State of Michigan Nursing Home
Administrator UPDATED ACTUAL Exam
Questions and CORRECT Answers
PATIENT TRUST FUNDS - CORRECT ANSWER -
1) Policy: - CORRECT ANSWER - 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: - CORRECT ANSWER - 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 - CORRECT ANSWER - 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.
Account must be closed and balance sent to resident within 3 DAYS OF DISCHARGE.
Access to Funds - CORRECT ANSWER -
4) Financial records: - CORRECT ANSWER - not less than two (2) hours during normal
business hours.
5) Petty Cash: - CORRECT ANSWER - during all normal business hours.
,Accounts - CORRECT ANSWER -
6) Funds: - CORRECT ANSWER - Cannot be CO-MINGLED with any other facility funds
(Can with Residents')
7) Interest Bearing Accounts: - CORRECT ANSWER - 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: - CORRECT ANSWER - 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 - CORRECT ANSWER - Written receipt from new owner
acknowledge receipt of the funds for safeguarding.
10) Surety Bond: - CORRECT ANSWER - Not LESS than $2,000.00 or 125% of the previous
year's patient trust funds average balance held, whichever is greater.
Michigan State Plan For Long Term Care - CORRECT ANSWER -
11) Department of Community Health (MDCH or DCH) - CORRECT ANSWER - DCH is
responsible for the Medicaid Program under contract to the federal agency named Centers for
Medicare and Medicaid Services (CMS).
MDCH also contracts with other departments and agencies to provide specific services.
, 12) Medical Services Administration (MSA) - CORRECT ANSWER - This agency, under
authority of MDCH writes policy, acts as fiscal intermediary, designs categorical reimbursement
programs, audits and authorizes facility-specific reimbursement rates.
13) Bureau of Health Systems: DCH - CORRECT ANSWER - has this bureau under its
department for oversight of the quality of care within nursing homes through the certification
process.
The actual certifying agency is CMS. This is accomplished through the surveys and inspections.
14) Department of Community Health, Bureau of Construction Codes, Office of Fire Safety. -
CORRECT ANSWER - DCH contracts with Office of Fire Safety to conduct the Life Safety
Code portion of the survey.
15) Michigan Department of Human Services (DHS): - CORRECT ANSWER - DCH contacts
with DHS who determine an individuals Medicaid eligibility and "co-payment" responsibility.
DHS utilized the local offices for direct contract with applicants.
16) Bureau of Health Professions: DCH - CORRECT ANSWER - Has this bureau under its
department for oversight and licensing of Nursing Home Administrator (NHA)
17) Michigan Department Community Health - CORRECT ANSWER - This Department
contracts directly with the federal agency CMS and as such is designated responsibility for Title
XIX of the Social Security Act.
Currently this program is 56% federally funded and 44% state funded.
18) Medical Service Administration (MSA) - CORRECT ANSWER - itself handles two
primary aspects of the program POLICY AND REIMBURSEMENT.
Medicaid Policy - CORRECT ANSWER -
Administrator UPDATED ACTUAL Exam
Questions and CORRECT Answers
PATIENT TRUST FUNDS - CORRECT ANSWER -
1) Policy: - CORRECT ANSWER - 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: - CORRECT ANSWER - 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 - CORRECT ANSWER - 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.
Account must be closed and balance sent to resident within 3 DAYS OF DISCHARGE.
Access to Funds - CORRECT ANSWER -
4) Financial records: - CORRECT ANSWER - not less than two (2) hours during normal
business hours.
5) Petty Cash: - CORRECT ANSWER - during all normal business hours.
,Accounts - CORRECT ANSWER -
6) Funds: - CORRECT ANSWER - Cannot be CO-MINGLED with any other facility funds
(Can with Residents')
7) Interest Bearing Accounts: - CORRECT ANSWER - 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: - CORRECT ANSWER - 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 - CORRECT ANSWER - Written receipt from new owner
acknowledge receipt of the funds for safeguarding.
10) Surety Bond: - CORRECT ANSWER - Not LESS than $2,000.00 or 125% of the previous
year's patient trust funds average balance held, whichever is greater.
Michigan State Plan For Long Term Care - CORRECT ANSWER -
11) Department of Community Health (MDCH or DCH) - CORRECT ANSWER - DCH is
responsible for the Medicaid Program under contract to the federal agency named Centers for
Medicare and Medicaid Services (CMS).
MDCH also contracts with other departments and agencies to provide specific services.
, 12) Medical Services Administration (MSA) - CORRECT ANSWER - This agency, under
authority of MDCH writes policy, acts as fiscal intermediary, designs categorical reimbursement
programs, audits and authorizes facility-specific reimbursement rates.
13) Bureau of Health Systems: DCH - CORRECT ANSWER - has this bureau under its
department for oversight of the quality of care within nursing homes through the certification
process.
The actual certifying agency is CMS. This is accomplished through the surveys and inspections.
14) Department of Community Health, Bureau of Construction Codes, Office of Fire Safety. -
CORRECT ANSWER - DCH contracts with Office of Fire Safety to conduct the Life Safety
Code portion of the survey.
15) Michigan Department of Human Services (DHS): - CORRECT ANSWER - DCH contacts
with DHS who determine an individuals Medicaid eligibility and "co-payment" responsibility.
DHS utilized the local offices for direct contract with applicants.
16) Bureau of Health Professions: DCH - CORRECT ANSWER - Has this bureau under its
department for oversight and licensing of Nursing Home Administrator (NHA)
17) Michigan Department Community Health - CORRECT ANSWER - This Department
contracts directly with the federal agency CMS and as such is designated responsibility for Title
XIX of the Social Security Act.
Currently this program is 56% federally funded and 44% state funded.
18) Medical Service Administration (MSA) - CORRECT ANSWER - itself handles two
primary aspects of the program POLICY AND REIMBURSEMENT.
Medicaid Policy - CORRECT ANSWER -
