Disability Services - Rights and Accountability - Managment of Money Policy

8/13/2019 Disability Services - Rights and Accountability - Managment of Money Policy

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Disability Services

Rights and accountability: Management of money policy


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Disability Services

Rights and accountability: Management of money policy

April 2010


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Rights and accountability: Management of money policy (April 2010) iii

Context statement 1

Definitions under the Act 1Other definitions/terms 1

Application of policy 2

Objective 2

Key policy principles 2

SECTION A: MANAGEMENT OF MONEY ALL DISABILITY SERVICE PROVIDERS 5

SECTION B: MANAGEMENT OF MONEY RESIDENTIAL SERVICES ONLY 6

B1 Appointment as a guardian and or financial administrator residential service 6

B2 Residents money 8

B3 Maximum amount of cash being held on behalf of a resident 9

B4 Residents money Inclusions and exclusions 10

B5 Accountability for residents funds 10

B6 Provision of end-of-month financial statement and access to records 11

B7 Authorised access to records 11

B8 Investment of trust funds 12

B9 Limit on resident funds held in trust 12B10 Trust money must be paid when person leaves 13

B11 Residents trust fund Departmental-managed residential services 13

Related policies, procedures and legislation 14

Contacts 14

Approved 14

Contents


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iv Rights and accountability: Management of money policy (April 2010)


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Rights and accountability: Management of money policy (April 2010) 1

Context statement

The Disability Act 2006(the Act) was passed by Parliament on 4 May 2006 and became fullyoperational from 1 July 2007.

The Act provides the framework for a whole-of-government and whole-of-community approach

to enable people with a disability to actively participate in the life of the community. The Act is

guided by the principles of human rights and citizenship and provides substantial reform to the

law for people with a disability in Victoria.

Definitions under the Act

Community residential unitmeans a residential service that is declared to be a community

residential unit under Section 64.

(Please note: in practice this means a residential service in a group home that is declared a

community residential unit under Section 64)

Departmentmeans the Department of Human Services.

Disability service providermeans:

a. Department of Human Services regional management and staff; or

b. a person or body registered on the register of disability service providers.

Disability servicemeans a service provided by a disability service provider specifically to

support people with a disability.

Public Advocatemeans the Public Advocate appointed under Section 12 of the Guardianship

and Administration Act 1986.

Resident means a person who receives disability services at a residential service.

Residents administratormeans the residents attorney appointed under an enduring power of

attorney to administer the residents property or a person appointed by a court or tribunal as the

administrator of the residents property.

Residents guardianmeans the residents guardian appointed under the Guardianship and

Administration Act or appointed by a court and, if the resident is a child, includes the childs

guardian whether or not they are the childs natural parent.

Residential servicemeans residential accommodation with rostered staff provided by, or on

behalf of, a disability service provider for the purpose of providing disability services to:a. one or more residents in a community residential unit; or

b. one or more residents in a residential service other than a community residential unit.

Residents Trust Fundmeans the Residents Trust Fund continued under Section 91.

Secretarymeans the Secretary to the Department of Human Services.

Other definitions/terms

Authorised representativein the role of a financial administrator means a person who is

appointed under an enduring power of attorney (financial) to administer the persons property or

a person appointed by a court or tribunal, such as the Victorian Civil and Administrative Tribunal(VCAT), as the administrator of the persons financial and legal affairs.

Nominated representativemeans a person who is the recognised signatory to the residents

Centrelink bank account or who has been nominated to provide and be responsible for financial

management support under the financial plan of the person with a disability.


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2 Rights and accountability: Management of money policy (April 2010)

Group homeis a residential facility where shared supported accommodation is provided and

supports are linked to the funded residential service provided to one or more people with a

disability on a long-term basis by staff employed by the disability service provider.Penalty unitsthe Monetary Units Act 2004 governs the indexation of fees and fines set by

various departments. Fees and fines are automatically indexed through the value of a fee or fine

unit being fixed by an annual rate, and applied from 1 July each year. When fixing the annual

rate, the Treasurer takes into account the rate of inflation and the cost of delivering government

services. The value of the fee or fine unit is subsequently published in the Government Gazette

and major newspapers.

