Disability Services
Rights and accountability: Management of
money policy
April 2010
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© Copyright State of Victoria 2010
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April 2010
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Contents
Context statement
4
Definitions under the Act
4
Other definitions/terms
5
Application of policy
5
Objective
5
Key policy principles
6
SECTION A: MANAGEMENT OF MONEY
— ALL DISABILITY SERVICE PROVIDERS
8
SECTION B: MANAGEMENT OF MONEY
– RESIDENTIAL SERVICES ONLY
9
B1
Appointment as a guardian and or financial administrator
– residential service
9
B2
Residents’ money
11
B3
Maximum amount of cash being held on behalf of a resident
13
B4
Resident’s money – Inclusions and exclusions
13
B5
Accountability for residents’ funds
14
B6
Provision of end-of-month financial statement and
access to records
14
B7
Authorised access to records
15
B8
Investment of trust funds
15
B9
Limit on resident funds held in trust
16
B10 Trust money must be paid when person leaves
16
B11 Residents’ trust fund – Departmental-managed residential services 17
Related policies, procedures and legislation
18
Contacts
18
Approved
18
Rights and accountability: Management of money policy (April 2010)
3
Context statement
The Disability Act 2006 (the ‘Act’) was passed by Parliament on 4 May 2006 and
became fully operational from 1 July 2007.
The Act provides the framework for a whole-of-government and whole-ofcommunity approach to enable people with a disability to actively participate in the
life of the community. The Act is guided by the principles of human rights and
citizenship and provides substantial reform to the law for people with a disability in
Victoria.
Definitions under the Act
‘Community residential unit’ means a residential service that is declared to be a
community residential unit under Section 64.
(Please note: in practice this means a residential service in a ‘group home’ that is
declared a community residential unit under Section 64)
‘Department’ means the Department of Human Services.
‘Disability service provider’ means:
a. Department of Human Services regional management and staff; or
b. a person or body registered on the register of disability service providers.
‘Disability service’ means a service provided by a disability service provider
specifically to support people with a disability.
‘Public Advocate’ means the Public Advocate appointed under Section 12 of the
Guardianship and Administration Act 1986.
‘Resident’ means a person who receives disability services at a residential service.
‘Resident’s administrator’ means the resident’s attorney appointed under an
enduring power of attorney to administer the resident’s property or a person
appointed by a court or tribunal as the administrator of the resident’s property.
‘Resident’s guardian’ means the resident’s guardian appointed under the
Guardianship and Administration Act or appointed by a court and, if the resident is
a child, includes the child’s guardian whether or not they are the child’s natural
parent.
‘Residential service’ means residential accommodation with rostered staff
provided by, or on behalf of, a disability service provider for the purpose of
providing disability services to:
a. one or more residents in a community residential unit; or
b. one or more residents in a residential service other than a community residential
unit.
‘Residents’ Trust Fund’ means the Residents’ Trust Fund continued under Section
91.
‘Secretary’ means the Secretary to the Department of Human Services.
Rights and accountability: Management of money policy (April 2010)
4
Other definitions/terms
‘Authorised representative’ in the role of a ‘financial administrator’ means a
person who is appointed under an enduring power of attorney (financial) to
administer the person’s property or a person appointed by a court or tribunal, such
as the Victorian Civil and Administrative Tribunal (VCAT), as the administrator of
the person’s financial and legal affairs.
‘Nominated representative’ means a person who is the recognised signatory to
the resident’s Centrelink bank account or who has been nominated to provide and
be responsible for financial management support under the financial plan of the
person with a disability.
‘Group home’ is a residential facility where shared supported accommodation is
provided and supports are linked to the funded residential service provided to one
or more people with a disability on a long-term basis by staff employed by the
disability service provider.
