The Aged Care Quality and Safety Commissioner, Janet Anderson PSM, tells us that an analysis of prudential information has shown that a proportion of residential care providers are not meeting their RAD refund obligations – and they will be taking action.
“The purpose of the campaign is to support providers to develop a better understanding of their obligations in refunding refundable deposits, including ensuring that providers comply with the Liquidity Standard when refunding refundable deposits,” the Commissioner said in a statement.
The campaign will be carried out before the end of 2020 and will involve a virtual assessment with a small sample of approved providers based on their previous Annual Prudential Compliance Statement (APCS) submissions.
Providers selected to participate in the audit will be notified in advance.
Ms Anderson says this assessment will determine if the providers are meeting their statutory obligations, including the timing of refunds, the amount of interest paid, and whether they have complied with their minimum stated liquidity and their Liquidity Management Strategy.
“If the assessment identifies that a provider has not complied with their responsibilities, the Commission may take administrative or enforceable regulatory action based on the level of risk,” she stated.
Where it is clear that COVID has impacted on a provider’s ability to meet its obligations, the Commissioner adds that they may refer the provider to the Department of Health to discuss available support options.