VCATis the Victorian Civil and Administrative Tribunal that can appoint guardians and

administrators for persons with a disability over the age of 18 years. VCAT may appoint family

members or the Public Advocate as guardian. VCAT may appoint family members or companies

such as the State Trustees as administrators.

Application of policy

This policy applies to both department-managed and funded services provided by community

service organizations (CSOs).

Objective

The objective of this policy is to give effect to the implementation of Part 6 of the Act Rights

and accountability, Division 2 Provisions relating to the management of money. This policy

will provide disability service providers and their staff with an understanding of their roles and

responsibilities in relation to the management of money for people with a disability living in

department-managed or funded residential services provided by registered disability service

providers. The same requirements apply to any other support services that involve handling of

program participants funds.

The key purpose of this part of the Act is to create specific rights for persons receiving supports,

particularly those residing in residential services, and to impose specific obligations on registered

disability service providers who are involved in the handling and management of money belonging

to people with a disability.

Key policy principles

Fundamental to this policy is the departments desire to support improvements in the

management of residents financial affairs. Provision of residential services necessitates the

frequent handling of significant amounts of residents funds. Key considerations in meeting this

responsibility include:

Financial planning

Financial planning should consider current and future circumstances and incorporate estate

planning for the individual. This is the responsibility of a financial administrator.

Development of a clear financial plan for accommodation support only to guide the application

of a residents finances for discretionary purposes and to meet their financial obligationsincluding the payment of fees and charges is a part of the financial planning process, which

involves the disability service providers input. The residents financial plan for accommodation

support should be reviewed on a regular basis between staff, the resident and/or the guardian

or administrator to ensure currency of circumstances and directions as well as the effectiveness

of financial management arrangements. This should occur at least annually.


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Independence and choice

People with a disability receiving funded support services or living in residential services should

be supported to manage their own money as far as they are able. Where appropriate, suchsupport may be provided by families or formally appointed administrators.

In undertaking these responsibilities it is important that the parties act in the best interests

of the individual, maximize the individuals involvement in decisions, show due regard for

confidentiality of information, maintain accurate records of information and are accountable for

directions made.

Disability service providers must not act as financial administrators for people with a disability

for whom they provide support. Restricting the role of disability service providers in the

direction and control of money safeguards individuals from potential conflicts of interest and

perceptions of influence.

Other safeguards available include the appointment of a formal administrator by the VictorianCivil and Administrative Tribunal (VCAT). Advice should be sought from the Office of the Public

Advocate before making an application to VCAT.

The department recognises that efforts to enhance financial management practices will occur

over time and the department and CSOs will actively support families, carers and guardians to

pursue this, being respectful of the important role that families and carers play in supporting

residents. Where a person with a disability lacks the capacity to make informed decisions

regarding their financial affairs, the department will accept instructions related to the disability

support financial plan from a formally appointed administrator or the nominated representative

of the person with a disability.

Accountability, transparency and confidentiality

Clear information, records, processes and systems need to be in place to account for

the expenditure of money held in trust for a person with a disability. Decisions about the

expenditure of funds need to flow from the financial plan with authorisation by the nominated

representative or the formally appointed administrator, if any, on the application of funds.

Privacy

People with a disability are to be afforded the same rights of privacy in financial matters as

other members of the community.

Provision of information

The provision of any advice, notification or information in relation to these guidelines should be

undertaken in line with the requirements of Part 2 Objectives and principles of the Act, S7,

Provision of advice, notification or information under this Act.

1. The contents of any advice, notice or information given or provided to a person with a disability

under the Act must be explained by the person giving the advice, notice or information

to the maximum extent possible to the person with a disability in the language, mode of

communication and in terms that the person is most likely to understand.

2. An explanation given under (1) must, where reasonable, be given both orally and in writing.

3. If a person is incapable of reading and understanding the information provided, the disability

service provider mustuse reasonable endeavours to convey the information to the person in

the language, mode of communication or in terms that the person is most likely to understand.

4. The disability service provider may give a copy of the advice, notice or information to a familymember, guardian, advocate or other person chosen by the person with a disability. Where

no person is chosen, the information may be given to a person the disability service provider

considers can assist the person with a disability. The person must not be employed or be a

representative of the disability service provider.


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It is important that families are supported to participate in the life of the individual in order to

foster positive and cooperative partnerships between family and disability service providers.

