory to the Departments of Public Health and Financial

and Professional Regulation that all residents' personal funds deposited with

the facility are secure against loss, theft, and insolvency

. (Section 2-201(5)

of the Act)

1)         If a surety bond is secured, it shall be issued by a company

licensed to do business in Illinois, the amount of bond shall be equal to or

greater than all resident funds managed by the facility, and the obligee named

in the bond shall be the Illinois Department of Public Health or its assignees.

2)         If an alternative to a surety bond is secured, the alternative

shall provide a protection equivalent to that afforded by a surety bond

d by a company

licensed to do business in Illinois, the amount of bond shall be equal to or

greater than all resident funds managed by the facility, and the obligee named

in the bond shall be the Illinois Department of Public Health or its assignees.

2)         If an alternative to a surety bond is secured, the alternative

shall provide a protection equivalent to that afforded by a surety bond.  To be

acceptable, the alternative shall have a person or persons or entity or

entities designated who can collect in case of loss (e.g., residents, the

Department).  The alternative shall also provide a guarantee that lost funds

will be repaid.  The guarantee may be made by either an independent entity

(e.g., a bank) or the facility.  If the facility provides the guarantee, it shall

be backed by facility money at least equal to resident funds.  This money shall

be reserved solely for the purpose of assuring the security of resident funds.

Two examples of acceptable alternatives to surety bonds are letters of credit

and self-insurance.  Both surety bonds and alternatives shall protect the full

amount of residents' funds deposited with the facility.

3)         Any alternative to a surety bond shall be submitted to the

Department for review and approval.

g)

The facility shall keep any funds received from a resident

for safekeeping in an account separate from the facility's funds, and shall at

no time withdraw any part or all of such funds for any purpose other than to

return the funds to the resident upon the request of the resident or any other

person entitled to make such request, to pay the resident his or her allowance,

or to make any other payment authorized by the resident or any other person

entitled to make such authorization.

(Section 2-201(6) of the Act)

h)

The facility shall deposit any funds received from a

resident in excess of $100 in an interest bearing account insured by agencies

of, or corporations chartered by, the State or federal government

ch request, to pay the resident his or her allowance,

or to make any other payment authorized by the resident or any other person

entitled to make such authorization.

(Section 2-201(6) of the Act)

h)

The facility shall deposit any funds received from a

resident in excess of $100 in an interest bearing account insured by agencies

of, or corporations chartered by, the State or federal government.  The account

shall be in a form which clearly indicates that the facility has only a

fiduciary interest in the funds and any interest from the account shall accrue

to the resident.

(Section 2-201(7) of the Act)

i)

The facility may keep up to $100 of a resident's money in

a non-interest bearing account or petty cash fund, to be readily available for

the resident's current expenditures.

(Section 2-201(7) of the Act)

j)

The facility shall return to the resident, or the person

who executed the written authorization required in subsection

(c)

of

this Section, upon written request, all or any part of the resident's funds

given the facility for safekeeping, including the interest accrued from

deposits.

(Section 2-201(8) of the Act)

k)

The facility shall place any monthly allowance to which a

resident is entitled in that resident's personal account, or give it to the

resident, unless the facility has written authorization from the resident or

the resident's guardian, or if the resident is a minor, his parent, to handle

it differently.

(Section 2-201(9) of the Act)

l)

Unless otherwise provided by State law, upon the death of

a resident, the facility shall provide the executor or administrator of the

resident's estate with a complete accounting of all the resident's personal

property, including any funds of the resident being held by the facility

s guardian, or if the resident is a minor, his parent, to handle

it differently.

(Section 2-201(9) of the Act)

l)

Unless otherwise provided by State law, upon the death of

a resident, the facility shall provide the executor or administrator of the

resident's estate with a complete accounting of all the resident's personal

property, including any funds of the resident being held by the facility.

(Section 2-201(10) of the Act)

m)

If an adult resident is incapable of managing his funds and

does not have a resident's representative, guardian, or an immediate family

member the facility shall notify the Office of the State Guardian of the

Guardianship and Advocacy Commission.

(Section 2-201(11) of the Act)

n)

If the facility is sold, the seller shall provide the buyer

with a written verification by a public accountant of all residents' monies and

properties being transferred, and obtain a signed receipt from the new owner.

(Section 2-201(12) of the Act)

o)

The facility shall take all steps necessary to ensure that

a personal needs allowance that is placed in a resident's personal account is

used exclusively by the resident or for the benefit of the resident.  Where

such funds are withdrawn from the resident's personal account by any person

other than the resident, the facility shall require such person to whom funds

constituting any part of a resident's personal needs allowance are released to

execute an affidavit that such funds shall be used exclusively for the benefit

of the resident

, with verifiable receipts

.

(Section 2-201(9)(b) and

(c) of the Act) "Personal needs allowance," for the purposes of this

subsection, refers to the monthly allowance allotted by the Illinois Department

of Healthcare and Family Services to public aid recipients.