‘Penalty units’ the Monetary Units Act 2004 governs the indexation of fees and
fines set by various departments. Fees and fines are automatically indexed through
the value of a fee or fine unit being fixed by an ‘annual rate’, and applied from 1
July each year. When fixing the annual rate, the Treasurer takes into account the
rate of inflation and the cost of delivering government services. The value of the fee
or fine unit is subsequently published in the Government Gazette and major
newspapers.
‘VCAT’ is the Victorian Civil and Administrative Tribunal that can appoint guardians
and administrators for persons with a disability over the age of 18 years. VCAT may
appoint family members or the Public Advocate as guardian. VCAT may appoint
family members or companies such as the State Trustees as administrators.
Application of policy
This policy applies to both department-managed and funded services provided by
community service organizations (CSOs).
Objective
The objective of this policy is to give effect to the implementation of Part 6 of the
Act – Rights and accountability, Division 2 – Provisions relating to the management
of money. This policy will provide disability service providers and their staff with an
understanding of their roles and responsibilities in relation to the management of
money for people with a disability living in department-managed or funded
residential services provided by registered disability service providers. The same
requirements apply to any other support services that involve handling of program
participants’ funds.
The key purpose of this part of the Act is to create specific rights for persons
receiving supports, particularly those residing in residential services, and to impose
specific obligations on registered disability service providers who are involved in the
handling and management of money belonging to people with a disability.
Rights and accountability: Management of money policy (April 2010)
5
Key policy principles
Fundamental to this policy is the department’s desire to support improvements in
the management of residents’ financial affairs. Provision of residential services
necessitates the frequent handling of significant amounts of residents’ funds. Key
considerations in meeting this responsibility include:
• Financial planning
Financial planning should consider current and future circumstances and
incorporate estate planning for the individual. This is the responsibility of a
financial administrator.
Development of a clear financial plan for accommodation support only to guide
the application of a resident’s finances for discretionary purposes and to meet
their financial obligations including the payment of fees and charges is a part of
the financial planning process, which involves the disability service provider’s
input. The resident’s financial plan for accommodation support should be
reviewed on a regular basis between staff, the resident and/or the guardian or
administrator to ensure currency of circumstances and directions as well as the
effectiveness of financial management arrangements. This should occur at least
annually.
• Independence and choice
People with a disability receiving funded support services or living in residential
services should be supported to manage their own money as far as they are
able. Where appropriate, such support may be provided by families or formally
appointed administrators.
In undertaking these responsibilities it is important that the parties act in the
best interests of the individual, maximize the individual’s involvement in
decisions, show due regard for confidentiality of information, maintain accurate
records of information and are accountable for directions made.
Disability service providers must not act as financial administrators for people
with a disability for whom they provide support. Restricting the role of disability
service providers in the direction and control of money safeguards individuals
from potential conflicts of interest and perceptions of influence.
Other safeguards available include the appointment of a formal administrator by
the Victorian Civil and Administrative Tribunal (VCAT). Advice should be sought
from the Office of the Public Advocate before making an application to VCAT.
The department recognises that efforts to enhance financial management
practices will occur over time and the department and CSOs will actively support
families, carers and guardians to pursue this, being respectful of the important
role that families and carers play in supporting residents. Where a person with a
disability lacks the capacity to make informed decisions regarding their financial
affairs, the department will accept instructions related to the disability support
financial plan from a formally appointed administrator or the nominated
representative of the person with a disability.
• Accountability, transparency and confidentiality
Clear information, records, processes and systems need to be in place to account
for the expenditure of money held in trust for a person with a disability.
Decisions about the expenditure of funds need to flow from the financial plan
Rights and accountability: Management of money policy (April 2010)
6
with authorisation by the nominated representative or the formally appointed
administrator, if any, on the application of funds.
• Privacy
People with a disability are to be afforded the same rights of privacy in financial
matters as other members of the community.
Provision of information
The provision of any advice, notification or information in relation to these
guidelines should be undertaken in line with the requirements of Part 2 – Objectives
and principles of the Act, S7, Provision of advice, notification or information under
this Act.
