Considered to be the "crime of the 21st century,” financial exploitation is the most common form of elder abuse in the U.S., and the number of financial scams and fraud incidents only continue to rise. To keep your residents and the reputation of your skilled nursing or senior living facility from falling victim, it is important to establish documented policies and procedures for managing resident trust fund accounts.
 
Resident trust funds are optional accounts that are managed by the facility on behalf of the resident. A small portion of these funds are held onsite in petty cash, which is made available to residents during posted and regulated “banking hours.” Residents typically use this cash to purchase vending machine snacks, salon services or other small expenditures. The amount of petty cash kept on hand varies depending on state law and the number of residents managed by the facility. Establishing written procedures and proper safeguards can help facilities minimize the risk of unintentional or intentional mismanaged petty cash funds—including employee theft and fraud.

Never Share Petty Cash Accounts
It is worth noting that many skilled nursing or senior living facilities maintain more than one petty cash box. In addition to the resident trust petty cash, there is usually a cash box kept for office operations, which is typically used for community or department supplies that could not be purchased in advance. The two cash boxes should never be intermixed, and staff with access to both accounts should not borrow cash from one box to supply the other. If more money is requested from the trust petty cash than is currently available, the facility must make the cash available to the resident based on state guidelines.

Assign and Segregate Duties
Whether the two petty cash boxes are managed by the same person or not, it is necessary to designate at least one other person in the business office responsible for the accounts. For example, many facilities rely on the front desk receptionist to manage the day-to-day banking demands for residents. This person will keep the petty cash box locked up at their desk, for residents to approach during the posted banking hours. This person will need access to the resident’s account balance to verify whether personal funds are available, and _they are required to keep a log of each transaction. At the end of the day, the log and cash box should be handed over and reviewed by the business office manager or another designated employee. This segregation of duties can help ensure there is a proper paper trail and that the account is balanced daily.