Monies Held in Trust

Effective date: September 30, 2011

Revised January 2018

Relevant Legislation:

Not applicable to this policy.

Intent:

To ensure that staff correctly administer and account for monies held in trust.

Definitions:

Monies held in trust are defined as monies received from a tenant, family member, an agency or trustee on behalf of the tenant. The monies are held by LOFT for the tenant. The tenant, family member, or trustee determines how the monies are to be spent.

Policy:

LOFT performs only a custodian role for trust monies. The highest degree of care is to be exercised when administering and accounting for trust monies.

Clients are to receive their money in a timely way and this money should be spent in the areas they (or their family or trustee) have identified in support of their goal plan and plan of care.

The money held in trust is not to include interest earned during the period in which the monies were held.

1. Records of Monies in Trust

a)      A log will be maintained for each tenant who has given monies in trust to LOFT Community Services.

b)      The log will contain the date, time and the amount of receipts and withdrawals including the tenant’s signature.

c)      There should be a column for the beginning balance and ending balance.

d)     There should be a summary page listing all the tenants’ cash on hand.

2. Monies provided by family members or trustees

At times, LOFT staff may receive funds from family members or trustees on behalf of the tenant. The procedures in note 1 apply and the following should be implemented:

a)      An entry in the log should be made in the tenant log page stating the amount. If possible, a tenant signature should be obtained.

If the family does not want the tenant to know about the monies in trust a letter should be obtained from the family member stating these instructions.  The program director must sign in the tenant’s place (assuming that they are not the person making the purchases for the tenant).

b)      On the date that the monies are given, a note should be added stating “Refer to the letter dated”. The letter should be put in the resident’s file.

c)      If the instructions provided in the letter state that the monies are to be used for specific expenses, all withdrawals should include a note stating the expense and where it was purchased (name of vendor). The invoice is to be placed in the tenant’s file

d)     On a bi-annual basis, a letter (or report) should be sent to the family member or trustee. (However, management should take into account the family member’s wishes and the trustee’s rules and regulations.) Copies of the receipts are to be included with the letter. In the body of the letter a note should be made stating:

i. The original amount given.

ii. List of expenses with amounts.

iii. The remaining unused amount.

e)      When cheques are received from the Office of the Public Guardian and Trustee (PG&T), staff are to ensure that:

      i.      Amounts do not exceed two months of the resident’s PG&T payments as it is the intention of the trustee that the monies are used for specific purposes i.e. clothing, furnishings, cigarettes etc. and not for savings.

ii.      If amount exceed two months of the resident’s PG&T payments due to the client’s goal plan or plan of care, it should be done with the program director’s approval.

iii.      If the amount exceeds two months total of their (usual) payments, staff are to contact PG & T to have the cheques put on hold until the balance is reduced.

iv.      If the resident is hospitalized for an extended period of time that will put them over their two month balance, staffs are to call to have the PG&T put the cheques on hold.

3. Computerized Log

If a computerized log is used please consult with the finance department to ensure proper set up of the log and that adequate internal controls have been setup.

Each spreadsheet would contain the name of the tenant. All of the spreadsheets would add up to the summary sheet.

A pre numbered receipt book should be purchased. The book should contain 2 copies (one is usually white and the other is yellow).

If a tenant withdraws or adds monies to their fund:

a)      Their spreadsheet should be updated.

b)      All withdrawals or increase to the fund should be signed by the tenant in the receipt book. The receipt number should be referenced in the spreadsheet.

The white copy may be given to the tenant for their records or placed in their file, whichever is convenient for the tenant. The yellow copy is to remain in the receipt book.

c)      If the monies in reference to a family member or trustee.

   i.            Increases are to be recorded in the spreadsheet, referencing the date of the letter.

  ii.            Decreases are to be recorded in the spreadsheet, referencing the vendor name and nature of purchase.

 iii.            The invoice should be placed in the tenant’s file.

d)     In the event a tenant refuses to sign a receipt, please see note 5 of these procedures. Instead of signing a log book, the program directors should print out the spreadsheet and sign the spreadsheet. The signed spreadsheet should be placed in the tenant’s folder.

e)      The spreadsheet with a summary of the tenant information should be printed and put in their file at least once a year

4. Location of Tenant Files, receipt book and the money

a)      Tenant’s files should be kept in a secured filing cabinet. The files should include a copy of any invoices that were paid on the tenant’s behalf, letters sent to trustees or family members, summary of their log sheets and any other relevant information.

b)      Receipts books should be kept in a locked and secure location. Once a book is full it should be filed. None of the books should be thrown unless it is approved by the Finance Department.

c)      Monies held in trust should be kept in a locked box or safe. The locked box or safe should be kept in a locked and secure office.

5. Tenant refuses to sign

There may be times when the tenant requests a draw from their fund but they are unwilling to sign for the withdrawal. If a tenant is not co-operative or upset, the funds should be given to them in the presence of two staff members. The 2nd staff member will sign in the tenant’s place. A brief note is to be added in the Note section stating why the tenant did not sign for the withdrawal.

The program director is to be notified of the incident. The program director should investigate the matter and determine if the funds were given. Once they are satisfied they should print out the spreadsheet and sign the spreadsheet. The signed spreadsheet should be placed in the tenant’s folders.

6. Tenant Hospitalization

If a tenant is hospitalized or not returning to the site in the immediate future, the monies are to be deposited in the LOFT bank account. The monies are to be recorded as payable to the tenant.

Please note, in situations where the resident is receiving PG&T funds, if the amount exceed two months of their monthly payments, staffs are to call to have the PG&T put the cheques on hold.

7. Review and Reconciliations

a)      The program director or designated staff member will reconcile the total monies held in trust to the log summary on a monthly basis.

b)      The program director will periodically review individual logs for tenant signatures, unusual notes, to determine if the family’s request is being followed, etc. These reviews are to occur at least two times a year and at least 10% of the tenants should be reviewed.

c)      The program director will provide the summary log page (listing all tenants’ names and the balance owing to them) on a quarterly basis to the Finance department.

8. Balance on hand

Each program serves different size populations and has different tenant needs.   Recognizing this information, a limit has been set for each site that holds monies in trust.

When the Finance department receives a summary log, they will review it and any concerns will be brought up with the program director and/or the senior program director.

Each quarter, a summary of the total amount held in trust by a program will be presented to the senior directors with a list of tenants who have balances of over $1,000 and the names of  programs who are over their site limit.