INTELLECTUALLY DISABLED PERSONS' SERVICES (TRUST MONEY) BILL Thursday. 5 November 1992 COUNCIL 201 Thursday,S November 1992 That this Bill be now read a second time. This Bill revises the provisions in the Intellectually Disabled Persons' Services Act 1986 on trust accounts. The PRESIDENT (Hon. B. A. Chamberlain) took the chair at 10.2 a.m. and read the prayer. As honourable members are aware, this is not the first time this Bill has been introduced into INTELLECTUALLY DISABLED Parliament. The Bill was introduced by the former PERSONS' SERVICES (TRUST MONEY) government and debated and passed in this House BILL earlier this year. Introduction and first reading The Bill was also introduced in another place in the week prior to the prorogation of Parliament in Received from Assembly. August 1992. Read first time on motion of Hon. R. I. KNOWLES The government has decided to reintroduce the Bill (Minister for Housing). as it is a key element in the program of the Department of Health and Community Services to ANNUAL LEAVE PAYMENTS BILL improve all aspects of the management of trust funds of intellectually disabled clients. Introduction and first reading The Bill repeals sections 45 to 50 inclusive of the Received from Assembly. Intellectually Disabled Persons' Services Act and inserts new sections 45 to 5OR, all of which relate to Read first time on motion of Hon. HADDON the keeping of trust funds. The major elements of the STOREY (Minister for Tertiary Education and Bill are as follows: Training). 1. MANAGEMENT OF INDIVIDUAL CLIENT PETITION TRUST FUNDS Pedestrian-operated signals, Epping The Bill gives the Secretary of the Department of Health and Community Services the responsibility Hon. G. R. CRAIGE (Central Highlands) presented for the management of all trust funds for residential a petition from certain citizens of Victoria praying institutions and residential programs for that funding be provided for the design and intellectually disabled persons. These institutions installation of pedestrian-operated signals in High and programs are operated by the Department of Street, Epping, in the vicinity of Coulstock Street. Health and Community Services. At present the Act requires senior officers of the department to manage Laid on table. these funds. PAPER In large institutions it is not practicable for one senior officer to manage all trust accounts, deposit Laid on table by Clerk: and withdraw all funds, and consult with each resident. There is no power under the Act for the Latrobe Regional Commission - Report for the year senior officer to delegate his or her responsibilities. 1991-92. In addition, the requirements in the Act mean that one person is responsible for all of the trust fund INTELLECTUALLY DISABLED managemen~ functions within an institution. This is PERSONS SERVICES' (TRUST MONEY) undesirable. BILL The amendments in this Bill will rectify these Second reading problems by providing that the secretary will be responsible for managing one residents trust fund. Hon. R. I. KNOWLES (Minister for Housing) - I The fund will consist of a number of accounts, move: including a trust account for each resident who INTELLECTUALLY DISABLED PERSONS SERVICES' (TRUST MONEY) BILL 202 COUNCIL Thursday. 5 November 1992 resides in a residential institution or program. All of residential institution. The purpose of these accounts the responsibility regarding investments will rest is to provide goods, services and other amenities for ultimately with the secretary. the general use of residents in each institution. The amenities provided with funds from these accounts The Bill will allow the secretary to delegate his or are additional to the standard provision of board, her functions to the appropriate officer or employee lodging and 24-hour support staffing provided by within the department. For example, investment institutions. decisions will be made by senior staff in consultation with a major bank which has been contracted as At present the amenities accounts consist of funds manager. The withdrawal of funds and donations and an annually determined percentage consultation with eligible persons will be delegated of interest earned on each resident's trust account. to separate staff within each institution and region. This annually determined percentage is usually The separation of powers within the department's 2S percent. structure will provide a number of checks and balances to ensure that the funds are properly This is an inequitable process as the amount that administered. The computer system used by the each resident contributes depends upon the amount department will enable scrutiny of transactions by held on trust for him or her by the department. regional and central management. Some residents have administrators or family members who manage their money. Such residents 2. MANAGEMENT OF FUNDS IN contribute substantially less to the amenities account NON-GOVERNMENT REGISTERED than residents who have their total funds managed RESIDENTIAL SERVICES by the department. As the funds from the amenities account are used for goods and