CHW207-Social Fund Management and Distribution Policy
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Registration Number: {{org_field_registration_no}}
Social Fund Management and Distribution Policy
1. Purpose
The purpose of this policy is to ensure the proper management, distribution, and oversight of the Social Fund at {{org_field_name}}, ensuring it is used ethically, transparently, and fairly for the benefit of all residents. The Social Fund exists to enhance the wellbeing, social engagement, and quality of life of residents by funding activities, entertainment, communal events, and special outings.
This policy aligns with the Regulation and Inspection of Social Care (Wales) Act 2016, ensuring that the fund is managed lawfully, equitably, and in line with best practices in care home financial governance. It also ensures compliance with safeguarding principles, preventing financial abuse or mismanagement, and guaranteeing that all financial decisions regarding the Social Fund are made in the best interests of the residents.
2. Scope
This policy applies to all individuals who benefit from or contribute to the Social Fund, including residents of {{org_field_name}}, staff members responsible for fund management and oversight, family members, donors, and other stakeholders who contribute to the fund, and external auditors and regulatory bodies, including CIW inspectors, who may review fund management for compliance.
The Social Fund is designated for collective resident enrichment and must be used exclusively for social, cultural, and recreational activities that enhance residents’ experiences. It is not intended for private financial assistance to individual residents unless a structured and approved process is followed in exceptional cases.
3. Principles of Social Fund Management
3.1 Purpose of the Social Fund
The Social Fund is used solely for initiatives that contribute to residents’ quality of life, including organising social activities such as live entertainment, exercise classes, and cultural events, funding outings such as day trips, restaurant visits, and excursions, purchasing communal items such as books, games, gardening supplies, or decorations that enhance communal areas, and supporting special celebrations such as birthdays, religious or cultural festivities.
The Social Fund cannot be used for routine operational expenses of the care home, items or activities that only benefit individual residents unless pre-approved, staff salaries or bonuses, or any expenditure that does not align with the social and recreational needs of residents. All spending decisions must align with the principles of fairness, inclusivity, and resident choice.
3.2 Transparency and Governance
To ensure proper governance, the Social Fund is managed with strict financial controls. A dedicated fund account is maintained separately from operational finances to ensure clear accountability. All transactions must be documented with supporting receipts and a clear audit trail, with quarterly financial reports reviewed by management and made available for residents and family scrutiny.
An annual independent audit is conducted to ensure compliance with financial regulations. This audit process ensures that all funds are used as intended and that there are no irregularities in fund distribution or management.
The Registered Manager is responsible for ensuring compliance with financial regulations, approving all fund expenditures, and reporting financial updates to CIW as part of quality assurance reviews. The manager must also ensure that residents and their representatives are informed of how the Social Fund is used and have an opportunity to contribute to decision-making.
3.3 Contribution to the Social Fund
The Social Fund may be funded through several sources, including voluntary resident contributions, family donations, fundraising activities such as raffles or charity events, and external grants specifically designated for resident wellbeing.
All contributions must be voluntary, and no resident should feel obligated to contribute. Family and external donations must be properly documented, and all fundraising events must be conducted transparently, with clear guidelines on how the funds will be used. Residents and their families must be informed of all fund sources and be provided with reports on fund utilisation.
3.4 Decision-Making Process for Fund Distribution
A Social Fund Committee oversees fund allocation and ensures fair distribution. The committee consists of resident representatives (where possible), a designated staff member responsible for fund administration, the Registered Manager or Deputy to ensure compliance with regulations, and a family representative where applicable.
The committee meets quarterly to review fund balances and approve upcoming expenditures, discuss new activity proposals from residents and families, and ensure fair and inclusive use of funds for all residents. All decisions are minuted and available for inspection by CIW. In cases where a resident is unable to participate in decision-making, their key worker or advocate will represent their interests.
Transparency in decision-making is a priority. All residents must be informed of committee decisions and have an opportunity to suggest activities or raise concerns about fund use. No decisions should be made without consultation, and all residents should benefit from the fund.
3.5 Resident Involvement and Choice
Residents are central to decision-making regarding Social Fund expenditures. Staff will ensure that all residents, including those with cognitive impairments, have an opportunity to express their preferences for social activities funded by the Social Fund.
Residents are encouraged to participate in group meetings where suggestions for activities or purchases are collected, and where possible, a voting system will be used to decide on significant expenditures. For residents who lack capacity to make financial decisions, the Mental Capacity Act guidelines will be followed, and decisions will be made in their best interests by their appointed advocate or the Social Fund Committee.
The care home will ensure that residents from diverse backgrounds and with varying needs can access activities funded by the Social Fund. Measures will be taken to ensure that the fund is used inclusively and does not disproportionately benefit certain individuals or groups.
3.6 Safeguarding Against Financial Misuse
To prevent financial abuse or mismanagement, strict financial controls are in place. No single individual has sole access to the Social Fund, and all transactions require dual authorisation. Cash transactions are minimised, and electronic records are maintained for transparency.
Any suspected misuse of funds must be reported immediately under the Whistleblowing Policy. Reports of financial misconduct or irregularities will be investigated, and appropriate action will be taken, including disciplinary measures if necessary.
The fund is audited annually, and financial records must always be available for inspection by CIW inspectors. Residents and their families have the right to request a summary of Social Fund expenditures at any time.
4. Responsibilities
4.1 Management Responsibilities
Management is responsible for maintaining accurate financial records of income and expenditures, ensuring funds are used exclusively for their intended purpose, conducting regular reviews and audits, and ensuring the Social Fund Committee operates fairly and transparently. Management must also ensure that all stakeholders, including residents and families, understand how the fund operates.
4.2 Staff Responsibilities
Staff members must facilitate resident engagement in fund-related decisions, ensure residents are informed about fund contributions and activities, support residents in expressing their preferences regarding fund use, and report any concerns about financial mismanagement or exclusion. Staff must also ensure that activities funded by the Social Fund align with residents’ needs and preferences.
4.3 Resident and Family Responsibilities
Residents and families may suggest activities and review fund records upon request. They are also responsible for ensuring that contributions to the fund are voluntary and made transparently. Families should encourage resident participation in decision-making and raise any concerns about fund use to management.
5. Related Policies
This policy should be read in conjunction with:
- Managing Service User Finances Policy
- Whistleblowing (Speaking Up) Policy
- Dignity and Respect Policy
- Communication and Engagement with Service Users and Families Policy
6. Policy Review
This policy will be reviewed annually or earlier if there are significant legislative changes or concerns regarding fund management. The Registered Manager is responsible for ensuring it remains compliant with CIW regulations and best practices.
Responsible Person: {{org_field_registered_manager_first_name}} {{org_field_registered_manager_last_name}}
Reviewed on: {{last_update_date}}
Next Review Date: {{next_review_date}}
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