Home Care Funding allocation
Now that you’ve received your first lot of funding from Medicare, how do you account for the funds in your books? Remember the funds belong to the consumer and you are just holding them on their behalf and managing their spending in accordance with the agreed budget.
You receive the funds in your bank account from Medicare and allocate as follows:
Dr Bank account
Cr CDC Unspent Funds (Balance Sheet - Liability account)
Then, as the consumer receives services, the following entries are made:
Dr CDC Unspent Funds (Balance Sheet – Liability account)
Cr Income (Profit & Loss account)
Consumer spending may include: Administration and Case Management fees, Internal & External service provision (Internal service provision includes all services provided by your staff while External service provision includes all contracted services such as other organisations’ carers/domestic staff, gardening services etc.).
At the end of each month, you should be able to match your consumers
“Unspent Funds” balance on their statements to the total you have in the “CDC Unspent Funds” account on the Balance Sheet.
If you are interested in seeing a demonstration of Care Collaborator – specialist cloud based software developed to complete the on-boarding paperwork including Home Care Agreement, Care Plan & Budget 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.