TN 75 (09-24)

GN 00605.224 How to Evaluate Payee Responses About Use of Dedicated Account Funds

A. Introduction

This section explains how to review the payee's responses on the SSA-6233- BK about the use of benefits from the dedicated account.

B. Policy

1. Permitted Expenditures

A payee is allowed to use dedicated account funds for medical treatment, education or job skills training for the benefit of the child. Funds may also be used for the following, if they benefit the child and are related to the child's impairment: personal needs assistance; special equipment; housing modification; therapy or rehabilitation; and other items or services related to the individual's impairment. Attorney fees incurred in pursuit of the child's disability may be considered “impairment related.” SSA has determined that in emergency situations where the unavailability of dedicated account funds for basic living expenses may result in the child becoming homeless or malnourished, expenditures from the dedicated account may be used if they are otherwise appropriate. (See GN 00602.140C.2.b. for examples of permitted expenditures and GN 00602.140D for case specific examples.)

2. Expenditures Not Permitted

Payment for items or services not described above are not permitted. Basic maintenance costs (food, housing, clothing, and personal items) not related to the child's impairment may not be paid with dedicated account funds.

3. Misapplication of Benefits

Misapplication of benefits occurs when a payee used dedicated account funds for expenditures not permitted.

C. SSA-6233-BK - Dedicated Account Questions 7 A-B

Question 7A - Did you take any money out of the dedicated account during the report period? [ ]YES[ ]NO

Question 7B - Were these purchases for medical treatment, education, job skills training, or other purchases that benefit the beneficiary and relate to their impairment? [ ]YES[ ]NO If NO, please explain what you purchased and the amount of each purchase.

D. Procedure

This section explains how to evaluate the expenditures on the SSA-6233-BK, as they relate to the individual's impairment.

DECISION FACTOR: Any items or services not listed in GN 00602.140B.1 are not permissible expenditures. Payees have special insight into the needs of the beneficiary and how purchases relate to the beneficiary’s impairment. If the payee responds that they used dedicated account funds for permissible expenditures, accept this response unless there are indications suggesting that the expenditures were not permissible.

If the payee responds that they used dedicated account funds for expenditures that are not permissible, take the following steps:

  • Review the payee's explanation of what they purchased and the amount of each purchase.

  • Conduct a face-to-face interview with the payee whenever practical.

  • Review the payee's financial records and receipts to determine if the expenditure is permitted under GN 00602.140B.1. Ensure the payee has the opportunity to explain (or provide supporting evidence) why or how the expenditure (other than medical treatment, education or job skills training) relates to, results from, or improves the child's condition.

  • Follow the procedures for making a misapplication determination if your review of the dedicated account reveals that the payee misapplied funds for items or services not permitted. (See GN 00602.140B.3) If the payee misapplied all of the funds in the account, follow GN 00605.230B.3. with required PE actions to update the SSR.

  • Consider changing the payee or making direct payment if the payee did not use the dedicated account funds properly.

Note: 

FO personnel has the authority to ask the payee to provide a detailed explanation of what they purchased, including the amount of each purchase and how the item(s) benefit the beneficiary and relate to their impairment. Payees are required to report this information, if questioned.

E. References

  • GN 00603.025 Acceptable Types and Titling of Dedicated Accounts

  • GN 00602.140 Permitted Expenditures From Dedicated Accounts

  • GN 00602.150 Misapplication of Funds in a Dedicated Account


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0200605224
GN 00605.224 - How to Evaluate Payee Responses About Use of Dedicated Account Funds - 09/16/2024
Batch run: 09/16/2024
Rev:09/16/2024