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Chille,
To be accountable for his allowance, (to be spent on himself) receipts are advisable.
He should not be giving even small amounts away to you.
Is that what you mean?
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Chillie, who is the "they" you are referring? Do you mean Medicaid?
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Medicaid is a real stickler for every penny and it may be that the facility also needs to account for all monies to be sure there are no employees helping themselves. I highly advice keeping track to avoid Medicaid issues, if he is not on it now and needs to go on it in the future, you will need to provide a 5 year accounting of all his money, cash, assets, property etc.

You seem irritated by the request, if you are new on this journey, please learn now how to pick your battles with the people and facility that are caring for your dad. If he is receiving good care and treatment be thankful and focus on that when you get a request that seems ridiculous, so many rules for caregivers because they are caring for a vulnerable population. Double edge sword is how it feels.
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I am not the caregiver I am the daughter of the patient whom stays at a care center
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