1. The contents of any advice, notice or information given or provided to a person
with a disability under the Act must be explained by the person giving the
advice, notice or information to the maximum extent possible to the person with
a disability in the language, mode of communication and in terms that the
person is most likely to understand.
2. An explanation given under (1) must, where reasonable, be given both orally
and in writing.
3. If a person is incapable of reading and understanding the information provided,
the disability service provider must use reasonable endeavours to convey the
information to the person in the language, mode of communication or in terms
that the person is most likely to understand.
4. The disability service provider may give a copy of the advice, notice or
information to a family member, guardian, advocate or other person chosen by
the person with a disability. Where no person is chosen, the information may be
given to a person the disability service provider considers can assist the person
with a disability. The person must not be employed or be a representative of the
disability service provider.
It is important that families are supported to participate in the life of the individual
in order to foster positive and cooperative partnerships between family and
disability service providers. This is of particular importance with respect to assisting
the individual to understand their rights, responsibilities and support available to
them.
It is important, however, that all parties are mindful of respecting the wishes of the
individual accessing services.
Victorian Charter of Human Rights
This policy has been developed to support the principles and requirements of the
Act and ‘The Victorian Charter of Human Rights and Responsibilities’.
This document is presented in two sections:
• Section A: Applies to all service provision.
• Section B: Applies only to residential services.
Rights and accountability: Management of money policy (April 2010)
7
Section A: Management of money
— all disability service providers
S90 A disability service provider, or a person employed by a disability service
provider must not act as a financial administrator for a person with a disability
provided with disability services by that disability service provider.
Penalty: 60 penalty units
Policy application:
1. Restricting the role of disability service providers in the direction and control of
money safeguards people with a disability, employees and the service provider
from potential conflicts of interest and perceptions of influence that could occur.
2. The role of financial management, where one is required due to a person’s lack
of capacity to make informed decisions about their finances, may be undertaken
by families and friends or significant others, or an authorised representative
through formal appointment as an administrator for a person with a disability.
Only one of these individuals will have the primary responsibility and
accountability as the ‘nominated representative’ if there is no formally appointed
administrator for the person.
Further information on the appointment of financial administrators can be
obtained from the Office of the Public Advocate or the Victorian Civil and
Administrative Tribunal.
3. Wherever possible, a person with a disability must make his or her own financial
decisions. Staff should provide assistance only in a support role, not a decisionmaking role. This support must be provided in the context of the type of
disability support service provided, for example, accommodation support,
community access, day programs and respite. Staff should not provide advice
outside areas of their responsibilities, for example, investment advice.
Exceptions:
4. S90 (2) allows the Secretary to provide such a function where it is exercised
under the power of another Act.
5. Refer to B1 of this document in respect of specific limited exceptions for a
residential service.
Rights and accountability: Management of money policy (April 2010)
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Section B: Management of money
– Residential services only1
The following legislative requirements are in addition to Section A for all residential
services that are provided by a registered disability service provider and the
Secretary.
B1 Appointment as a guardian and or financial
administrator – residential service
S93(6) The disability service provider or a person employed by the disability
service provider must not accept an appointment as a resident’s guardian or
resident’s administrator in respect of any resident of the residential service.
Penalty: 60 penalty units
The objective of restricting disability service providers and their staff from
performing functions as a guardian or financial administrator in a residential service
is to safeguard residents and staff from potential conflicts of interest and
perceptions of influence. The separation of these two responsibilities and functions
is paramount to achieving this objective and that of providing protection against a
power or influence relationship between a resident and staff-carer arising from a
service provision context.
Policy application
1. A disability service provider or an employee should not accept appointment as a
resident’s guardian or resident’s administrator in respect of any resident of the
residential service from 1 July 2007 when the Act came into effect.
2. This section does not apply to formal appointments of guardians or
administrators prior to the commencement of the Act. Guardians or
administrators appointed before 1 July 2007 are not required to relinquish their
existing appointments.
