California Code of Regulations › Title 22 - Social Security › Division 5 - Licensing and Certification of Health Facilities, Home Health Agencies, Clinics, and Referral Agencies › Chapter 8 - Intermediate Care Facilities for the Developmentally Disabled › Article 4 - Administration › Section 76569 - Safeguards for Clients' Monies and Valuables

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Each facility to whom a client's money or
				  valuables have been entrusted shall comply with the following:
(1) No licensee shall mingle clients' monies
				  or valuables with that of the licensee or the facility. Clients' monies and
				  valuables shall be maintained separate, intact and free from any liability that
				  the licensee incurs in the use of the licensee's or the facility's funds and
				  valuables. The provisions of this section shall not be interpreted to preclude
				  prosecution for the fraudulent appropriation of clients' monies or valuables as
				  theft, as defined by Section
				  484 of the
				  Penal Code.
(2) Each licensee shall
				  maintain adequate safeguards and accurate records of clients' monies and
				  valuables entrusted to the licensee's care, including the maintenance of a
				  detailed inventory.
(A) Records of clients'
				  monies which are maintained as a drawing account shall include a control
				  account for all receipts and expenditures, supporting vouchers and receipts for
				  all expenditures of monies and valuables entrusted to the licensee, an account
				  for each client and supporting vouchers filed in chronological order. Each
				  account shall be kept current with columns for debits, credits and balance. All
				  of these records shall be maintained at the facility for a minimum of three
				  years from the date of transaction. At no time may the balance in a client's
				  drawing account be less than zero.
(B) Records of clients' monies and other
				  valuables entrusted to the licensee for safekeeping shall include a copy of the
				  receipt furnished to the client or to the client's authorized representative.
				  Each item of client property entrusted to the licensee shall be clearly labeled
				  as that client's.
(3)
				  Clients' monies not kept in the facility shall be deposited in a
				  noninterest-bearing trust account in a local bank authorized to do business in
				  California, the deposits of which are insured by the Federal Deposit Insurance
				  Corporation or in a federally insured bank or savings and loan association
				  under a plan approved by the Department. If a facility is operated by a county,
				  such funds may be deposited with the county treasurer. If the facility is
				  operated by the State, such funds may be deposited with the State Treasurer.
				  All banking records related to these funds, including but not limited to
				  deposit slips, checks, canceled checks, statements and check registers, shall
				  be maintained in the facility for a minimum of three years from the date of
				  transaction. Identification as a client trust fund account shall be clearly
				  printed on each client's trust account checks and bank statements.
(4) A separate list shall be maintained for
				  all checks from client accounts which were returned uncashed to the account
				  within the preceding three years.
(5) Expenditures, for a particular client, or
				  group of clients from the client fund account as specified in (3) above may not
				  exceed the drawing rights that client or group of clients have on the account
				  unless written authorization is obtained from all other clients having drawing
				  rights to that account. Expenditures from the client fund account shall only be
				  for the immediate benefit of a particular client or group of clients. No more
				  than one month's advance payment for care may be expended from a client's
				  account at any given time.
(6) A
				  person, firm, partnership, association or corporation which is licensed to
				  operate more than one health facility shall maintain a separate demand trust
				  account as specified in (3) above for each facility. Records relating to these
				  accounts shall be maintained at each facility as specified in (2) above. Client
				  funds shall not be commingled from one facility with another.
(7) When the amount of client's money
				  entrusted to a licensee exceeds $500, all money in excess of $500 shall be
				  deposited in a demand trust account as specified in (3) and (5) above unless a
				  fireproof safe is kept and the licensee desires the protection accorded by
				  Section
				  1860 of the
				  Civil Code, the licensee shall give notice as provided by the
				  section.
(8) Upon discharge of a
				  client, all money and valuables of that client which have been entrusted to the
				  licensee shall be surrendered to the client or authorized representative in
				  exchange for a signed receipt. Money and valuables kept within the facility
				  shall be surrendered upon discharge and those kept in a demand trust account or
				  with the county or State Treasurer shall be made available within three normal
				  banking days. Upon discharge, the client or authorized representative shall be
				  given a detailed list of the client's valuables as required by Section
				  76561(a)(19) and
				  a current copy of the debits and credits of the client's monies.
(9) Within 30 days following the death of a
				  client, except in a coroner or medical examiner case, all money and valuables
				  of that client which have been entrusted to the licensee shall be surrendered
				  to the executor, the administrator or guardian of the client's estate in
				  exchange for a signed receipt, or to any person or that person's authorized
				  representative having the right by law to succeed to the decedent's property,
				  upon presentation of a statement signed under penalty of perjury declaring such
				  person's right to receive the property. Whenever a client without known heirs
				  dies, immediate written notice shall be given by the facility to the public
				  administrator of the county as specified by Section
				  1145 of the California Probabe
				  Code and a copy of the notice shall be filed with the Department.
(10) Upon change of ownership of a facility,
				  a written verification by a public accountant of all client's monies which are
				  being transferred to the custody of the new owners shall be obtained by the new
				  owner in exchange for a signed receipt.
(11) Upon closure of a facility, a written
				  verification by a public accountant of all clients' monies shall be submitted
				  to the Department and all clients' monies shall be transferred with the
				  client.
(12) The facility shall
				  have written policies and procedures that protect the financial interests of
				  clients and shall provide for counseling in management of their
				  funds.