Association for Barry S Bay, Ontario K0J 1B0
Madawaska Valley 19491 Opeongo Line, P.O. Box 1178,
Association for Barry’s Bay, Ontario K0J 1B0
Community Living Tel: (613) 756-3817 Fax: (613) 756-0616
www.mvacl.ca
Personal Funds Policy
Policy Statement
Where a person receiving supports has requested assistance with the management of their day- to-day finances or the assistance is identified in the person’s individual support plan a separate book of accounts and financial records is prepared and maintained for each person with a developmental disability who receives assistance with the management of their day-to-day finances.
Procedures
Annual Financial Planning:
Each person receiving support from MVACL will complete, with assistance as needed, an Annual Financial Plan, and Personal Budget. (see attached Appendix a & b) These will be reviewed on an annual basis.
Banking Procedures to Open Accounts for Organization at a bank branch
Document requirements:
Prior to opening the account, the bank is required to obtain documentation to indicate that the Agency has the right to operate and manage an account on behalf of the individual.
The following documents are required:
1. An “Indemnity Agreement” signed by the Agency (see attached Appendix c)
2. A Letter of Direction from the Agency to open the account, designating their appointed Co-signer as the POA for the Supported Person. (see attached Appendix d)
Opening up and account:
Both the Supported Person and the designated co-signer are to visit a branch together to open the account and present a copy of the POA document, a signed “letter of direction” and “Indemnity” agreement from the corporate client.
· MVACL should contact the Bank with the information such as the client name and make an appointment at the branch.
· The Supported Person and the Co-signer must present two (2) pieces of identification. It is mandatory that one piece must be from among those set out in Type A. Also, the Social Insurance Number Card (SIN Card) of the Supported Person must be used as one (1) form of identification
Identification / Type A / Type BDriver’s License issued in Canada / X
Canadian Passport / X
Foreign Passport / X
Certificate of Canadian Citizenship / X
Certificate of Naturalization in the form of a paper document or card, but not a commemorative issue / X
Permanent Resident Card / X
Citizenship and Immigration Form IMM1000 (prior to June 28th, 2002) / X
Citizenship and Immigration Form IMM1442 / X
Citizenship and Immigration Form IMM5292 / X
Birth Certificate issued in Canada / X
SIN Card issued by the Government of Canada / X
Old Age Security card issued by the Government of Canada
As of January 1st, 2008, Old Age Security cards will be issued without reference numbers / X
Certificate of Indian Status issued by the Government of Canada / X
Provincial Health Insurance Card as permitted to be used for identification purposes under provincial law *not permitted if issued in PEI, Manitoba or Ontario / X
A document or card, bearing the individual’s photograph and signature, issued by any of the following authorities or their successors:
a) Insurance Corporation of British Columbia
b) Alberta Registries
c) Saskatchewan Government Insurance
d) Department of Service Nova Scotia and Municipal Relations
e) Department of Transportation and Public Works of the Province of Prince Edward
Island
f) Service New Brunswick
g) Department of Government Services and Lands of the Province of Newfoundland and
Labrador
h) Department of Transportation of the Northwest Territories
i) Department of Community Government and Transportation of the Territory of Nunavut / X
Provincially Issued ID Card with Photo (in lieu of Driver’s License) / X
US Driver’s License / X
US Birth Certificate / X
Employee identity card, issued by a well-known employer, bearing the individual’s photograph / X
A signed automated teller machine (ATM) card or client card bearing the name and signature of the cardholder, issued by a member of the Canadian Payments Association. (i.e. RBC Client Card) / X
Credit card, issued by a member of the Canadian Payments Association in the name of, or bearing the name of, the individual and bearing the individual’s signature. / X
Canadian National Institute for the Blind (CNIB) client card bearing the individual’s photograph and signature / X
Credit Card issued by a known retailer (e.g. Sears, Canadian Tire, etc.). / X
Senior Citizens privilege card / X
Identification / Type A / Type B
Introduction letter from previous bank with signature / X
Sponsor, personally known by RBC client or community member. (Identity of the individual confirmed by a client in good standing with RBC Financial Group or by an individual of good standing in the community where the bank is situated.) / X
Canadian University or College Student Card with Photo / X
Diplomatic ID issued by Foreign Affairs / X
Changing the Caregiver on the account
When there is a change in Co signer on the Supported Person’s account, the Corporate Client must provide the bank with a “Notice of Change” (see attached Appendix e) document and a new Indemnity Agreement before any account maintenance can be performed. The letter must indicate the former Co signer and the appointment of a new Co- signer on the existing account. Only the new Co-signer needs to attend the branch and present two (2) forms of identification as mentioned above.
