Code of Massachusetts Regulations
104 CMR - DEPARTMENT OF MENTAL HEALTH
Title 104 CMR 30.00 - Fiscal Administration
Section 30.02 - Client Funds in Community Programs
Universal Citation: 104 MA Code of Regs 104.30
Current through Register 1531, September 27, 2024
(1) Scope. 104 CMR 30.02 shall apply to community programs which are operated, or contracted for, by the Department.
(2) No Department operated or contracted community program shall restrict the right of a client to acquire, retain and dispose of personally-owned funds, including the right to maintain an individual bank account, unless the client is a minor, or has a legally authorized representative with authority over such funds.
(3) A Department operated, or contracted community program may hold funds of a client served by the program only if one of the following circumstances applies:
(a)
The program, the vendor operating the program, or an employee of the program,
has been designated by the Social Security Administration, the Veterans
Administration, or another state or federal government entity, as the
representative payee of the client.
(b) The program provides the client with
housing, or supported residential services that are designed to assist the
client in maintaining his or her residence, and the client or his or her
legally authorized representative authorizes the program in writing to hold
funds on behalf of the client. The client or legally authorized representative,
if any, retains the unrestricted right to manage and spend the funds deposited
with the program, unless responsibility to manage and expend the deposited
funds is delegated to the program in writing. The funds for which management
responsibilities have been delegated to the program shall be referred to in
104
CMR 30.02(3) as delegated
funds.
(4) The following requirements apply to programs that hold client funds.
(a) If client funds are held pursuant to
104
CMR 30.02(3)(a), then:
1. the funds that may be held are limited to
those that are received as representative payee by the program, the vendor
operating the program, or an employee of the program;
2. the applicable federal or state
regulations, policies and directives shall govern the holding and use of such
funds; and
3.
104
CMR 30.02(4)(b)2 and 3
shall be followed to the extent they are not inconsistent with the applicable
Social Security, Veterans Administration or other state or federal government
entity's requirements.
(b) If the client funds are held pursuant to
104
CMR 30.02(3)(b), then:
1.
Limit on the Amount That May
Be Held. A program may not hold or maintain more than $1,000 of a
client's funds unless the client is saving funds for a specific purpose that is
described in the client's Community Service Plan in accordance with
104
CMR 29.11: Community Service Plan
in which event a program may not maintain more than $2,000 of a
client's funds.
2.
Expenditures. The following applies to how such funds
can be expended:
a. Delegated funds cannot be
applied to goods or services which the program is obligated by law or funded by
contract to provide to the client, which would already have been included in a
charge for services or for residential services and supports in the community,
or which the patient is otherwise entitled to receive without charge.
b. The Program and Program staff cannot
benefit directly or indirectly in any expenditure.
c. Expenditures of delegated funds shall be
for a purpose which directly benefits the client and to which the client has
agreed.
3.
Management of Funds. In managing funds held on behalf
of a client,
a. The funds must be maintained
in interest bearing accounts if commercially available and fiscally
prudent.
b. If the funds are
maintained in a group account, individual records must be maintained of each
client's deposits and withdrawals and interest must be appropriately
apportioned among the clients in the group.
c.
Records. The
program must be able to account for all funds received from a client or
received on his or her behalf. A record shall be maintained for each client
showing the amount of funds received, date received and source of the funds and
for all funds disbursed, the amount, date disbursed, reason for disbursement,
and to whom funds were disbursed.
d.
Accounting. The
following persons shall, upon their request, be provided a complete written
account of all funds of a client or, if requested, a written or oral statement
of the current balance of funds of the client:
i. the client;
ii. the client's legally authorized
representative, if any;
iii. if the
program or an employee of the program is the representative payee of the
client, the District Office of the Social Security Administration or the
Veterans Administration concerning funds received from these agencies;
and
iv. the Department.
4.
Internal
Controls. The program must have written procedures concerning
internal controls and accounting procedures for the management of client funds
deposited with the program and such policies and procedures shall be fully
implemented by the program.
5. The
program or program staff cannot have a direct or indirect ownership or
survivorship interest in the funds.
6. The client's Community Service Plan
pursuant to
104
CMR 29.11: Community Service Plans
shall address, as appropriate, the client's needs and desires for
fiscal budgeting and management training and
planning.
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