Source: https://hhs.texas.gov/laws-regulations/handbooks/contracting-provide-assisted-living-residential-care-services/subchapter-d-trust-funds
Timestamp: 2018-12-15 16:53:55
Document Index: 266522276

Matched Legal Cases: ['§46', '§46', '§46', '§46', '§46', '§92', '§46', '§46']

CPALRCS, Subchapter D, Trust Funds | Texas Health and Human Services
CPALRCS, Subchapter D, Trust Funds
Home > Laws & Regulations > Handbooks > Contracting to Provide Assisted Living and Residential Care Services > CPALRCS, Subchapter D, Trust Funds
Contracting to Provide Assisted Living and Residential Care Services
Subchapter B, Provider Contracts
Subchapter C, Provider Requirements
Subchapter D, Trust Funds
Revision 04-1
§46.61 Trust Fund Management
(a) Clients have the right to:
(1) perform their own money management;
(2) request that the facility provide or assist with money management; or
(3) designate another person to provide or assist with money management.
(b) The case manager will inform the facility if a client wishes the facility to provide or assist with money management.
(c) The facility must not require clients to request the facility provide or assist with money management. The facility must havethe client's or the client's representative's written authorization to provide or assist with money management.
(d) The facility must provide a written statement of the trust fund rights and responsibilities regarding the client's financialaffairs. The written statement must:
(1) be provided to each client or client's representative who chooses to have the facility provide or assist with money management;
(2) be provided at the time of admission or request; and
(3) include the following:
(A) a statement that the facility must not require clients to allow the facility to provide or assist with money management;
(B) the client or the client's representative's written request and authorization to provide or assist with money management; and
(C) any charge by the facility for providing or assisting with money management is included in the facility's basic rate.
§46.63 Trust Fund Bank Account
(a) Bank account.
(1) The contracted assisted living facility must keep funds received from or on behalf of a client for a trust fund in a separate bank account from the facility's operating funds. The account must be identified as "Trustee, (Name of Facility), Client's Trust Fund Account."
(2) The facility may use the following type of checking accounts for the trust fund:
(A) a pooled checking account, which is a single checking account that contains all the personal funds received from each client utilizing the trust fund;
(B) a client-choice individual checking account, which is a single checking account that contains only the personal funds of a single client. The client or the client's representative must request this type of trust fund in writing; or
(C) a facility-choice individual checking account, which is a single checking account that contains only the funds of a single client. This type of trust fund is set up for the convenience of the facility.
(b) Commingled funds. A facility may commingle the trust funds of private-pay clients and Texas Department of Human Services (DHS) clients.
(1) Each private-pay client or the client's representative whose funds are commingled with DHS client funds must sign and date a permission form upon admission or at the time of request for trust fund services. The permission form must include:
(A) permission for the facility to commingle the personal funds of the private pay client with DHS clients;
(B) permission for the facility to maintain trust fund records of private-pay clients in the same manner as the DHS client's trust fund records; and
(C) a provision allowing inspection of the private-pay client's trust fund records by DHS staff.
(2) The facility must keep financial records of private pay clients with commingled funds in the same manner as the financial records of DHS clients as specified in this chapter.
(c) Banking charges.
(1) The facility is responsible for bank fees for the trust fund kept in a pooled checking account or in facility-choice individual checking accounts. The facility must not charge these fees to the client or the client's representative. The facility may report these fees as allowable costs on its cost report.
(2) The client or the client's representative is responsible for bank fees for the trust fund kept in client-choice individual checking accounts.
(3) The facility must not charge the client or the client's representative for the administrative handling of any allowable type of checking account. The facility may report these costs on its cost report.
(d) Interest earned. The facility must distribute the interest earned on the pooled checking account, if the pooled checking account is interest-bearing, to all clients utilizing the trust fund. The facility must prorate the actual interest earned to each client's account:
(1) at the time the financial institution pays the interest; and
(2) on the basis of the client's balance at the time the financial institution pays the interest.
§46.65 Trust Fund Transactions
(a) Transactions.
(1) The facility must keep records of all trust fund transactions.
(2) Facility staff must record on the client's trust-fund ledger or deposit/withdrawal document at least the following:
(A) the date and amount of each deposit;
(B) the source of each deposit;
(C) the date and amount of each withdrawal;
(D) the reason for each withdrawal;
(E) the name of the person or entity who accepted the withdrawn funds; and
(F) the balance after each transaction.
(3) The client or the client's representative must sign for each withdrawal transaction at the time of the transaction.
(A) The signature must be on the trust-fund ledger, deposit/withdrawal document, or trust fund receipt.
(B) At least one witness must sign for each withdrawal transaction if the client or the client's representative cannot sign.
(C) A signature is not required if the payment meets the definition of a recurring payment as described in subsection (c) of this section.