Co-signed Bank Accounts
A co-signed account is an account in the name of the Supported Person by the agency that requires a second signature to permit funds to be removed from the account.
A co-signed account is usually put into place for one or all of the following reasons:
· As a last resort for people supported who have been identified as unable to demonstrate responsible control over their finances, putting at risk their health & safety. For example their ability to pay for food and or shelter. When this type of situation occurs it is necessary to ensure the Supported Person is provided with due process. As a measure to ensure that respect of the Supported Person’s rights is being exercised.
· It is required by the financial institution, as the financial institution has determined the person is not responsible and requests a co-signer for accountability.
· It is required by the person being supported as they have self-identified the need for assistance (i.e. excessive spending is depleting their savings and they wish to save for something specific or temporarily request assistance to regain control of their finances.)
Access
Bank accounts will be established for Supported Persons at a bank that is reasonably close to their residence. All Supported Person bank account statements will be printed off monthly by the Finance Department. The statement will include a monthly date and a list of all transactions.
Access to Supported Person financial records is restricted to the Supported Person, primary Support Worker, appropriate Manager, and the Finance Department. If the primary Support Worker is absent, the Manager will reassign caseload duties and responsibility for managing the Supported Person’s finances.
Each Supported Person will be encouraged to apply for direct deposit as this is a much more effective way to manage the account. Staff will assist the individual in making application for direct deposit.
Where a Supported Person receives banking support from staff, the Manager must approve any purchases over $50 using a Purchase Order.
A family who takes on financial responsibility would be expected to participate in the creation of the Personal Budget and Financial Plan.
Any monies forwarded from the family for services received and for the personal use of a Supported Person will be administered according to MVACL’s Personal Funds Policy. Receipts will be forwarded in a timely fashion.
All exceptional arrangements with families who take responsibility for managing Supported Person finances will be reviewed annually when the Personal Budget Plan is updated.
Personal Needs Allowance (PNA)
The following applies to all persons who receive O.D.S.P. and their cheque indicates Personal Needs Allowance. Personal Needs Allowance (PNA) provided under O.D.S.P. is an allowance intended to enrich the quality of life of the person supported. The money provided for the personal use of the Supported Person is intended to purchase goods and services not considered to be the responsibility of the agency
Examples of Purchases – PNA
Hobbies, crafts, cosmetics, perfume, special shampoo, clothing, gifts, recreational/leisure activities, admission to community events, dinner out, cigarettes, alcoholic beverages, coffee shop purchases, snack food, personal purchases, special chair, bicycle etc.
Primary Support Worker’s Responsibilities – PNA
The Primary Support Worker assigned to a Supported Person who receives a PNA will not only be required to follow the above procedures but will also be responsible to ensure that PNA money is spent in the interest of the Supported Person and not for expenses covered by the agency. The monthly review and sign off of financial records for each Supported Person by the Primary Support Worker indicates the review took place and is in compliance with this policy.
Manager’s Responsibilities – PNA
The Manager responsible for the Supported Person who receives a PNA will review expenditures to ensure that PNA money is spent in the interest of the Supported Person and not for expenses covered by the agency. The monthly review and sign off of financial records for each Supported Person by the Manager indicates the review took place and is in compliance with this policy.
