TN 15 (12-98)

GN 00605.222 How to Evaluate Payee Response That A Dedicated Account Was Never Established

A. INTRODUCTION

This section explains that FO personnel must first determine how the system identified the dedicated account as they review the payee's response that a dedicated account was never established. It also provides instructions when SSA released past-due benefits to a non-dedicated account in error.

B. PROCEDURE

1. Determine System Selection

Review the DACT and PMTH segments of the SSR and determine if the dedicated account was identified based on: (1) the dedicated account balance field; (2) an “X, 1, 2, or F” in pay flag 5; (3) the payment amount (See GN 00605.205.B.1.).

2. Selection Based on Balance in Dedicated Account

When the system determines a dedicated account based on the dedicated account balance field, this indicates that the FO previously monitored the account and, at that time, there were funds remaining in the account. When the payee response indicates that a dedicated account was never established, compare SSA's records with those of the payee.

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

  • Review the payee's financial records and receipts as appropriate.

  • Follow GN 00605.223 if deposits were made into the dedicated account.

  • Follow GN 00605.224 if funds were used from the dedicated account.

  • Follow GN 00605.225 to detect unreported expenditures from, and/or deposits into, the dedicated account.

  • Follow GN 00605.230 with required PE actions to update the SSR.

3. Selection Based on Pay Flag 5 Indicator

When the system determines a dedicated account based on an “X, 1, 2, or F” in pay flag 5, this indicates that FO personnel paid the past-due benefits into a dedicated account. When the payee response indicates that a dedicated account was never established, review the file which documents dedicated account financial information (See SI 02101.010.C.2.) and follow the instructions described in GN 00605.222B.2. above.

4. Selection Based on Payment Amount

When the system determines a dedicated account based on the payment amount and the FO determines that the past-due benefits met the dedicated account criteria, it is assumed that the benefits were paid into a dedicated account but the FO failed to establish the “X, 1, 2, or F” in pay flag 5. Review the file which documents dedicated account financial information (See SI 02101.010.C.2.).

  1. If the payee response indicates that a dedicated account was never established, and the FO has no record of establishing the account, and the payee does not request that an account be established, follow the instructions in GN 00605.230.B.1., DI Diary Set-No Dedicated Account Exists. FOs are required to obtain an annual accounting SSA-623.

  2. If the payee response indicates that SSA released the past-due benefits into a non-dedicated account (i.e., paper check, or checking/savings account) even though the past-due benefits met the dedicated account criteria, and the FO has no record of establishing the account, and the payee requeststhat a dedicated account now be established, the FO should take the following actions:

    • Determine the amount of past-due benefits paid and the unspent balance; and

      NOTE: The payee may be holding the exact amount or any portion thereof.

    • Notify the payee of the dedicated account requirements following the instructions in SI 02101.010.F.; and

    • Obtain proof from the payee that the dedicated account has now been established; and

    • Record the amount of money deposited by the payee into the dedicated account in the dedicated account balance field following the instructions in SM 01301.637 so that the account can be identified for future monitoring.

    • Follow GN 00605.230.B.2.b. - GN 00605.230B.2.d. with required PE actions to update the SSR.