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Accounting for Use of Funds

Excerpted from "Social Security Handbook". See the up-to-date, official Social Security Handbook at

1623. Accounting for Use of Funds

1623.1 How do representative payees account for their use of the beneficiary's funds?

An annual report form (Representative Payee Report) is sent to representative payees for them to explain how Social Security and/or SSI payments were used during the 12-month report period. Payees should keep records throughout the year so that they can provide an accurate accounting.

1623.2 Do State mental institutions receive this report form?

Although some State mental institutions receive this report form for each beneficiary, most State mental institutions are subject to a different monitoring process (see §1624).

1623.3 How is the representative payee's performance evaluated?

To help us assess the payee's performance, the report asks for information such as:

  1. Whether the beneficiary lived alone, or with the same person, or in the same institution during the report period;

  2. How the Social Security and/or SSI payments were used;

  3. How much of the benefit payments were saved and how the savings were invested; and

  4. Whether the payee was convicted of a felony during the report period.

1623.4 Does SSA request additional information?

Depending on the payee's responses, we may interview the payee, beneficiary, and custodian, if appropriate, and complete a more detailed report (Representative Payee Evaluation Report) in order to determine the continued suitability of the representative payee.

1623.5 Does SSA conduct any additional monitoring for organizational payees?

In addition to the annual report form required of all payees (except for State mental institutions), we visit certain organizational payees periodically and examine a sample of beneficiary records. This site visit program provides an opportunity for ongoing education about the payees' duties and responsibilities, and helps to improve the lines of communication between the organizations and SSA.

Last Revised: Aug. 2, 2007

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There are 2 Comments

If you choose or Social Security chooses a Representative Payee be very careful cause I notice with my sister funds they have been mishandle. Her payee decided to replace a entry door and screen which we were told $200.00 for installment. The Payee went on her own decided she would give him $375.00. When question she lie and stated first the doors cost more then orginally stated so we ask for reciepts nope the door was a bit cheaper then we thought. Then her excuse was he had to deal with us. Wrong she had no right to begin with to take upon herself to get someone to install and no right to paid more then he was suppose to get. When we finally did get the recipts guess what she still was short bu $74.00 So she can't add. Social Security feels we are in the wrong cause we reported it. Representative Payee has no authority to do things she has but to get Social Security to see it its hard and troublesome. So please be careful ask for a copy of the bank statements and please watch where your money is going.

Most parent's would not mind using the benefits in the proper manner, because it's not only assisting their child or children but the family as a whole. Some parent's think of thier childs benefits as a pay off for themselves, so they use their child's money to gamble, gamble, gamble and when it comes time for them to assist that child with something they don't have it because they gambled the money off and didn't win. Parents our children are not a payday for us they are a blessing. USE MONEY WISELY!!!!!!1

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