This is of particular importance with respect to assisting the individual to understand their rights,responsibilities and support available to them.

It is important, however, that all parties are mindful of respecting the wishes of the individual

accessing services.

Victorian Charter of Human Rights

This policy has been developed to support the principles and requirements of the Act and The

Victorian Charter of Human Rights and Responsibilities.

This document is presented in two sections:

Section A:Applies to all service provision.

Section B:Applies only to residential services.


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S90 A disability service provider, or a person employed by a disability service provider must not

act as a financial administrator for a person with a disability provided with disability services by that

disability service provider.Penalty: 60 penalty units

Policy application:

1. Restricting the role of disability service providers in the direction and control of money

safeguards people with a disability, employees and the service provider from potential conflicts

of interest and perceptions of influence that could occur.

2. The role of financial management, where one is required due to a persons lack of capacity

to make informed decisions about their finances, may be undertaken by families and friends

or significant others, or an authorised representative through formal appointment as an

administrator for a person with a disability. Only one of these individuals will have the primary

responsibility and accountability as the nominated representative if there is no formallyappointed administrator for the person.

Further information on the appointment of financial administrators can be obtained from the

Office of the Public Advocate or the Victorian Civil and Administrative Tribunal.

3. Wherever possible, a person with a disability must make his or her own financial decisions.

Staff should provide assistance only in a support role, not a decision-making role. This support

must be provided in the context of the type of disability support service provided, for example,

accommodation support, community access, day programs and respite. Staff should not

provide advice outside areas of their responsibilities, for example, investment advice.

Exceptions:

4. S90 (2) allows the Secretary to provide such a function where it is exercised under the powerof another Act.

5. Refer to B1 of this document in respect of specific limited exceptions for a residential service.

Section A: Management of money

all disability service providers


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Section B: Management of money

Residential services only1

The following legislative requirements are in addition to Section A for all residential services that

are provided by a registered disability service provider and the Secretary.

B1 Appointment as a guardian and or financial administrator

residential service

S93(6) The disability service provider or a person employed by the disability service provider must

not accept an appointment as a residents guardian or residents administrator in respect of any

resident of the residential service.

Penalty: 60 penalty units

The objective of restricting disability service providers and their staff from performing functions

as a guardian or financial administrator in a residential service is to safeguard residents and

staff from potential conflicts of interest and perceptions of influence. The separation of these

two responsibilities and functions is paramount to achieving this objective and that of providingprotection against a power or influence relationship between a resident and staff-carer arising

from a service provision context.

Policy application

1. A disability service provider or an employee should not accept appointment as a residents

guardian or residents administrator in respect of any resident of the residential service from

1 July 2007 when the Act came into effect.

2. This section does not apply to formal appointments of guardians or administrators prior to the

commencement of the Act. Guardians or administrators appointed before 1 July 2007 are not

required to relinquish their existing appointments.

3. The disability service provider must ensure that there are procedures in place for all employees

and members of boards or committees of management to be aware of the requirements under

this section of the Act.

4. Where a member of a board or committee of management is involved in a decision-making

process that might impact upon a resident in the service who is a family member, the board

member must declare, at the outset, any potential risk of conflict of duties and abstain from

participation in that process. The board or committee must satisfy itself that there is no direct

conflict of duties before allowing the member to contribute to the decision-making process,

where appropriate.

5. Employees have the responsibility of advising management of any potential conflict of interest.

6. Residents under 18 years old:This section applies only to residents under 18 years.

The department acknowledges that people under 18 years of age with a disability are best

supported within family environments. Where this is not possible, a small number of people

under the age of 18 years may live in a residential service.

6.1 Children between the ages of 15 and 18 years have the right to make their own decisions

without parental consent. Where parents are not involved in the day-to-day care of their

child less than 17 years but wish to act as guardians and or financial representatives in

making financial decisions for them, contact is to be made with the Regional Intake Team

1 The provision of outreach services does not fall under the definition of a residential service within the context of

the Act. Section B is, therefore, not applicable to outreach services.For department-managed services, this means that the residents trust fund and the client expenditure recordingsystem must not be used to manage funds for individuals receiving outreach support.