3. The disability service provider must ensure that there are procedures in place for
all employees and members of boards or committees of management to be
aware of the requirements under this section of the Act.
4. Where a member of a board or committee of management is involved in a
decision-making process that might impact upon a resident in the service who is
a family member, the board member must declare, at the outset, any potential
risk of conflict of duties and abstain from participation in that process. The board
or committee must satisfy itself that there is no direct conflict of duties before
allowing the member to contribute to the decision-making process, where
appropriate.
1
The provision of outreach services does not fall under the definition of a residential service within the
context of the Act. Section B is, therefore, not applicable to outreach services.
For department-managed services, this means that the residents’ trust fund and the client
expenditure recording system must not be used to manage funds for individuals receiving outreach
support.
All support providers should consider the management of an individual’s funds within the service
planning context mindful of the individual’s needs, financial management skills and the ongoing
development of these skills. This should include identifying situations where staff may be required to
handle money on an individual’s behalf and implementing an appropriate level of accountability that is
not administratively burdensome. Handling money may incorporate activities such as using cash or
having access to bank account details, and account access cards.
Rights and accountability: Management of money policy (April 2010)
9
5. Employees have the responsibility of advising management of any potential
conflict of interest.
6. Residents under 18 years old: This section applies only to residents under
18 years. The department acknowledges that people under 18 years of age with
a disability are best supported within family environments. Where this is not
possible, a small number of people under the age of 18 years may live in a
residential service.
6.1 Children between the ages of 15 and 18 years have the right to make their
own decisions without parental consent. Where parents are not involved in
the day-to-day care of their child less than 17 years but wish to act as
guardians and or financial representatives in making financial decisions for
them, contact is to be made with the Regional Intake Team Leader, Child
Protection to discuss the issue. Departmental staff or disability service
providers must not assume the role of guardian or financial representative.
6.2 Residential services managers, including departmental disability
accommodation services managers, can make financial decisions on behalf
of these residents only when these decisions are funded from sources other
than residents’ money, for example, from the residential service’s operating
budget.
6.3 When residents turn 16 and are entitled to apply for a disability support
pension, staff should assist them in lodging an application to Centrelink and
opening a private bank account. Staff must not be a signatory to the
account.
6.4 Where the resident lacks the capacity to provide informed consent or to
lodge an application themselves and there is no other external person, such
as a family member, known to the resident who is prepared to undertake
this function, management can lodge an application directly with Centrelink,
on the resident’s behalf. A trust account in the name of the resident should
be set up either with a bank or as a subsidiary account within the resident’s
trust fund held by the organisation. Centrelink payments are to be credited
to the resident’s trust account.
6.5 Consistent with the principles of the Act, and the right as well as
responsibility of residents to pay the residential charge, the service provider
can advise Centrelink to deduct a specified amount from the support
pension towards meeting the board and lodging costs of the resident (refer
to the Centrelink rent deduction scheme). This is only appropriate where the
costs are not met elsewhere (for example, financial support provided by the
Office of Children).
6.6 The specified amount is to be based on the same board and lodging fee, or
the sum of the rent component and the agreed housekeeping contribution
that is applicable to the other residents in the same residential service. The
amount can also include additional costs to cover any other program costs
(for example, day program, education fees), including personal expenditure
for personal items and community access that have to be met on behalf of
the resident. However, the department’s policy states that the specified
deduction amount must not exceed 75 per cent of the disability support
pension, and 100 per cent of commonwealth rent assistance. Note that the
provider has the responsibility to ensure that these funds are applied to
cover all costs incurred on behalf of the resident.
Rights and accountability: Management of money policy (April 2010)
10
6.7 Consistent with good practice, transparency and accountability principles
there will be two different accounts held in trust in the name of the resident:
a. A Residential charge deduction account – this account will receive the
rent deduction paid by Centrelink. All outgoings are to be paid from this
account, with proper authorisation by management and documentation
for review or audit purposes. The residual balance in this account after
deduction for board and lodging is for the purpose of meeting the
personal expenditure needs of the resident.
