Section 390.3260 Resident's Funds

Section 390

Section 390.3260  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 the resident's financial affairs under

subsections (b)

through (n). (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

the resident's rights regarding personal funds and

listing the services for which the resident will be charged. The facility shall

obtain a signed acknowledgement from each resident or the residents

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.

(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

he 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 must be issued by a company

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

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

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

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

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

acceptable, the alternative must have a person(s) or entity(ies) designated who

can collect in case of loss (e.g., residents, the Department). The alternative

must also provide a guarantee that lost funds will be repaid. The guarantee may

be made either by an independent entity (e.g., a bank) or the facility. If the

facility provides the guarantee, it must be backed by facility money at least

equal to resident funds

ive must have a person(s) or entity(ies) designated who

can collect in case of loss (e.g., residents, the Department). The alternative

must also provide a guarantee that lost funds will be repaid. The guarantee may

be made either by an independent entity (e.g., a bank) or the facility. If the

facility provides the guarantee, it must be backed by facility money at least

equal to resident funds. This money must 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 must 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 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

vernment. 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)

, 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:

1)

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, the resident's parent, to handle it differently.

2)

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.

"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 medical assistance program recipients;

and

3)

Where such funds are withdrawn from the resident's personal

account by any person other than the resident, require the person to whom funds

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

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

of the resident

Healthcare and Family Services

to medical assistance program recipients;

and

3)

Where such funds are withdrawn from the resident's personal

account by any person other than the resident, require the person to whom funds

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

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

of the resident.

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

l)

Unless otherwise provided by State law, the facility shall

upon the death of a resident 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 or her 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)