I have a question regarding trust accounts for long term care facilities, which are basically a holding account for residents' spending money. This should simply be a cash account for holding
We have an existing accounting software package that is basic AR, AP, GL, etc. We are trying to determine how to incorporate this into the software, whether it can somehow be accomplished in the existing software or whether to write a new module. Would anyone have an opinion on that?
Would such an account be part of the facility's balance sheet? Since there is neither ownership by nor benefit to the home, is the cash account considered an asset? Since this account contains money that is property of the facility residents and not the facility itself, is it required to report it on financial statements?
To me, it seems pretty simple, but I'm afraid that I might be missing something in the big picture. I sure don't want to hose it up for the facility.
Any comment on this situation will be deeply appreciated!