How to Calculate and Record Unspent Funds
When a consumer transfers to you after 27 February 2017, they will most likely bring the balance of their “unspent funds” with them. Having said that, it may take up to 56 days to receive the details from the previous provider and another 14 days to receive the funds, as permitted in the legislation.
The previous provider has to provide you with a breakdown of how much the consumer and government have each contributed so you can refund the correct balances when the consumer exits your service.
EXAMPLE OF HOW TO CALCULATE THE REFUND AMOUNTS
Bill has been with you for 1 year on a Level 2 package and is now exiting home care permanently. He has an unspent funds balance of $2,000 after deducting your exit fee.
In order to provide this information, you will need to keep a running balance of the contributions made by the consumer and government from the commencement/transfer in date. Therefore, it is crucial that you have appropriate systems to record this information.
Remember the balance of the consumer’s “Unspent funds” is a liability to your organisation as you have received the funds in advance to be spent on the consumer, therefore if unspent, those funds have to be paid back once the consumer exits your service.
If you need advice on how to set up your home care service, or to arrange a demonstration of Care Collaborator – specialist cloud based software developed to complete the on-boarding process at the initial consumer visit – please contact Debra Ward at Care Collaborator via the web page: www.carecollaborator.com.au, email email@example.com or mobile 0438 020 728.