1.A.2.h. Financial boundaries

Rule

Staff must never become involved in residents’ personal financial affairs, including lending or borrowing money, or other transactions involving property or services, except that the operator may make agreements with residents with respect to payment of fees.

Levels

This standard rule applies to all recovery residence levels of support.

Guidance

This rule helps maintain healthy, ethical and legal boundaries. It prevents conflicts of interest and exploitation. Please review the following for more clarification:

• In the context of this rule “other transactions” includes but is not limited to brokering, buying or selling items of value.

• In the context of this rule, “property” includes “real property”, which is land, real estate, buildings and other assets that are not movable as well as “personal property”, which includes tangibles (e.g. vehicles, furniture, boats, and collectibles) and intangibles (e.g. stocks, bonds, and intellectual property).

• Recovery residence providers are often pressured to manage residents’ money, if they lack or are perceived to lack the skills to manage their own finances. If an individual lacks the cognitive ability to manage their own finances, they may not have the cognitive ability to understand and agree to resident agreements and as such, they are not an appropriate fit for recovery residences. Note, financial services and money management is a highly regulated industry, and recovery residence providers must comply with state and federal requirements and laws, as per NARR Standard 1.A.2.d. Legal Compliance. Third party services, such as reloadable prepaid cards, have been developed to support residents and stay clear of violating laws.

• If the recovery residence incorporates Contingency Management (CM) into its program, it must do so in a manner that prevents financial exploitation.

Evaluation

• Is there a policy and procedure that prevents staff and the owner/operator from becoming involved in a resident’s personal financial affairs (e.g. lending money, borrowing money or Other transactions involving property or services), except for financial terms in the resident agreement?

• Is this policy and procedure communicated to:

  • Administrators (policy and procedure)

  • Staff (staff handbook)

Evidence

• Policy and procedure

• Staff handbook

References

• Contingency Management (CM)