A. The facility must establish and maintain a system that assures a full, complete and separate accounting of each resident's funds entrusted to the facility. An acceptable accounting system is described below.

B. Resident funds cannot be commingled with facility funds or with the funds of any person other than another resident.

C. The facility must deposit any Medicaid resident's personal funds in excess of $50 in an interest bearing account that is separate from any of the facility's operating accounts, and that credits all interest earned on resident's funds to that account. (In pooled accounts, there must be a separate accounting for each resident's share.)

D. Quarterly statements must be provided to each resident indicating account activity.

E. The facility is required to notify each resident that receives Medicaid benefits:

F. Facility will convey funds upon the death of a resident in the manner prescribed on Page 5-5.

G. Personal funds cannot be charged for any item or service which payment is made under Medicaid or Medicare.

H. Individuals handling personal funds must be bonded.

I. The facility will be responsible for any fund shortages or failure to document account transactions by failing to collect or retain appropriate receipts or journals.

J. Provide upon admission a BENEFICIARY DESIGNATION FORM (Page 5-8) that shall only be completed by the resident at the time of admission, identifying to whom the resident trust fund will be distributed in the event of death. The form must be completed in the presence of two witnesses who shall affix their signatures to the form as witnesses. If completed, the Beneficiary Designation Form shall remain permanently in the resident's file. No licensee, owner, administrator, employee, or representative of a long term facility shall be named as a beneficiary to such funds.