All support providers should consider the management of an individuals funds within the service planning contextmindful of the individuals needs, financial management skills and the ongoing development of these skills. Thisshould include identifying situations where staff may be required to handle money on an individuals behalf andimplementing an appropriate level of accountability that is not administratively burdensome. Handling money mayincorporate activities such as using cash or having access to bank account details, and account access cards.


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Leader, Child Protection to discuss the issue. Departmental staff or disability service

providers must not assume the role of guardian or financial representative.

6.2 Residential services managers, including departmental disability accommodation servicesmanagers, can make financial decisions on behalf of these residents only when these

decisions are funded from sources other than residents money, for example, from the

residential services operating budget.

6.3 When residents turn 16 and are entitled to apply for a disability support pension, staff

should assist them in lodging an application to Centrelink and opening a private bank

account. Staff must not be a signatory to the account.

6.4 Where the resident lacks the capacity to provide informed consent or to lodge an

application themselves and there is no other external person, such as a family member,

known to the resident who is prepared to undertake this function, management can lodge

an application directly with Centrelink, on the residents behalf. A trust account in thename of the resident should be set up either with a bank or as a subsidiary account within

the residents trust fund held by the organisation. Centrelink payments are to be credited

to the residents trust account.

6.5 Consistent with the principles of the Act, and the right as well as responsibility of residents

to pay the residential charge, the service provider can advise Centrelink to deduct a

specified amount from the support pension towards meeting the board and lodging costs

of the resident (refer to the Centrelink rent deduction scheme). This is only appropriate

where the costs are not met elsewhere (for example, financial support provided by the

Office of Children).

6.6 The specified amount is to be based on the same board and lodging fee, or the sum of

the rent component and the agreed housekeeping contribution that is applicable to theother residents in the same residential service. The amount can also include additional

costs to cover any other program costs (for example, day program, education fees),

including personal expenditure for personal items and community access that have to be

met on behalf of the resident. However, the departments policy states that the specified

deduction amount must not exceed 75 per cent of the disability support pension,

and 100 per cent of commonwealth rent assistance. Note that the provider has the

responsibility to ensure that these funds are applied to cover all costs incurred on behalf

of the resident.

6.7 Consistent with good practice, transparency and accountability principles there will be

two different accounts held in trust in the name of the resident:

a. A Residential charge deduction account this account will receive the rent deduction

paid by Centrelink. All outgoings are to be paid from this account, with proper

authorisation by management and documentation for review or audit purposes. The

residual balance in this account after deduction for board and lodging is for the purpose

of meeting the personal expenditure needs of the resident.

Where funds are insufficient to meet the financial needs of the resident, a reduced

residential charge is to be applied where necessary. Note that any surplus funds from

this account that have accumulated until the person turns 18 should be transferred to

the residents account and funds handed over to a formally-appointed administrator

(see below).

b. A resident account to hold Centrelink payments these funds will not be accessible

until the person turns 18 and a formal administrator is appointed to make financial

decisions on behalf of the resident. The disability service provider is responsible for

providing all transaction details to the formal administrator.


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6.8 All residents, irrespective of their age, who have the capacity and ability to make financial

decisions have the right to make decisions about the use of their own money. Staff must

provide appropriate support and guidance where requested but cannot make financialdecisions on their behalf. This is a right of the individual and applies even when staff have

a different view regarding the residents judgement on the use of funds.

7. All employees are expected to raise issues or concerns regarding conflict of interest between

residents and parents, administrators, and nominated representatives. This includes bringing

any demonstrated risks of financial neglect, exploitation or abuse of a position of trust to

managements attention. Assistance and support should be provided to the parties concerned.

If unresolved, a request for a review of the current financial arrangements should be made to

VCAT under the Guardianship and Administration Act 1986. Advice should be sought from the

Office of the Public Advocate in these circumstances.

B2 Residents moneyS93(1) Disability service providers may manage or control an amount of money that is not greater

than theprescribed amountonly if the disability service provider has written consent to do so from

the resident or the residents guardian or the residents administrator.

The objective of this section is to ensure adequate protection to the resident and the disability

service provider when the resident lacks financial decision-making capacity regarding their funds

and assets. Residents have varying capacity to make decisions at various times and in different

situations. Where residents are capable of handling their own funds, they should operate and

manage their own private bank accounts. It is expected that they have full access to their pension

and other income. Wherever possible a resident must make his or her own financial decisions. If

assistance is needed to do this, that should be provided. This role can be undertaken by families,guardians and administrators.