Where funds are insufficient to meet the financial needs of the resident, a
reduced residential charge is to be applied where necessary. Note that
any surplus funds from this account that have accumulated until the
person turns 18 should be transferred to the resident’s account and funds
handed over to a formally-appointed administrator (see below).
b. A resident account to hold Centrelink payments – these funds will not be
accessible until the person turns 18 and a formal administrator is
appointed to make financial decisions on behalf of the resident. The
disability service provider is responsible for providing all transaction
details to the formal administrator.
6.8 All residents, irrespective of their age, who have the capacity and ability to
make financial decisions have the right to make decisions about the use of
their own money. Staff must provide appropriate support and guidance
where requested but cannot make financial decisions on their behalf. This is
a right of the individual and applies even when staff have a different view
regarding the resident’s judgement on the use of funds.
7. All employees are expected to raise issues or concerns regarding conflict of
interest between residents and parents, administrators, and nominated
representatives. This includes bringing any demonstrated risks of financial
neglect, exploitation or abuse of a position of trust to management’s attention.
Assistance and support should be provided to the parties concerned. If
unresolved, a request for a review of the current financial arrangements should
be made to VCAT under the Guardianship and Administration Act 1986. Advice
should be sought from the Office of the Public Advocate in these circumstances.
B2 Residents’ money
S93(1) Disability service providers may manage or control an amount of money
that is not greater than the prescribed amount only if the disability service
provider has written consent to do so from the resident or the resident’s guardian
or the resident’s administrator.
The objective of this section is to ensure adequate protection to the resident and
the disability service provider when the resident lacks financial decision-making
capacity regarding their funds and assets. Residents have varying capacity to make
decisions at various times and in different situations. Where residents are capable
of handling their own funds, they should operate and manage their own private
bank accounts. It is expected that they have full access to their pension and other
income. Wherever possible a resident must make his or her own financial decisions.
If assistance is needed to do this, that should be provided. This role can be
undertaken by families, guardians and administrators.
Rights and accountability: Management of money policy (April 2010)
11
Policy application
1. Management or control of a resident’s money by disability service providers for
the purpose of this section does not include the agreed financial plan for the
accommodation support needs of the resident. This plan covers both the
housekeeping provision and personal needs of the resident.
Management of money should be linked to the support planning process for a
resident. Consideration must be given to identifying the resident’s capacity to
manage their own money. If the resident needs support to manage their money,
the individual’s support planning process must determine any actions to be
undertaken by the disability service provider on behalf of the resident.
A financial plan to provide for the day-to-day accommodation needs of the
resident should be prepared in consultation with the resident and their family,
financial administrator or support network.
This is an open collaborative financial planning process that is conducted in the
best interest of the resident, during which a nominated representative, other
than the disability provider or staff member, is agreed as the most appropriate
person to provide financial management support to the resident.
The nominated representative needs to make funds available to the disability
service provider and to authorise the allocation of a resident’s funds in
accordance with the needs of the individual, as agreed in the financial plan. The
nominated representative is usually a formally-appointed financial administrator
where a formal appointment is already in place, or may be the person who is the
signatory to the resident’s Centrelink bank account.
2. Disability service providers are required to manage and account for these funds
in a trustee capacity consistent with the authorised financial plan (refer to B5).
This is only applicable where these funds are provided to meet planned
household costs and personal items outside the residential charge.
3. Employees must not accept any delegations to make financial decisions on behalf
of a resident in any transaction that cannot be reasonably considered as within
the scope of an accommodation support and community access role. In this
situation, a disability service provider or employee can only support a request if
specific instruction in writing is provided from the nominated representative. This
support does not include the handling of funds for these instructions unless the
nominated representative is a formally appointed administrator.
