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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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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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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.
Penalty: 60 penalty units
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.
Penalty: 60 penalty units
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.
Penalty: 60 penalty units
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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14 Rights and accountability: Management of money policy (April 2010)
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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