Policy application

1. Management or control of a residents money by disability service providers for the purpose of

this section does not include the agreed financial plan for the accommodation support needs

of the resident. This plan covers both the housekeeping provision and personal needs of the

resident.

Management of money should be linked to the support planning process for a resident.

Consideration must be given to identifying the residents capacity to manage their own money.

If the resident needs support to manage their money, the individuals support planning process

must determine any actions to be undertaken by the disability service provider on behalf of theresident.

A financial plan to provide for the day-to-day accommodation needs of the resident should be

prepared in consultation with the resident and their family, financial administrator or support

network.

This is an open collaborative financial planning process that is conducted in the best interest of

the resident, during which a nominated representative, other than the disability provider or staff

member, is agreed as the most appropriate person to provide financial management support to

the resident.

The nominated representative needs to make funds available to the disability service provider

and to authorise the allocation of a residents funds in accordance with the needs of theindividual, as agreed in the financial plan. The nominated representative is usually a formally-

appointed financial administrator where a formal appointment is already in place, or may be the

person who is the signatory to the residents Centrelink bank account.


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2. Disability service providers are required to manage and account for these funds in a trustee

capacity consistent with the authorised financial plan (refer to B5). This is only applicable

where these funds are provided to meet planned household costs and personal items outsidethe residential charge.

3. Employees must not accept any delegations to make financial decisions on behalf of a

resident in any transaction that cannot be reasonably considered as within the scope of an

accommodation support and community access role. In this situation, a disability service

provider or employee can only support a request if specific instruction in writing is provided

from the nominated representative. This support does not include the handling of funds for

these instructions unless the nominated representative is a formally appointed administrator.

Examples of these may include:

Ad hoc significant requests outside the agreed financial plan initiated by the administrator for

the benefit of the resident, for example, a special holiday trip or purchase of an entertainment

system. In these situations, where required, staff can provide assistance and support to the

resident to choose the preferred product and supplier. Significant refers to the amount of

expenditure involved and is relative to the overall agreed financial plan and the available

funds held in trust. The nominated representative will be responsible for making direct

payments on behalf of residents to the selected supplier.

Requests for transfer of funds or property of a resident held in trust to another party, other

than the nominated representative.

4. Under the duty-of-care principle, staff should be supported by management to prevent harm

to residents. Harm is defined to include neglect, abuse and exploitation. This is extended

to the financial affairs of the person. Where there is evidence of this risk, after appropriate

consultations and reasonable follow-ups with nominated representatives or administratorsto resolve matters of concern, the disability service provider is to initiate a review by VCAT of

current administration arrangements. Advice should be sought from the Office of the Public

Advocate in relation to each case.

B3 Maximum amount of cash being held on behalf of a resident

93(2) Where the amount of money of a resident being held by a disability service provider under

(93)(1) exceeds the prescribed amount, and funds will not be spent within 14 days, the funds

must be held in trust on behalf of the resident and deposited in a trust account until the funds are

required.

The objective of this clause is to set a reasonable monetary limit to minimise the risks to staff

of holding and handling unnecessary large amounts of cash on the premises and to safeguard

residents funds.

Policy application

1. Prescribed amount:A $250 limit is set under regulation.

2. The Act requires any funds held in excess of this prescribed amount, that are not needed within

14 days to meet the financial needs of the resident, to be deposited into a trust account.

These funds are for meeting residents daily personal needs, community access, respite or

leisure activities over a fortnight whilst maximising the residents control over their finances

overall.

Money received from residents for rent or for board and lodging is not part of this prescribed

amount.

3. Disability service providers must ensure processes are in place to identify funds that will not be

used within the 14-day period that are over and above the prescribed amount.


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4. Disability service providers must ensure that they establish an appropriate trust account

to hold these funds. A trust account can be any account that is kept separate from other

operating accounts of the organisation and must be linked to the purpose and identities ofthe beneficiaries, that is the residents. Resident funds can be held in one trust account but an

individuals entitlement under a subsidiary ledger account must be set up.

B4 Residents money Inclusions and exclusions

S93(7) Money of a resident does not include money:

a. payable to a disability service provider in relation to services provided by the service provider; or

b. paid to the Secretary to purchase a disability service.

