COOLAMON SHIRE COUNCIL
ACCOMMODATION BOND
GOVERNANCE STANDARD
INTRODUCTI0N
On 1 October 2011, clearer and stronger arrangements were introduced to protect residents’ saving held in the form of accommodation bonds and entry contributions to residential aged care facilities through amendments to the Aged Care Act 1997 and the User Rights Principles 1997.
These arrangements included limiting the use of accommodation bonds to specified permitted uses that reflect the intended purposes for accommodation bonds – to provide a source of capital for investment in aged care infrastructure.
From 1 February 2012, approved providers holding accommodation bonds are required to have in place a governance system to manage accommodation bonds. The governance system must ensure that accommodation bonds are only used for permitted uses and that accommodation bond balances are refunded in accordance with legislative timeframes.
This policy has been developed to encompass the various legislative requirements of a governance standard.
LEGISLATIVE REQUIREMENTS
Aged Care Act 1997
User Rights Principles 1997
OPERATION
Organizational Approval Processes and Permitted Uses
Accommodation Bond Agreements
Coolamon Shire Council has delegated authority to the General Manager for the purposes of negotiating accommodation bonds with new residents or their representatives.
Coolamon Shire Council has delegated authority to the General Manager for the purposes of signing residents agreements and accommodation bond agreements on behalf of the Coolamon Shire Council.
It is the policy of Coolamon Shire Council to comply with the Aged Care Act 1997 in providing residents with a copy of their entry in the bond register, and within seven (7) days of a request, to residents or their representative(s).
Permitted uses
It is the policy of Coolamon Shire Council to use accommodation bonds in accordance with the permitted uses as identified within the Aged Care Act 1997 and User Rights Principles 1997.
Coolamon Shire Council has delegated authority to the General Manager for the purposes of authorising use of accommodation bonds on permitted uses.
Investment Management Strategy
Permitted Investments
It is the policy of Coolamon Shire Council to invest accommodation bonds only in permitted financial products as identified within the Aged Care Act 1997 and User Rights Principles 1997.
Investment Management
Coolamon Shire Council has a separate Investment Policy that provides a framework for the investing of Council’s funds at the most favourable rate of interest available at the time whilst having due consideration of risk and security for that investment type and ensuring that liquidity and legislative requirements are being met.
Responsible Personnel Training
It is the policy of Coolamon Shire Council to support responsible personnel in the delivery of their roles with respect to Accommodation Bond management through the provision of training on the Aged Care Act 1997 and the User Rights Principles 1997.
Delegated Authority
It is the policy of Coolamon Shire Council to maintain, at all times appropriate delegated authorities to ensure effective delivery of services while ensuring compliance with the legislation contained within the Aged Care Act 1997 and User Rights Principles 1997.
Accommodation Bonds
Accommodation Bond Register
It is the policy of Coolamon Shire Council to have in place an appropriate Accommodation Bond register as required by the Aged Care Act 1997 and User Rights Principles 1997.
Accommodation Bond Reporting
It is the policy of Coolamon Shire Council to report annually, and on request from residents or their representatives, on their Accommodation Bond balance and any deductions/interest charged as required by the Aged Care At 1997 and User Rights Principles 1997.
Accommodation Bond Refunds
It is the policy of Coolamon Shire Council to comply with the 14 day accommodation bond refund timeframe as contained in the Aged Care Act 1997 and User Rights Principles 1997.
Accommodation Bond Deductions
It is the policy of Coolamon Shire council to ensure that all deductions from Accommodation Bonds are agreed in writing with residents, or their representatives, on entry of as their circumstances change, in accordance with the Aged Care Act 1997 and User Rights Principles 1997.
REVIEW
This policy may be reviewed at any time or as required in the event of legislative changes. Unless otherwise required the policy will be reviewed at least once during a term of Council.
Version 1 Adopted: Council Meeting held 15 November 2012 (Minute No. 325/11/2012)
Coolamon Shire Council
GOV.01.08_Accommodation Bond Governance Standard 1