(a) Accounting for personal funds. If the facility manages an individual's personal funds, the SMHF must comply with this section and ensure that:
  (1) a complete accounting of personal funds entrusted to the SMHF is maintained;
  (2) personal funds are not commingled with facility funds or the funds of any person other than another individual for whom the SMHF manages personal funds; and
  (3) an individual's personal funds are only expended for that individual's use and benefit.
(b) Account requirements. The SMHF must manage personal funds in a pooled trust fund account.
  (1) The trust fund account must be insured under federal or state law.
  (2) The SMHF must retain all bank statements from financial institutions regarding trust fund accounts.
  (3) Within 30 calendar days after receiving the bank statement, the facility must reconcile the bank statement with the general ledger as described in subsection (c) of this section and personal funds ledger as described in subsection (h)(5) of this section.
  (4) Each business day, staff must reconcile:
    (A) each individual's transactions with the trust fund control ledger; and
    (B) the personal funds ledger with the trust fund control ledger.
(c) General ledger. The SMHF must maintain a general ledger that separately identifies each financial transaction, including:
  (1) the name of the individual for whom the transaction was made;
  (2) the date and amount of the transaction, including interest;
  (3) the balance after the transaction; and
  (4) identify the SMHF name in the account title and the type of account, e.g., Austin State Hospital, Trust Fund Account.
(d) Investment. Unless an exception is granted by the director, State Mental Health Facilities and written documentation of such is maintained at the facility, the SMHF must invest at least 75% of the average monthly balance of the total held in trust for the previous six months in an insured Texas financial institution.
(e) Interest. If personal funds accrue interest, the SMHF must prorate and distribute the interest earned to each participating individual at the end of the month.
(f) Depositing personal funds. The SMHF must deposit in the trust fund account all funds that it receives on behalf of an individual.
(g) Access to personal funds. The treating physician must determine the individual's ability to manage his or her personal funds and:
  (1) if there is a need for a budgeted amount, set the amount, and document the amount in the individual's medical record; and
  (2) if there is a need to restrict the individual's use of personal funds the treating physician must document the need for the restriction in the individual's medical record.
(h) Personal funds documentation. Staff must maintain a personal funds documentation for each individual that includes:
  (1) the name of the individual;
  (2) the name of the individual's LAR and representative payee, as applicable;
  (3) the date of the individual's admission to the SMHF;
  (4) the individual's budgeted amount;
  (5) a personal funds ledger that includes the date and amount of each transaction and the balance after each transaction; and
  (6) any contribution acknowledgment as described in §417.46 of this title (relating to Contributions).
(i) Documenting expenditures and deposits.
  (1) Expenditures.
    (A) Staff must retain a sales receipt for each expenditure made on behalf of an individual.
      (i) If a sales receipt documents an expenditure for more than one individual, the SMHF must indicate on the sales receipt the amount allocated to each individual.
      (ii) If a sales receipt does not include the specific item or service purchased or the name of the seller, staff must attach such documentation.
    (B) Staff must explain each expenditure to the individual and request that the individual sign the receipt. If staff determine that the individual does not understand the explanation, the individual does not sign the receipt, or the individual's signature is illegible, a witness to the expenditure must sign the receipt. The witness cannot be responsible for managing personal funds or responsible for supervising persons performing such duties.
  (2) Deposits. Except for deposits made electronically, staff must retain a deposit slip issued by the financial institution for each deposit.

Source Note: The provisions of this §417.42 adopted to be effective April 27, 2003, 28 TexReg 3347