(4) The facility must record transactions within 14 days of occurrence.
(b) Bulk purchases. The facility may make bulk purchases for items used by multiple clients.
(1) The bulk purchase must be traceable to individual clients.
(2) The receipt for the bulk purchase must show the following:
(A) the names of the clients for whom the purchase was made; and
(B) the portion of the total price charged to each client.
(3) The facility must not charge the client or the client's representative more than the actual cost of the client's portion of items that are purchased in bulk.
(c) Recurring payments.
(1) The facility must obtain the client's or the client's representative's written request and authorization to make recurring payments on behalf of the client. The written authorization must include the:
(A) name of the business or entity to which the recurring payment is made;
(B) amount of the recurring payment. If the recurring payment is not a set amount, the authorization must include the method for determining the amount of the recurring payment;
(C) date the payment will begin; and
(D) signature and signature date of the client or the client's representative.
(2) The client or the client's representative must request and authorize the facility to stop recurring payments on behalf of the client.
(A) The authorization may be oral or written.
(B) The facility must document the request, including the:
(i) name of the business or entity to which the recurring payment is made; and
(ii) date the payment will stop.
(3) The facility is not required to have a receipt for recurring payments made on behalf of the client.
(d) Petty cash fund.
(1) A petty cash fund is part of the pooled checking account trust fund kept on hand in cash by the facility. The petty cash fund is used for disbursement to clients for the purchase of minor items.
(2) The facility must keep the petty cash fund locked.
(3) The facility must set a dollar limit for petty cash transactions.
(A) The facility must document:
(i) the dollar limit of petty cash transactions; and
(ii) a list of any exceptions to the petty cash transaction limit, if applicable.
(B) The facility must follow the procedures in subsection (a) of this section for withdrawals that exceed the petty cash transaction limit.
(4) The facility must keep records of all petty cash fund transactions. The petty cash fund record must be a:
(A) petty cash fund ledger; or
(B) petty cash fund receipt.
(5) A petty cash fund ledger or receipt must include the:
(B) date of the withdrawal;
(C) amount of the withdrawal; and
(D) signature of client or the client's representative, or at least one witness if the client or the client's representative cannot sign.
(6) The facility must use the following guidelines to replenish the petty cash fund:
(A) Count the money in the petty cash fund.
(B) Determine the difference between amount in the petty cash fund and the amount needed in the petty cash fund.
(C) Cash a check for the difference between the amount in the petty cash fund and the amount needed in the petty cash fund.
(i) Write the check for cash on the appropriate checking account, either the:
(I) pooled trust fund checking account; or
(II) individual client trust fund checking account.
(ii) Indicate “petty cash fund” in the "memo" line of the check.
(D) Put the cash in the petty cash fund.
(7) The facility must reconcile the petty cash fund at least monthly.
(8) The facility must follow the requirements for transactions in subsection (a) of this section to post petty cash fund transactions to the trust fund ledger. However, the client's or the client's representative's signature is not required on the trust fund ledger or trust fund receipt if the client's or the client's representative's signature is on the petty cash fund ledger or receipt.
(e) Receipts.
(1) A trust fund receipt is required when a direct payment is made from the client's trust fund. The facility may use printed receipts from vendors as trust fund receipts only if:
(A) all elements from paragraph (4) of this subsection are present; or
(B) any missing elements from paragraph (4) of this subsection are added.
(2) A trust fund receipt is required when a payment is received by the facility on behalf of a client. This is not applicable to funds direct-deposited to the trust fund account.
(3) A trust fund receipt is not required when the client or the client's representative makes a direct purchase with funds withdrawn from the trust fund. The withdrawn funds must meet the requirements listed in subsection (a) of this section.
(4) A trust fund receipt must contain the:
(B) month, day, and year the receipt was written or created;
(C) total amount of money spent or received for the client;
(D) specific item(s) purchased; and
(E) name of the business or entity from which the purchase was made or the payment received.
(5) A trust fund receipt may contain the signature of the client or the client's representative for payments made from the trust fund. At least one witness must sign for each payment made if the client or the client's representative cannot sign.
(f) Limitations on withdrawals. The facility must not use the client's personal funds to purchase any item or service that the Texas Department of Human Services requires the facility to provide. The facility must purchase additional items or service with the client's personal funds only as described in §46.15 of this chapter (relating to Additional Services and Fees).
§46.67 Trust Fund Documentation
(a) Accounting and records.
(1) The facility must keep written records of all financial transactions involving the client's personal funds that the facility is holding, safeguarding, and accounting. The written records may be in any format.
(2) The facility must keep the accounting records in accordance with generally accepted accounting principles (GAAP).
(3) The facility must keep records in accordance with its fiduciary duties for client trust funds.
