F568 Accounting and Records of Resident’s Funds

In the residents’ rights regulations, F568 requires specific accounting practices and maintaining records of funds deposited with the nursing home for the residents. Within this regulation, the nursing home must:

• Establish methods of accounting of the resident’s funds based on generally accepted accounting principles.
• Ensure the accounting of resident funds is separate from business funds as well as any other resident’s funds.
• The record for the resident’s funds must be available to the residents via quarterly statements and upon request.

The interpretative guidance for this regulation includes that the accounting of the resident’s funds must include transactions that occurred for the specific resident such as when they occurred, what they were, and an ongoing balance. Additionally, the residents should be given a receipt of the transaction and the nursing home should retain a copy of the receipt. Finally, quarterly statements are considered timely if provided within 30 days of the end of a quarter and upon request.

This regulation is not frequently cited. However, Appendix PP includes some examples of noncompliance including that the nursing home did not assure the accounting of resident’s funds were separate from business funds and not providing the resident the quarterly statements.