Examples of these may include:
• Ad hoc significant requests outside the agreed financial plan initiated by the
administrator for the benefit of the resident, for example, a special holiday
trip or purchase of an entertainment system. In these situations, where
required, staff can provide assistance and support to the resident to choose
the preferred product and supplier. ‘Significant’ refers to the amount of
expenditure involved and is relative to the overall agreed financial plan and
the available funds held in trust. The nominated representative will be
responsible for making direct payments on behalf of residents to the selected
supplier.
• Requests for transfer of funds or property of a resident held in trust to
another party, other than the nominated representative.
4. Under the duty-of-care principle, staff should be supported by management to
prevent ‘harm’ to residents. Harm is defined to include neglect, abuse and
Rights and accountability: Management of money policy (April 2010)
12
exploitation. This is extended to the financial affairs of the person. Where there
is evidence of this risk, after appropriate consultations and reasonable follow-ups
with nominated representatives or administrators to resolve matters of concern,
the disability service provider is to initiate a review by VCAT of current
administration arrangements. Advice should be sought from the Office of the
Public Advocate in relation to each case.
B3 Maximum amount of cash being held on behalf of a
resident
93(2) Where the amount of money of a resident being held by a disability service
provider under (93)(1) exceeds the prescribed amount, and funds will not be spent
within 14 days, the funds must be held in trust on behalf of the resident and
deposited in a trust account until the funds are required.
The objective of this clause is to set a reasonable monetary limit to minimise the
risks to staff of holding and handling unnecessary large amounts of cash on the
premises and to safeguard residents’ funds.
Policy application
1. Prescribed amount: A $250 limit is set under regulation.
2. The Act requires any funds held in excess of this prescribed amount, that are not
needed within 14 days to meet the financial needs of the resident, to be
deposited into a trust account.
These funds are for meeting residents’ daily personal needs, community access,
respite or leisure activities over a fortnight whilst maximising the residents’
control over their finances overall.
Money received from residents for rent or for board and lodging is not part of
this prescribed amount.
3. Disability service providers must ensure processes are in place to identify funds
that will not be used within the 14-day period that are over and above the
prescribed amount.
4. Disability service providers must ensure that they establish an appropriate trust
account to hold these funds. A trust account can be any account that is kept
separate from other operating accounts of the organisation and must be linked
to the purpose and identities of the beneficiaries, that is the residents. Resident
funds can be held in one trust account but an individual’s entitlement under a
subsidiary ledger account must be set up.
B4 Resident’s money – Inclusions and exclusions
S93(7) Money of a resident does not include money:
a. payable to a disability service provider in relation to services provided by the
service provider; or
b. paid to the Secretary to purchase a disability service.
Policy application
Money of a resident does not include:
a. Money for rent, rent and services or a combined board and lodging charge,
where payment is made in respect of services received from the service
provider.
Rights and accountability: Management of money policy (April 2010)
13
b. Housekeeping and personal needs provision identified in the authorised financial
plan for accommodation support.
c. Any fee-for-service payment to the service provider in addition to all of the
above.
B5 Accountability for residents’ funds
S93(3) Where a disability service provider manages or controls the money of a
resident, they must:
a. Keep a copy of the consent for that management or control.
b. Keep the money of the resident in a secure place.
c. Maintain an accurate and up-to-date financial management system that provides
a record of:
• the money of the resident
• the receipt and expenditure by the disability service provider of the money
any investment of the money.
d. All records referred to above must individually itemise each transaction made on
behalf of the resident.
Penalty: 60 penalty units
Policy application
This applies to all funds held on behalf of residents, irrespective of their inclusion in
the definition of ‘resident money’ for the purpose of various sections of this division
of the Act. For instance, funds may be received in advance on behalf of a resident
for subsequent disbursement for payment of rent, board and lodging, housekeeping
contributions and so on, to the provider when due. This is the case with
departmental managed services.
