Kan. Admin. Regs. § 30-10-11 - Personal needs fund
(a) At the time of
admission, each nursing facility provider shall furnish each resident and the
resident's representative, if any, with a written statement that meets the
following requirements:
(1) Lists all
services provided by the provider, distinguishing between those services
included in the provider's per diem rate and those services not included in the
provider's per diem rate that can be charged to the resident's personal needs
fund;
(2) states that there is no
obligation for the resident to deposit funds with the provider;
(3) describes each resident's right to select
one of the following alternatives for managing the personal needs fund:
(A) The resident or the resident's legal
guardian, if any, may receive, retain, and manage the resident's personal needs
fund;
(B) the resident may apply
to the social security administration to have a representative payee designated
for federal or state benefits to which the resident may be entitled; or
(C) except when paragraph (B) of
this subsection applies, the resident may designate, in writing, another person
to act for the purpose of managing the resident's personal needs fund;
(4) states that any
charge for management of a resident's personal needs fund is included in the
provider's per diem rate;
(5)
states that any late fees, interest, or finance charges shall not be charged to
the resident's personal needs fund for late payment of the resident liability;
(6) states that the provider is
required to accept a resident's personal needs fund to hold, safeguard, and
provide an accounting for it, upon the written authorization of the resident or
representative, or upon appointment of the provider as the resident's
representative payee; and
(7)
states that, if the resident becomes incapable of managing the personal needs
fund and does not have a representative, the provider shall be required to
arrange for the management of the resident's personal funds as provided in
subsection (j).
(b)
(1) The provider shall, upon written
authorization by the resident, accept responsibility for holding, safeguarding,
and accounting for the resident's personal needs fund. The provider may make
arrangements with a federally insured or state-insured banking institution to
provide these services. However, the responsibility for the quality and
accuracy of compliance with the requirements of this regulation shall remain
with the provider. The provider shall not charge the resident for these
services. Routine bank service charges shall be included in the provider's per
diem rate and shall not be charged to the resident. Overdraft charges and other
bank penalties shall not be allowable.
(2) The provider shall maintain current,
written, and individual records of all financial transactions involving each
resident's personal needs fund for which the provider has accepted
responsibility. The records shall include at least the following:
(A) The resident's name;
(B) an identification of the resident's
representative, if any;
(C) the
admission date of the resident;
(D) the date and amount of each deposit and
withdrawal, the name of the person who accepted the withdrawn funds, and the
balance after each transaction;
(E) receipts indicating the purpose for which
any withdrawn funds were spent; and
(F) the resident's earned interest, if any.
(3) The provider shall
provide to each resident reasonable access to the resident's own financial
records.
(4) The provider shall
provide a written statement, at least quarterly, to each resident or
representative. The statement shall include at least the following:
(A) The balance at the beginning of the
statement period;
(B) total
deposits and withdrawals;
(C) the
interest earned, if any; and
(D)
the ending balance.
(c) Commingling prohibited. The provider
shall keep any funds received from a resident for holding, safeguarding, and
accounting separate from the provider's operating funds, activity funds, and
resident council funds and from the funds of any person other than another
resident in that facility.
(d)
Types of accounts; distribution of interest.
(1) Petty cash. The provider may keep up to
$50.00 of a resident's money in a non-interest-bearing account or petty cash
fund.
(2) Interest-bearing
accounts. The provider shall, within 15 days of receipt of the money, deposit
in an interest-bearing account any funds in excess of $50.00 from an individual
resident. The account may be an individual account for the resident or may be
pooled with other resident accounts. If a pooled account is used, each resident
shall be individually identified on the provider's books. The account shall be
in a form that clearly indicates that the provider does not have an ownership
interest in the funds. The account shall be insured under federal or state law.
(3) The interest earned on any
pooled interest-bearing account shall be distributed without reductions in one
of the following ways, at the election of the provider:
(A) Prorated to each resident on an actual
interest-earned basis; or
(B)
prorated to each resident on the basis of the resident's end-of-quarter
balance.
(e)
The provider shall provide the residents with reasonable access to their
personal needs funds. The provider shall, upon request or upon the resident's
transfer or discharge, return to the resident, the legal guardian, or the
representative payee the balance of the resident's personal needs fund for
which the provider has accepted responsibility, and any funds maintained in a
petty cash fund. When a resident's personal needs fund for which the provider
has accepted responsibility is deposited in an account outside the facility,
the provider, upon request or upon the resident's transfer or discharge, shall
within 15 business days return to the resident, the legal guardian, or the
representative payee the balance of those funds.
