Safeguarding Residents' Cash, Personal Property & Valuables

Understanding Facility Practices

Title 22, §87217(a)

Licensees are not ". . .required to handle residents' cash resources.  [However, if it is deemed and documented through an appraisal, that] a resident is incapable of handling his own cash resources, his cash resource must be safeguarded in accordance with the regulations. . .".    If the Licensee elects to safeguard a resident's cash resources, the Licensee does so pursuant to the stipulations of Title 22, §87217, paraphrased and summarized below:

  • Accurate records shall be kept and adequate safeguards maintained  (§87217(c)
  • Receipts for articles or cash must be given.  (§87217(b)
  • There is to be no commingling with facility funds. [This does not prohibit the Licensee from providing advances or loans to residents from facility money.]  (§87217(e)
  • No facility shall make expenditures from these resources for basic services. [There is an exception with regard to Social Security monies if Licensee is representative payee].  (§87217(f)
  • "No Licensee or employee shall (a) accept appointment as a guardian or conservator of the person and/or estate of any resident, (b) accept any general or special power of attorney for any resident, (c) become substitute payee for any payments made to any resident [unless involving Social Security monies & licensee is representative payee], or (d) become the joint tenant on any account with a resident.*" (§87217(d). 
  • Cash resources entrusted to the Licensee and  kept on the facility premises shall be locked and secured. (§87217(h)
  • Cash resources not kept at the facility must be immediately upon admission be deposited into a bank account separate from the personal and business accounts of the licensee provided that the account title clearly notes that it is residents' money and the resident has access to the money upon demand to the licensee.  (§87217(h)
  • All monetary gifts and any gift exceeding an estimated value of $100, which are given to the licensee by or on behalf of a resident shall be recorded (this does not include friends or relatives of deceased residents).  (§87217(k)
  • Any Licensee who is entrusted to safeguard resident cash resources shall file or have on file with the licensing agency a copy of a surety bond issued by a company to the State of California as principal. (§87216(a)

If a resident needs assistance from a facility with her finances, verify that the RCFE under consideration is bonded and that the amount is sufficient to adequately safeguard the money of the resident.  CCLD verifies that the bond held is sufficient , however there is no substitute for performing your own due diligence. 

*Except as provided in approved agreements with continuing care facilities.

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