These funds are defined as outside ‘resident money’ but until they are payable on
the due date to the provider, they are received in trust as residents’ money. This
does not apply to payments received from residents who may choose to pay their
residential charges ahead of the due date.
1. Disability service providers must have processes in place to meet the above
requirements of S93(3) and ensure that staff are aware of those processes.
2. Residents’ funds held in trust should be subject to an annual audit of the
financial accounts of the organisation.
3. Residents must be advised upfront of any applicable fees and charges that are
deducted from their account and the basis for these charges. This should be
included in the organisation’s fees policy.
B6 Provision of end-of-month financial statement and
access to records
S93(4) Disability service providers who manage or control the money of a resident
must provide a statement at the end of each month to the resident or the resident’s
guardian or the resident’s administrator specifying:
1. the current balance
2. any income received and expenditure incurred on behalf of the resident since the
previous statement
3. the current status of any liabilities incurred on behalf of the resident.
Rights and accountability: Management of money policy (April 2010)
14
Penalty: 60 penalty units
Policy application
1. All disability service providers who manage or control the money of a resident
must provide an end-of-month financial statement to the resident, or the
resident’s guardian or the resident’s administrator or nominated representative,
within a reasonable time period. This timeframe will depend upon the accounting
processes, including reconciliation of accounts before the generation of financial
statements. For example, with department-managed services, the statement is
issued by the 20th of the month following the month the statement refers to.
2. Disability service providers should advise when this end-of-month statement
would normally be available.
3. The financial information is confidential and must not be provided to any person
who has not been authorised by the resident or the resident’s administrator or
nominated representative.
4. If the statement is given to the resident, management needs to take reasonable
steps to ensure that it is provided in a format and mode of communication that
the resident is most likely to understand (refer to Section 7 of the Act regarding
provider obligations in the provision of advice, notification or information under
the Act).
5. Disability service providers need to ensure responsiveness for the timely
provision of financial details on current resident account balance and details of
recent transactions in response to the ad hoc requirements of residents or their
nominated representative.
B7 Authorised access to records
93(4) The disability service provider must, upon request, give access to the
resident’s financial records held by the disability service provider to the resident or
the resident’s guardian or the resident’s administrator.
Penalty: 60 penalty units
Policy application
1. All disability service providers must establish a culture that supports making
financial records accessible and introduce a means of doing so in a way that
protects the privacy and confidentiality of other residents’ records.
2. Disability service providers must provide access to the relevant source
documents and financial records within a reasonable period in response to a
request. Depending on the nature of the request, it may need to be made in
writing to the disability service provider.
3. Quite often guardians or nominated representatives request details of household
expenses and other costs that are recouped from residents. Where these
expenditures are not part of the residential charge, access to these records
should be made available when requested.
B8 Investment of trust funds
S94 The Secretary and disability service provider may invest any money held on
behalf of a resident that is not immediately required for use by the resident. Money
may be invested in any manner in which money may be invested under the Trustee
Act 1958.
Rights and accountability: Management of money policy (April 2010)
15
Policy application
1. Residents’ funds can be pooled for investment purposes. Management is
responsible for ensuring that adequate resident funds are available to meet cash
flow requirements.
2. Investments must be consistent with the requirements of the Trustee Act 1958.
Please refer to Part 1-Investments of the Trustee Act.
3. The Secretary and the disability service provider must have a financial system
that tracks and manages the investment returns of these funds. This includes a
transparent methodology for the calculation of an equitable share of investment
income earned and credited back to the individual resident’s trust account. This
should be documented in the provider’s policy on the management of residents’
funds and advice provided to residents, guardians and nominated
representatives.
4. A disability service provider may charge an administration fee for maintaining
the trust account. Any fees and charges need to be transparent and reasonable.
Fees and charges should not exceed financial industry charges for equivalent
financial service provision. Residents must be advised of these charges before
they are automatically deducted from their account. These fees and charges
should be included in the provider’s policy for management of residents’ funds.
