California Nursing Home Administrator License Practice Exam

Where should resident funds and property held in safekeeping be maintained?

1. in a Florida banking institution

2. in any federally regulated banking institution

3. co-mingled with ALF's receipts

4. in a petty cash box kept on site available to the resident

The correct answer is: in a Florida banking institution

The appropriate way to maintain resident funds and property held in safekeeping is within a federally regulated banking institution. Keeping these funds in such an institution provides several advantages that ensure safety, compliance, and accessibility. Federally regulated banking institutions are subject to strict oversight and regulations designed to protect depositors. This means that resident funds are kept in a secure environment that minimizes the risks of theft, misuse, or mismanagement. Additionally, these banks typically offer protections such as insurance on deposits (e.g., through the FDIC in the United States), further safeguarding these assets. Maintaining funds in a reputable banking institution also promotes transparency and tracking of financial transactions, which is essential for managing residents' funds responsibly. It helps ensure that the operators of the nursing home can account for all funds accurately, which is crucial in upholding ethical and legal responsibilities toward residents. Keeping funds commingled with the facility's receipts or in a petty cash box on-site can lead to multiple issues, such as loss or misappropriation of funds, lack of oversight, and potential breach of legal obligations regarding residents' finances. Therefore, utilizing a federally regulated banking institution aligns with best practices in financial management within a residential facility.