Income Tax Preparation
The Primary Support Worker will be responsible for retaining all tax related documents throughout the year. The Manager may delegate responsibility for the income tax preparation to either the Primary Support Worker or a Third Party offering Tax Service.
Record Keeping
Full financial records must be kept on all co-signed accounts, identifying each transaction requiring removal of funds from the account, and receipts to match.
These accounts may be held with identified advocates or family members, where this has been deemed appropriate.
Having a co-signer does not mean that the person being supported has relinquished control over their money or their account, but has identified they need additional support with respect to their financial situation.
Having a co-signer on the account may give the Primary Support Worker an opportunity to discuss and/or counsel the person being supported regarding their needs in relation to their wants. It will also provide opportunity for the Supported Person to think through the purchase. If after receiving all possible information, the individual determines they still wish to spend the money a signature will not be denied unless it will leave them with no funds for food or shelter or if funds are not available.
All expenses and corresponding receipts for Supported Person accounts are entered into a ledger. Receipts will be kept at the supported person’s residence for one year. Receipts for items that have warranties longer than one year will be kept until the warranty expires.
All withdrawals, whether cheque or voucher transactions, requires a signature or mark of the supported person and the Financial Department. The use of Debit cards has been discontinued.
Petty Cash
Each Supported Person will have a Petty Cash fund not to exceed one hundred Dollars $100. When a Supported Person requires full support to spend their money and staff oversee their finances, staff are expected:
· To count the money prior to removing any funds. If it does not match the balance in the ledger, report it to the Primary Support Worker directly, or in the communication book. The Primary Support Worker will complete an investigation and discuss the findings with the Manager as soon as possible.
· Enter the actual amount in the ledger and highlight the line.
· Record the amount taken from the Petty cash.
· Obtain receipts whenever possible, if receipt is not retained the use of a receipt voucher is required.(Appendix f)
Replenishing “Petty Cash” requires the use of a withdrawal voucher and requires two signatures, Supported Person and the Finance Department.
Larger purchases over $50.00 or larger cash requests over $100.00, requires a purchase order and cheque for management approval, at which time the Finance Department would sign the cheque.
All supported persons have the right to keep spending money on their person should they wish to do so. Staff are expected to do appropriate money management counseling. The supported person will initial the ledger to remove petty cash from their account. Receipts are not required.
Purchases or activities over $25.00 will require approval from Manager (Purchase Order/Action Plan).
Loans/Purchases
Staff will not encourage borrowing/lending between persons supported. If necessary, persons supported may borrow from the agency’s petty cash to participate in an activity.
If at any time staff or a person receiving support wish to sell or purchase anything from one another written approval must be obtained from the Manager prior to the transaction.
Monthly Review of Financial Records
The Financial Department will print off and distribute to the appropriate house, the Bank Statements on the first working day after the end of the month.
The Primary Support Worker is responsible for completing monthly reviews of bank account ledgers (statements, transactions and purchases) for persons supported who are identified as receiving support with their finances in their personal Support Plan. The Review/Reconciliation will consist of the Bank Reconciliation Sheet (Appendix g), the bank statement, a copy of the cheque book ledger and the Petty Cash ledger and all receipts. The Supported Person and Primary Support Worker will sign the record to indicate this has been done. Any discrepancies are reported in writing to the Manager immediately.
The Manager must review and sign off each Supported Person bank account ledger each month. Discrepancies that cannot be adequately explained or supported will be investigated and a report will be forwarded to the Executive Director.
If the discrepancy is more than $100 or there are more than three occurrences in one month the Executive Director will be notified and a designated Audit Team will conduct an audit of the Supported Person account and report the findings to the Manager and Executive Director.
It is the responsibility of the persons supported Primary Support Worker to rectify any discrepancies after an investigation by the Manager and Executive Director.