(4) The facility must include at least the following in the accounting records:
(A) each client's name;
(B) identification of each client's representative or person assigned to receive the client's income, if any;
(C) admission date;
(D) each client's earned interest, if any;
(E) documentation of each transaction; and
(F) receipts for purchases and payments, including cash register tapes or sales statements from a seller.
(b) Quarterly statement. The facility must provide quarterly statements to the client or the client's representative, as described in §92.125(a)(3)(L) of this title (relating to Resident's Bill of Rights and Provider Bill of Rights).
(c) Access to trust fund records.
(1) The facility must make an individual client's financial record and supporting documents available at any time during working hours to the client, the client's representative, and the Texas Department of Human Services.
(2) This review can be made without prior notification.
§46.69 Trust Fund Refunds
(a) The facility must return the full balance of the client's personal funds held in the facility to the client or the client'srepresentative immediately upon request if the request is made during normal business hours. For purposes of this subsection,normal business hours are 8:00 a.m. to 5:00 p.m. on working days, or at the beginning of the next normal business hours ifthe request is received during hours other than normal business hours.
(b) The facility must return the full balance of the client's personal funds that the facility has deposited in any bank accountto the client or the client's representative within ten working days of request. This refund must include any interest reportedas of the date of the request.
§46.71 Trust Fund Procedures for Client Discharge
(a) Client transfer.
(1) The facility must write a check to the resident for all funds held in the pooled checking account. This must include any interest accrued.
(2) The facility must complete the transfer within ten working days of the effective date of the transfer.
(3) The facility must not make any payments out of a client's trust fund after the effective date of transfer, except as described in this subsection.
(4) The cleared check will suffice as a receipt.
(b) Client discharge.
(1) The facility must refund the discharged client's personal funds and provide a final accounting of those funds to the client or the client's representative either:
(B) by mail via certified return receipt.
(2) The facility must complete the refund and provide a final accounting within ten working days of the date of discharge, or the date of the facility's awareness of the client's discharge, whichever is later.
(3) The facility must not make any payment out of a discharged client's trust fund, except as described in this subsection.
(4) The facility must maintain the following documentation in the client's trust fund record:
(A) a copy of the final accounting of the client's personal funds;
(B) the amount refunded to the discharged client or the client's representative;
(C) the date the refund was made. The date the refund was made is either:
(i) the date the funds were refunded in person; or
(ii) the date the certified return receipt shows the refund was mailed; and
(D) the method of refund. The facility must:
(i) obtain the signature of the client or the client's representative if the refund was in cash; or
(ii) document the check number if the refund was made by check.
(c) Client death.
(1) The facility must refund the deceased client's personal funds and provide a final accounting of those funds to the beneficiary, heir, or executor of the deceased client's estate either:
(2) The facility must complete the refund and provide a final accounting within 30 days of awareness of the client's death, if the beneficiary, heir, or executor is known, located, or identified. The facility must make a bona fide effort to locate the beneficiary, heir, or executor of a deceased client's estate within 30 days.
(3) The facility must not make any payments out of a deceased client's trust fund, except as described in this subsection.
(4) The facility must maintain the following documentation in the client trust fund record:
(B) the amount refunded to the beneficiary, heir, or executor of the deceased client's estate;
(5) The facility must use the following procedures to clear the client's account if it is unable to locate or identify the beneficiary, heir, or executor of a deceased client's estate within 30 days:
(A) The facility must send the personal funds of the deceased client to the Texas Department of Human Services (DHS), Fiscal Division, P.O. Box 149055, Austin, Texas 78714-9055 with the following information:
(ii) the client's social security number; and
(iii) the amount of money being submitted to DHS for escheat.
(B) The facility must maintain the following in the client trust fund record:
(i) documentation of the facility's efforts to locate the beneficiary, heir, or executor of a deceased client's estate; and
(ii) proof of submission of the personal funds of a deceased client to DHS.
(d) Contract assignment.
(1) The assignor (the facility transferring the contract) must transfer the bank balances of the trust fund to the assignee (the facility to which the contract assignment is made) either:
(2) The assignor must complete the transfer within five working days of the effective date of the contract assignment.
(3) The assignor must not make any payments out of a client's trust fund after the effective date of the contract assignment, except as described in this subsection.
(4) The assignor must provide the assignee with a list of the clients who are utilizing the trust fund and their balances.
(5) The assignee must provide the assignor with a receipt for the transfer of these funds. The receipt must contain the following elements:
(A) the date of the transfer of funds. The date the transfer was made is either the:
(i) date the funds were refunded in person; or
(ii) date the certified return receipt shows the refund was mailed;
(B) the name of the assignor;
(C) the amount received by the assignee; and
(D) the check number for the transfer of funds.
(6) The assignor must keep the receipt for audit purposes.
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