Policy application

Money of a resident does not include:

a. Money for rent, rent and services or a combined board and lodging charge, where payment is

made in respect of services received from the service provider.

b. Housekeeping and personal needs provision identified in the authorised financial plan for

accommodation support.

c. Any fee-for-service payment to the service provider in addition to all of the above.

B5 Accountability for residents funds

S93(3) Where a disability service provider manages or controls the money of a resident, they must:

a. Keep a copy of the consent for that management or control.

b. Keep the money of the resident in a secure place.

c. Maintain an accurate and up-to-date financial management system that provides a record of:

the money of the resident

the receipt and expenditure by the disability service provider of the money

any investment of the money.

d. All records referred to above must individually itemise each transaction made on behalf of the

resident.


Policy application

This applies to all funds held on behalf of residents, irrespective of their inclusion in the definition

of resident money for the purpose of various sections of this division of the Act. For instance,funds may be received in advance on behalf of a resident for subsequent disbursement for

payment of rent, board and lodging, housekeeping contributions and so on, to the provider when

due. This is the case with departmental managed services.

These funds are defined as outside resident money but until they are payable on the due date

to the provider, they are received in trust as residents money. This does not apply to payments

received from residents who may choose to pay their residential charges ahead of the due date.

1. Disability service providers must have processes in place to meet the above requirements of

S93(3) and ensure that staff are aware of those processes.

2. Residents funds held in trust should be subject to an annual audit of the financial accounts of

the organisation.

3. Residents must be advised upfront of any applicable fees and charges that are deducted from

their account and the basis for these charges. This should be included in the organisations fees

policy.


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B6 Provision of end-of-month financial statement and access

to records

S93(4) Disability service providers who manage or control the money of a resident must provide

a statement at the end of each month to the resident or the residents guardian or the residents

administrator specifying:

1. the current balance

2. any income received and expenditure incurred on behalf of the resident since the previous

statement

3. the current status of any liabilities incurred on behalf of the resident.


Policy application

1. All disability service providers who manage or control the money of a resident must provide anend-of-month financial statement to the resident, or the residents guardian or the residents

administrator or nominated representative, within a reasonable time period. This timeframe

will depend upon the accounting processes, including reconciliation of accounts before the

generation of financial statements. For example, with department-managed services, the

statement is issued by the 20th of the month following the month the statement refers to.

2. Disability service providers should advise when this end-of-month statement would normally

be available.

3. The financial information is confidential and must not be provided to any person who has not

been authorised by the resident or the residents administrator or nominated representative.

4. If the statement is given to the resident, management needs to take reasonable steps to ensurethat it is provided in a format and mode of communication that the resident is most likely to

understand (refer to Section 7 of the Act regarding provider obligations in the provision of

advice, notification or information under the Act).

5. Disability service providers need to ensure responsiveness for the timely provision of financial

details on current resident account balance and details of recent transactions in response to

the ad hoc requirements of residents or their nominated representative.

B7 Authorised access to records

93(4) The disability service provider must, upon request, give access to the residents financial

records held by the disability service provider to the resident or the residents guardian or theresidents administrator.


Policy application

1. All disability service providers must establish a culture that supports making financial

records accessible and introduce a means of doing so in a way that protects the privacy and

confidentiality of other residents records.

2. Disability service providers must provide access to the relevant source documents and

financial records within a reasonable period in response to a request. Depending on the nature

of the request, it may need to be made in writing to the disability service provider.

3. Quite often guardians or nominated representatives request details of household expenses and

other costs that are recouped from residents. Where these expenditures are not part of the

residential charge, access to these records should be made available when requested.


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B8 Investment of trust funds

S94 The Secretary and disability service provider may invest any money held on behalf of a resident

that is not immediately required for use by the resident. Money may be invested in any manner inwhich money may be invested under the Trustee Act 1958.

Policy application

1. Residents funds can be pooled for investment purposes. Management is responsible for

ensuring that adequate resident funds are available to meet cash flow requirements.

2. Investments must be consistent with the requirements of the Trustee Act 1958. Please refer to

Part 1-Investments of the Trustee Act.

