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Registration Number: {{org_field_registration_no}}

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Managing Service User Finances Policy

1. Purpose

The purpose of this policy is to ensure that service users’ financial affairs are managed responsibly, transparently, and in their best interests at {{org_field_name}}. This policy outlines how we safeguard service users from financial exploitation, ensure compliance with legal and regulatory requirements, and promote financial independence wherever possible.

This policy aligns with:

• The Regulation and Inspection of Social Care (Wales) Act 2016, which mandates proper financial management and safeguards against exploitation​.
• The Social Services and Well-being (Wales) Act 2014, which supports the rights of individuals to manage their finances independently whenever possible.
• The Mental Capacity Act 2005, which provides a legal framework for supporting service users in financial decision-making.
• The Regulated Services (Service Providers and Responsible Individuals) (Wales) Regulations 2017, which require appropriate financial safeguards​.
• Care Inspectorate Wales (CIW) guidance, which emphasises financial accountability in social care settings​.

2. Scope

This policy applies to:

• All staff members, including care staff, administrators, and finance personnel.
• Service users, ensuring their financial rights, independence, and safeguarding.
• Service users’ representatives, including family members, advocates, and legal appointees.
• External agencies, including local authorities, the Office of the Public Guardian, and CIW.

The policy covers:

• Management of service user finances, including safeguarding and best interests.
• Access and security of funds, including bank accounts and petty cash.
• Financial decision-making and mental capacity considerations.
• Audit and monitoring procedures, ensuring transparency and accountability.

3. Principles of Managing Service User Finances

3.1. Promoting Financial Independence and Choice

At {{org_field_name}}, we are committed to promoting service users’ autonomy and control over their finances. This means:

• Encouraging service users to manage their own money whenever possible, providing support only where necessary.
• Respecting financial decisions made by service users who have the mental capacity to do so.
• Providing guidance and assistance to service users who require help managing their finances.

We ensure that any involvement in financial management is only undertaken with the service user’s consent unless a legal order (e.g., Power of Attorney or Deputyship) is in place.

3.2. Safeguarding Against Financial Abuse

Financial abuse can occur through fraud, coercion, misuse of funds, or unauthorised transactions. To prevent this, we:

• Conduct financial risk assessments for service users who need financial assistance.
• Implement strict authorisation procedures for handling service users’ money.
• Monitor financial transactions, ensuring funds are used appropriately.
• Encourage the use of independent advocates where service users require additional support.
• Report any suspicions of financial abuse immediately under the Safeguarding Policy​.

All staff receive mandatory training on recognising and preventing financial abuse.

3.3. Mental Capacity and Financial Decision-Making

If a service user’s capacity to manage their finances is in question, we:

• Conduct a Mental Capacity Assessment in line with the Mental Capacity Act 2005.
• Follow best interests decision-making procedures when the service user lacks capacity.
• Work with Deputies, Power of Attorney holders, and Independent Advocates to ensure decisions are made lawfully.
• Ensure financial decisions are documented and reviewed regularly.

If a service user regains capacity, they will be supported in resuming control of their finances.

3.4. Handling Cash and Personal Belongings

We ensure service users’ cash and valuables are stored securely by:

• Keeping small amounts of personal cash in locked safes, accessible only by authorised personnel.
• Logging all deposits and withdrawals, with two staff signatures for verification.
• Discouraging staff from handling large amounts of cash on behalf of service users.
• Providing receipts for all transactions conducted on behalf of the service user.

Any financial transactions made by staff must be authorised by the Registered Manager and recorded in the service user’s financial record.

3.5. Banking and Financial Transactions

If a service user requires assistance with banking, we:

• Support them in maintaining their own bank account wherever possible.
• Ensure that staff do not become signatories on service users’ bank accounts.
• Arrange Direct Debits or standing orders for regular payments, reducing the need for cash handling.
• Never withdraw or transfer money from a service user’s account without written authorisation.

We encourage family members or legal representatives to oversee significant financial transactions.

3.6. Financial Auditing and Compliance

To ensure full transparency and accountability, we:

• Conduct monthly internal audits of all service user financial records.
• Ensure receipts and logs are reviewed by management.
• Submit annual financial reports for external audits where required.
• Report any discrepancies or concerns immediately to CIW and relevant authorities​.

3.7. Service User Charges and Fees

All charges, care fees, and additional costs must be:

• Clearly explained in the service user’s contract.
• Transparent, fair, and regularly reviewed.
• Not deducted from service user funds without consent.

Any changes to charges must be communicated in writing to the service user and/or their representative.

3.8. Gifts, Donations, and Conflicts of Interest

To maintain ethical financial practices, we ensure:

• Staff do not accept personal gifts or money from service users.
• Service users are not pressured to give money to staff or other individuals.
• Any gifts or donations are declared and recorded, ensuring transparency.

Any concerns regarding financial conflicts of interest must be reported immediately to the Registered Manager.

4. Managing Service User Finances Efficiently

4.1. Leadership and Accountability

• The Registered Manager oversees compliance with all financial policies.
• Finance staff and care teams follow procedures for managing service users’ money.
• Regular team meetings and supervision ensure staff are confident in financial procedures.

4.2. Staff Training and Awareness

• Mandatory training on financial management and safeguarding is provided to all staff.
• Refresher courses ensure staff remain up to date with legal and policy changes.
• Case studies and real-life scenarios help staff recognise financial risks and abuse.

4.3. Monitoring and Continuous Improvement

• Quarterly audits identify trends, discrepancies, or risks.
• Incident trends are reviewed to identify areas for improvement.
• Service user and family feedback is used to refine procedures and enhance financial safeguards.
• CIW inspections and external audits provide additional oversight​.

5. Related Policies

This policy is supported by:

• CHW11 – Safe Care and Treatment Policy
• CHW13 – Safeguarding Adults from Abuse and Improper Treatment Policy
• CHW16 – Health and Safety at Work Policy
• CHW18 – Risk Management and Assessment Policy
• CHW24 – Management of Accidents, Incidents, and Near Misses Policy
• CHW27 – Staff Supervision, Training, and Development Policy

6. Policy Review

This policy is reviewed annually, or sooner if there are changes in legislation, CIW guidance, or risk assessments. Updates are communicated to all staff, and additional training is provided as necessary.

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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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