CMS Manual System - Louisiana Department of Health and Hospitals

that an individual gives to the facility for the sake of providing a resident with a
noncovered service (such as a permanent wave). It is expected that in these instances, the
facility will provide a receipt to the gift giver and retain a copy.
―Interest bearing‖ means a rate of return equal to or above the passbook savings rate at
local banking institutions in the area.
Although the requirements are silent about oral requests by residents to have a facility
hold personal funds, under the provisions regarding personal property (§483.10(l)), and
misappropriation of property (§483.13(c)), residents may make oral requests that the
facility temporarily place their funds in a safe place, without authorizing the facility to
manage those funds. The facility has the responsibility to implement written procedures
to prevent the misappropriation of these funds.
If you determine potential problems with funds through interviews, follow-up using the
following procedures as appropriate:
If the facility does not have written authorization to handle resident‘s funds, but is
holding funds for more than a few days, determine if the facility is managing these funds
without written authorization. There must be written authorization for the facility to be in
compliance with this requirement.
To assure that facilities are not using oral requests by residents as a way to avoid
obtaining written authorization to hold, manage, safeguard and account for resident‘s
funds, make sure that:
There is a written declaration by the resident that the funds are being held for
no more than a few days by the facility at the resident‘s request;
These funds are not held for more than a few days; and
The facility provides the resident a receipt for these funds and retains a copy
for its records.
Review the administrative or business file and the bookkeeping accounts of residents
selected for a comprehensive review who have authorized the facility to handle their
personal funds.
Are residents‘ funds over $50.00 ($100.00 for Medicare residents) or, at the
facility‘s option, all resident funds, in an interest bearing account(s)?
What procedure was followed when residents requested their funds?
How long does it take for residents to receive: (a) petty cash allotments; (b)
funds needing to be withdrawn from bank accounts?