3. The Secretary and the disability service provider must have a financial system that tracks and

manages the investment returns of these funds. This includes a transparent methodology for

the calculation of an equitable share of investment income earned and credited back to theindividual residents trust account. This should be documented in the providers policy on the

management of residents funds and advice provided to residents, guardians and nominated

representatives.

4. A disability service provider may charge an administration fee for maintaining the trust account.

Any fees and charges need to be transparent and reasonable. Fees and charges should not

exceed financial industry charges for equivalent financial service provision. Residents must be

advised of these charges before they are automatically deducted from their account. These

fees and charges should be included in the providers policy for management of residents

funds.

B9 Limit on resident funds held in trustS95 The amount standing to the credit of a resident in that persons trust account must not exceed

the prescribed amount in regulation, which is $5,000. If the amount exceeds the prescribed

amount, the Secretary or the disability service provider must arrange for the person, or the persons

representative, to be advised to invest the money in an appropriate manner.

Policy application

1. The disability service provider must ensure that there are adequate processes and financial

systems in place to identify when funds held are in excess of the prescribed amount.

2. Processes should also be developed to allow the person or their administrator or guardian to

be notified of funds above the prescribed amount. These should include arrangements forthese funds to be returned to allow the resident, administrator or guardian to invest them in an

appropriate manner.

3. A disability service provider may choose to adopt a lower maximum threshold. As an example,

it is recommended department-managed services take action when funds reach $3,000 to

ensure they do not accrue to the $5,000 regulated amount.


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B10 Trust money must be paid when person leaves

S96 When a resident ceases to reside in a residential service, the Secretary or disability service

provider, as applicable, must pay all money standing to the credit of the individual in the residentstrust fund or any trust account to the person or their representative.

Policy application

The Secretary or the disability service provider must ensure adequate processes are in place to

identify funds attributable to an individual and reconcile all records in relation to that individual to

allow the return of funds to the resident, administrator or guardian within a reasonable period of

time of departure, not exceeding 20 working days.

B11 Residents trust fund Departmental-managed residential

services2

S91(1) The residents trust fund (RTF) established under Section 45 of the Intellectually Disabled

Persons Services Act 1986 is continued under the Act.

S92 Funds attributable to an individual, including all income earned, must be paid into the

residents trust fund as soon as practicable.

Policy application

All residential services managed by the department will pay all relevant funds into the residents

trust fund. Management is to ensure that departmental staff involved with residents money are

aware of, and comply with, the requirements of all sections of this part of the Act.

2 The provision of outreach services does not fall under the definition of a residential service within the context of

the Act. Section B is, therefore, not applicable to outreach services.For department-managed services, this means that the residents trust fund and the client expenditure recordingsystem must not be used to manage funds for individuals receiving outreach support.

All support providers should consider the management of an individuals funds within the service planning contextmindful of the individuals needs, financial management skills and the ongoing development of these skills. Thisshould include identifying situations where staff may be required to handle money on an individuals behalf andimplementing an appropriate level of accountability that is not administratively burdensome. Handling money mayincorporate activities such as using cash or having access to bank account details, and account access cards.


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Related policies, procedures and legislation

Related policies and procedures and legislation for strengthening specific rights for personsresiding in residential services in relation to the management of money include:

Charter of Human Rights and Responsibility, 2006

Financial Management Act 1994

Department of Treasury and Finance : Fact Sheet, Automatic Indexing of Fees and Fines

Guardianship and Administration Act 1986

Victorian Civil and Administrative Tribunal Act 1998

Trustee Act 1958

Undue Financial Hardship Guidelines

Department of Human Services Information Sheet No 18: Management of money policy

For residents, guardians and administrators

Client Expenditure Recording System (CERS) (Department of Human Services Disability

Services policy)

Disability Services Planning Policy

Quality Framework for Disability Services in Victoria

Disability Services Division Policy and Funding Plan

Contacts

Should there be any questions regarding this policy, please contact:

The Legislation TeamDisability Services Division

Department of Human Services

8/50 Lonsdale Street, Melbourne, VIC, 3000

email: [email protected]

Or, for further information and advice contact:

Your regional Partnership and Services Advisor (PASA) for community service organisations.

And for department-managed residential services, contact:

Regional CERS Officers; or

Divisional Client Funds Management Team.

Approved

Director, Planning and Resource Management


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Documents

Disability Services - Rights and Accountability - Managment of Money Policy