Accommodation BondΒΆ

  • Provided the Treasury Note Yield rate table has been maintained the appropriate rate will be displayed. This may be edited to a lower value is desired. Otherwise the rate may be entered manually.

  • The number of months for which the transfer process will continue will be displayed. It may be edited. If you alter the answer to the question about leaving a residential care service to Yes you will be able to enter the number of months that a bond agreement was in place in the other home. When the agreement is processed the number entered here will be subtracted from the total number of months entered in the field above.

  • Set the Bond Type:

    • Normal means a Lump Sum payment only
    • Payment means a Periodic Payment only
    • Split means a combination of a Lump Sum and a Periodic Payment.

  • The next screen shows the Value Of the Bond, The Lump Sum Amount and the Lump Sum Equivalent. If the agreement is a Split type the value of the Lump Sum must be entered. The Lump Sum Equivalent is then the balance.

  • The next screen displays the Annual Retention, the Transfer Amount and the Periodic Payment Amount. Where a Bond is Split the Transfer Amount may be edited to a larger value provided that the total to be transferred is not greater than the Lump Sum Amount.

    Where an Agreement that involves a Transfer Retention [Transfer or Split Type] there is a peculiarity in the government regulation that shows up with the Wizard. This is perhaps best illustrated with an example.

    For a Bond with a total transfer amount of $13,500.00 the annual transfer amount would be $2,600.00. This gives rise to a monthly transfer of $216.67 which when rounded to the nearest five dollars as specified in the Residential Care Manual gives a monthly transfer amount of $215.00 and consequently an annual amount of $2,580.00. If the Residential Care Manual is followed the rounding is always to the nearest five dollars so under some circumstances the annual amount will be slightly greater than expected. If you are not happy with this you may adjust the Rounding Factor in Accommodation Agreement Parameters to suit your requirements.

  • Set the interval for any Periodic Payment. It will default to the setting in the Accommodation Payment Parameters. Transfers may be made at the beginning or the end of the month. The default setting is the beginning.

  • The next screen displays parameters set in the Accommodation Payment Parameters. Note that the Period Of Grace For Lump sum payments determines the number of months that should elapse before interest charges apply. Normally this will be 0 (zero).

  • The Lump Sum Payment schedule assumes that the Lump sum will be paid six months after the Start Date. You may edit this as required.

  • This screen summarises the details of the Bond Agreement. Note that you may back track and change any of the selections made now or at any time in the process. If you accept this screen a report will be displayed. Select the Print Icon to print the report.