B9 Limit on resident funds held in trust
S95 The amount standing to the credit of a resident in that person’s trust account
must not exceed the prescribed amount in regulation, which is $5,000. If the
amount exceeds the prescribed amount, the Secretary or the disability service
provider must arrange for the person, or the person’s representative, to be advised
to invest the money in an appropriate manner.
Policy application
1. The disability service provider must ensure that there are adequate processes
and financial systems in place to identify when funds held are in excess of the
prescribed amount.
2. Processes should also be developed to allow the person or their administrator or
guardian to be notified of funds above the prescribed amount. These should
include arrangements for these funds to be returned to allow the resident,
administrator or guardian to invest them in an appropriate manner.
3. A disability service provider may choose to adopt a lower maximum threshold.
As an example, it is recommended department-managed services take action
when funds reach $3,000 to ensure they do not accrue to the $5,000 regulated
amount.
B10 Trust money must be paid when person leaves
S96 When a resident ceases to reside in a residential service, the Secretary or
disability service provider, as applicable, must pay all money standing to the credit
of the individual in the residents’ trust fund or any trust account to the person or
their representative.
Policy application
The Secretary or the disability service provider must ensure adequate processes are
in place to identify funds attributable to an individual and reconcile all records in
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relation to that individual to allow the return of funds to the resident, administrator
or guardian within a reasonable period of time of departure, not exceeding 20
working days.
B11 Residents’ trust fund – Departmental-managed
residential services2
S91(1) The residents’ trust fund (RTF) established under Section 45 of the
Intellectually Disabled Persons’ Services Act 1986 is continued under the Act.
S92 Funds attributable to an individual, including all income earned, must be paid
into the residents’ trust fund as soon as practicable.
Policy application
All residential services managed by the department will pay all relevant funds into
the residents’ trust fund. Management is to ensure that departmental staff involved
with residents’ money are aware of, and comply with, the requirements of all
sections of this part of the Act.
2
The provision of outreach services does not fall under the definition of a residential service within the
context of the Act. Section B is, therefore, not applicable to outreach services.
For department-managed services, this means that the residents’ trust fund and the client
expenditure recording system must not be used to manage funds for individuals receiving outreach
support.
All support providers should consider the management of an individual’s funds within the service
planning context mindful of the individual’s needs, financial management skills and the ongoing
development of these skills. This should include identifying situations where staff may be required to
handle money on an individual’s behalf and implementing an appropriate level of accountability that is
not administratively burdensome. Handling money may incorporate activities such as using cash or
having access to bank account details, and account access cards.
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Related policies, procedures and legislation
Related policies and procedures and legislation for strengthening specific rights for
persons residing in residential services in relation to the management of money
include:
• Charter of Human Rights and Responsibility, 2006
• Financial Management Act 1994
• Department of Treasury and Finance : Fact Sheet, Automatic Indexing of Fees
and Fines
• Guardianship and Administration Act 1986
• Victorian Civil and Administrative Tribunal Act 1998
• Trustee Act 1958
• Undue Financial Hardship Guidelines
• Department of Human Services Information Sheet No 18: Management of money
policy – For residents, guardians and administrators
• Client Expenditure Recording System (CERS) (Department of Human Services
Disability Services policy)
• Disability Services Planning Policy
• Quality Framework for Disability Services in Victoria
• Disability Services Division Policy and Funding Plan
Contacts
Should there be any questions regarding this policy, please contact:
The Legislation Team
Disability Services Division
Department of Human Services
8/50 Lonsdale Street, Melbourne, VIC, 3000
email: disability.legislation@dhs.vic.gov.au
Or, for further information and advice contact:
• Your regional Partnership and Services Advisor (PASA) for community service
organisations.
And for department-managed residential services, contact:
• Regional CERS Officers; or
• Divisional Client Funds Management Team.
Approved
Director, Planning and Resource Management
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