(f) If a provider is a resident's
representative payee and directly receives monthly benefits to which the
resident is entitled, the provider shall fulfill all of its legal duties as
representative payee.
(g) Duties
on change of provider.
(1) Upon change of
providers, the former provider shall furnish the new provider with a written
account of each resident's personal needs fund to be transferred and shall
obtain a written receipt for those funds from the new provider.
(2) The provider shall give each resident's
representative a written accounting of any personal needs fund held by the
provider before any change of provider occurs.
(3) If a disagreement arises regarding the
accounting provided by the former provider or the new provider, the resident
shall retain all rights and remedies provided under state law.
(h) Upon the death of a resident
who is a recipient of medical assistance, the provider shall take the following
actions:
(1) The provider shall in good faith
determine or attempt to determine within 30 days from the date of death whether
there is a surviving spouse, minor or disabled children, or an executor or
administrator of the resident's estate.
(A)
If there is an executor or an administrator, the provider shall contact the
executor or administrator and convey the monies in the personal needs fund as
the executor or administrator directs.
(B) If there is no executor or administrator
but there is a surviving spouse, the provider shall contact the surviving
spouse and convey the monies in the personal needs fund as that surviving
spouse directs.
(C) If there is no
executor or administrator or surviving spouse, but there are minor or disabled
children, the provider shall contact the guardian or personal representative of
the minor or disabled children or, if appropriate, the adult disabled children
and convey the monies in the personal needs fund as that person directs.
(D) If there is no surviving
spouse, minor or disabled children, or executor or administrator, the provider
shall convey within 30 days the personal needs fund to the estate recovery
unit, which shall be responsible for notifying the appropriate court or
personal representative of the receipt of the monies from the personal needs
fund of the resident.
(2) The provider shall provide the estate
recovery unit with a written accounting of the personal needs fund within 30
days of the resident's death. The accounting shall also be provided to the
executor or administrator of the resident's estate, if any; the surviving
spouse, if any; the guardian or representative of the surviving minor or
disabled children, if any; the personal representative of the resident, if any;
and the resident's next of kin.
(i) The provider shall purchase a surety bond
and submit a report on forms designated by the state licensing agency. The
provider shall give assurance of financial security in an amount equal to or
greater than the sum of all residents' funds managed by the provider at any
time.
(j) If a resident is
incapable of managing the resident's personal needs fund, has no
representative, and is eligible for supplemental security income (SSI), the
provider shall notify the local office of the social security administration
and request that a representative be appointed for that resident. If the
resident is not eligible for SSI, the provider shall refer the resident to the
local agency office, or the provider shall serve as a temporary representative
payee for the resident until the actual appointment of a guardian, conservator,
or representative payee.
(k)
Resident property records.
(1) The provider
shall maintain a current, written record for each resident that includes
written receipts for all personal possessions deposited with the provider by
the resident.
(2) The property
record shall be available to the resident and the resident's representative.
(l) Providers shall
keep all personal needs funds in the state of Kansas.
(m) Personal needs funds shall not be turned
over to any person other than a duly accredited agent or guardian of the
resident. With the consent of the resident, if the resident is able and willing
to give consent, the administrator shall turn over a resident's personal needs
fund to a designated person to purchase a particular item. However, a signed,
itemized, and dated receipt shall be required for deposit in the resident's
personal needs fund envelope or another type of file.
(n) A receipt for each transaction shall be
signed by the resident, legal guardian, conservator, or responsible party.
Recognizing that a legal guardian, conservator, or responsible party is not
necessarily available at the time each transaction is made for or on behalf of
a resident, the provider shall have a procedure that includes a provision for
receipts to be signed on at least a quarterly basis.
(o) The provider shall provide and maintain a
system of accounting for expenditures from the resident's personal needs fund.
This system shall follow generally accepted accounting principles and shall be
subject to audit by representatives of the agency.
(p) Suspension of program payments may be
made if the agency determines that any provider is not in compliance with the
regulations governing personal needs funds. Thirty days before suspending
payment to the provider, written notice shall be sent by the agency to the
provider stating the agency's intent to suspend payments. The notice shall
explain the basis for the agency's determination and shall explain the
necessary corrective action that shall be completed before payments are
released.
(q) This regulation
shall be effective on and after May 1, 2005.
Notes
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