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State of Michigan Nursing Home Administrator Exam
Questions with Detailed Verified Answers
1) Policy: Ans: ✓ ✓ ✓ Must have a policy.
May state that the facility will not handle monies in excess of $5,000.00.
The facility may charge a reasonable fee not to exceed the ACTUAL COST of providing service.
2) Required Printed Information: Ans: ✓ ✓ ✓ This must be given resident upon admission.
A statement that the facility will handle personnal funds if no other person is available.
Periodic statement of accounts (Minimum: Quarterly)
3) Procedure: American Institute of CPA Ans: ✓ ✓ ✓ Quarterly statements including all activity, (A-
H) in easily readable form.
Written account of all personal funds held in trust must be sent to the executor, administrator, rep
payee or next of kin within 10 DAYS OF THE DEATH OF A PATIENT.
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Account must be closed and balance sent to resident within 3 DAYS OF DISCHARGE.
4) Financial records: Ans: ✓ ✓ ✓ not less than two (2) hours during normal business hours.
5) Petty Cash: Ans: ✓ ✓ ✓ during all normal business hours.
6) Funds: Ans: ✓ ✓ ✓ Cannot be CO-MINGLED with any other facility funds (Can with Residents')
7) Interest Bearing Accounts: Ans: ✓ ✓ ✓ May keep up to $200.00 in a non-interest bearing
account of petty cash fund.
Money in excess of $200.00 shall be deposited in an interest bearing account within 15 days of the
date the $200.00 minimum is exceeded.
8) Designation For Patient Unable To Handle Own Funds: Ans: ✓ ✓ ✓ Facility notifies the Family
Independence Agency, Adult Protective Services in writing when a mentally incompetent patient
has no one to act on his behalf.
9) Sale Or Transfer of Ownership Ans: ✓ ✓ ✓ Written receipt from new owner acknowledge
receipt of the funds for safeguarding.
10) Surety Bond: Ans: ✓ ✓ ✓ Not LESS than $2,000.00 or 125% of the previous year's patient trust
funds average balance held, whichever is greater.
© Get it right 2025 Getaway - Stuvia US All rights reserved
State of Michigan Nursing Home Administrator Exam
Questions with Detailed Verified Answers
1) Policy: Ans: ✓ ✓ ✓ Must have a policy.
May state that the facility will not handle monies in excess of $5,000.00.
The facility may charge a reasonable fee not to exceed the ACTUAL COST of providing service.
2) Required Printed Information: Ans: ✓ ✓ ✓ This must be given resident upon admission.
A statement that the facility will handle personnal funds if no other person is available.
Periodic statement of accounts (Minimum: Quarterly)
3) Procedure: American Institute of CPA Ans: ✓ ✓ ✓ Quarterly statements including all activity, (A-
H) in easily readable form.
Written account of all personal funds held in trust must be sent to the executor, administrator, rep
payee or next of kin within 10 DAYS OF THE DEATH OF A PATIENT.
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Account must be closed and balance sent to resident within 3 DAYS OF DISCHARGE.
4) Financial records: Ans: ✓ ✓ ✓ not less than two (2) hours during normal business hours.
5) Petty Cash: Ans: ✓ ✓ ✓ during all normal business hours.
6) Funds: Ans: ✓ ✓ ✓ Cannot be CO-MINGLED with any other facility funds (Can with Residents')
7) Interest Bearing Accounts: Ans: ✓ ✓ ✓ May keep up to $200.00 in a non-interest bearing
account of petty cash fund.
Money in excess of $200.00 shall be deposited in an interest bearing account within 15 days of the
date the $200.00 minimum is exceeded.
8) Designation For Patient Unable To Handle Own Funds: Ans: ✓ ✓ ✓ Facility notifies the Family
Independence Agency, Adult Protective Services in writing when a mentally incompetent patient
has no one to act on his behalf.
9) Sale Or Transfer of Ownership Ans: ✓ ✓ ✓ Written receipt from new owner acknowledge
receipt of the funds for safeguarding.
10) Surety Bond: Ans: ✓ ✓ ✓ Not LESS than $2,000.00 or 125% of the previous year's patient trust
funds average balance held, whichever is greater.
© Get it right 2025 Getaway - Stuvia US All rights reserved
