# 77 Ill. Adm. Code 390.3260: Section 390.3260 Resident's Funds

> Illinois · Regulations · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T77_P390_S390_3260

## Section

- **Citation:** 77 Ill. Adm. Code 390.3260
- **Heading:** Section 390.3260 Resident's Funds
- **Jurisdiction:** Illinois
- **Kind:** Regulations
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** Illinois Administrative Code / Title 77 PUBLIC HEALTH / CHAPTER I: DEPARTMENT OF PUBLIC HEALTH / Part 390 MEDICALLY COMPLEX FOR THE DEVELOPMENTALLY DISABLED FACILITIES CODE / Section 390.3260 Resident's Funds

## Text

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)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_IL_IAC_T77_P390_S390_3260. Check the current official text before relying on it. Not legal advice.