1.A.3.b. Accounting system

Rule

Use of an accounting system which documents all resident financial transactions such as fees, payments and deposits.

• Ability to produce clear statements of a resident’s financial dealings with the operator within reasonable timeframes.

• Accurate recording of all resident charges and payments.

• Payments made by 3rd party payers are noted.

Levels

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

Guidance

• What type of accounting systems are capable of meeting all of the requirements under this rule?

  • Accounting software – Most accounting software programs (e.g. Quickbooks) are capable of meeting all of the requirements, but just because a provider paid for the software does not mean that they have the staff capacity or accounting policies and procedures to meet this rule.

  • Paper system – Smaller recovery residence provider may use a paper accounting and be able to meet the standard, if they have the skill and processes in place. Because accounting software is efficient and relatively low in price, it is unlikely that recovery residences are going to use a paper journal system.

• Who are 3rd party payers and why must this be noted in the accounting system?

  • 3rd party payers include but are not limited to, parents, vouchers, and insurance reimbursement. It should be tracked to ensure residents are not overcharged and that providers are not “double dipping”. This is also need to appropriately issue refunds and to whom.

Evaluation

• Does the recovery residences use an accounting system which

  • Documents all resident financial transactions (fee, payments and deposits)? AND

  • Is capable of producing clear statements of a resident’s financial dealings with the operator within reasonable timeframes? AND

  • Does it accurately record of all resident charges and payments? AND

  • Are payments made by 3rd party payers are noted?

Evidence

• Policies and procedures

References