With the annual prudential compliance statement due date fast-approaching, providers should ensure that their prudential compliance documents are up to date and reflect the new legislation that commenced on 1 July 2014.
Providers have been required to comply with the prudential standards in relation to accommodation bonds and pre 1997 entry contributions for many years. With the introduction of the new lump sum payments known as Refundable Accommodation Deposits ("RADs") and Refundable Accommodation Contributions ("RACs") on 1 July 2014, the Prudential Standards in the the Fees and Payments Principles (No 2) 2014 have been extended to apply to these.
This means providers should ensure that their prudential compliance documents adequately deal with the new types of lump sum payments including:
Refundable deposit/accommodation bond register
- Governance system
- Liquidity management strategy
- Disclosure statements.
Failing to adequately capture the new terminology in these documents may place providers in breach of their obligations under the Aged Care Act 1997.