California Code of Regulations › Title 22 - Social Security › Division 5 - Licensing and Certification of Health Facilities, Home Health Agencies, Clinics, and Referral Agencies › Chapter 8.5 - Intermediate Care Facilities/Developmentally Disabled-Habilitative › Article 4 - Administration › Section 76931 - Safeguards for Client's Monies and Valuables

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Each facility to which 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 separately and 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, and 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.
(3)
				  Clients' monies shall be kept within the facility in a fireproof safe or
				  deposited in a noninterest bearing demand 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. 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 from a client's account
				  shall only be for the immediate benefit of that particular client. No more than
				  one month's advance payment for care may be received from a client's
				  account.
(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) 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 shall be made available
				  within three banking days. Upon discharge, the client or authorized
				  representative shall be given a detailed list of the client's valuables as
				  required by Section
				  76927(e)(20) and
				  a current copy of the debits and credits of the client's monies.
(8) Within 30 days following the death of a
				  client, except in a coroner or medical examiners 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 descendent'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 Probate Code and a copy of the notice shall be filed with the
				  Department.
(9) Upon a change of
				  ownership of a facility, an audit 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.
(10) Upon closure of a facility, an audit by
				  a public accountant of all client's monies shall be submitted to the Department
				  and all client's monies shall be transferred with the client.
(11) The facility shall have written policies
				  and procedures that protect the financial interest of clients and shall provide
				  for counseling in management of their funds.