Resident Trust Accounts and Liquid Assets Policy Template
Maintain the highest standards of financial accountability for resident funds held in trust — a structured policy covering account management, reconciliation, reporting, and resident rights.
Overview
Some residential aged care facilities hold money on behalf of residents in trust accounts, manage day-to-day spending for residents who cannot manage their own finances, or are appointed as financial administrators for residents without other support. These arrangements carry significant fiduciary obligations under the Aged Care Act 1997 and relevant state/territory legislation. This policy template establishes governance for all resident financial holdings managed by the facility, with a focus on transparency, accountability, and resident rights.
What This Policy Covers
- Circumstances under which the facility may hold resident funds
- Establishment and management of resident trust accounts
- Transaction authorisation and documentation requirements
- Regular account reconciliation procedures
- Provision of account statements to residents and representatives
- Annual reporting of trust account holdings
- Management of residents without financial representatives (public guardian referrals)
- Conflict of interest safeguards for staff handling resident funds
- Management of funds at death or discharge
- Audit and oversight of trust account management
Compliance Alignment
- Aged Care Act 1997 – Financial accountability obligations
- Charter of Aged Care Rights 2019 – Right 7 (financial matters)
- Aged Care Quality Standard 8 – Organisational Governance
- State/territory administration and guardianship legislation
- Australian Accounting Standards (for trust account reporting)
- Privacy Act 1988 (financial record confidentiality)
Why This Policy Matters
Financial mismanagement of resident trust funds — even where no fraud is intended — can result in ACQSC sanctions, media coverage, and criminal investigation. The SIRS also requires reporting of financial abuse incidents. A rigorous, documented trust account management policy creates the accountability trail needed to demonstrate fiduciary compliance and protect both residents and the organisation.