services for all Non-government agencies operate "registered residents in an institution such a procedure is clearly residential services". The Act currently requires unfair. individual trust accounts to be maintained for each resident of a registered residential service. It is proposed to rectify this situation by creating a new Residents Amenities Fund for each institution. The Bill provides the non-government organisations Each fund will be comprised of an annual levy that run these services wi,l the ability to elect to use payable by all residents of that institution and any the residents trust fund al. associated donations received. The levy for each institution will computer-based accounting systems. Those be determined by the Minister after considering the organisations with scarce resources and little views of a standing committee comprised of expertise in the areas of trust fund management will residents, relatives and staff of the institution. It is be able to operate individual trust accounts within anticipated that the levies are initially likely to be of the fund. the order of two or three dollars per week. This is a substantial reduction for many clients, and is an This proposal will give non-government equitable charge. All income derived from the organisations the option of USl g a more Residents Trust Fund will be distributed to accounts sophisticated trust management system. However, within the fund, and not be used for amenities. to ensure that the non-government sector retains its independence the use of the Residents' Trust Fund is 4. EXPENDITURE OF FUNDS FROM RESIDENTS not mandatory. If a non-government organisation AMENITIES FUNDS wishes to manage its own trust accounts it may continue to do so. To ensure that appropriate The current provisions of the Act provide that the standards are maintained, in these cases the senior officer of each residential institution may department will discuss trust accounting methods withdraw money from the residents amenities with the non-government organisations as part of account. To improve the quality and accountability the service agreement process. The Bill will ensure of expenditure the Bill provides that this that current good practice will be maintained and responsibility will lie with the secretary or his or her improved amongst the non-government sector. delegate. The secretary must also prepare and have regard to an annual plan for the expenditure of 3. RESIDENTS AMENITIES FUND money from these funds. Consultation with a standing committees comprised of residents, The Act currently provides that a Residents relatives and staff of each institution is to continue, Amenities Account must be established for each CONSTITUTION (MINISTERS) BILL Thursday, 5 November 1992 COUNCIL 203 except that the committee is now to be consulted The purpose of the Bill is to increase the number of when the annual plan is prepared. members who may be Ministers of the Crown. 5. DISBURSEMENT OF AMENmES FUNDS Since the first Constitution Act in 1855 the WHEN INSTITUTIONS CLOSE composition of the Ministry, both in overall numbers and in the percentages drawn from the Legislative The Act is silent on the disbursement of money in Council and from the Legislative Assembly, has residents amenities accounts when institutions close. been the subject of a number of amendments. The Act also does not make any provision for the disposal of assets purchased from the residents Originally the Ministry was limited to seven amenities accounts when institutions close. Ministers, only four of whom had to be members of Parliament. Over the years subsequent amendments The Bill provides for distributions to occur in saw the number of Ministers vary until the 1976 relation to institutions that have closed before these amendment by the Hamer government, which amendments come into operation. As the residents established the position that has existed since, where amenities accounts have been funded from a the maximum number of Ministers is 18, with no proportion of interest earned on residents' trust more than 6 coming from the Legislative Council or accounts it is appropriate that the proceeds from the 13 from the Assembly. amenities accounts and from the sale of goods purchased through those accounts are returned to In proposing the 1976 amendment Premier Hamer residents. pointed to the need to cope with the greater difficulty and complexity of government The Bill also provides for a distribution of funds in a administration. This remains a priority today. Residents Amenities Fund to residents to occur when an institution closes in the future. This State currently stands in a position of difficulty when as almost never before it is imperative that CONCLUSION there be real, effective and vigorous leadership from the government so that Victoria can once again The department's work to develop enhanced assume her rightful poSition amongst the States and systems and procedures has been supported by the within the Commonwealth of Australia free from Public Advocate, the Guardianship and the burdens of the past.