A payee must use dedicated account funds for the benefit of the child and only for any of the following expenses:

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  Medical treatment,

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  Education, and

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  Job skills training.

If related to the child’s impairment:

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  Personal needs assistance,

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  Special equipment,

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  Housing modification,

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  Therapy,

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  Rehabilitation, or

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  Other items and services related to the impairment.

A payee may not use dedicated account funds for:

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  Items or services not listed in GN 00602.140B.1 in this section;

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  Repayment of SSI overpayments, see GN 00602.140D; and

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  Basic maintenance costs (food, housing, clothing, and personal items) not related to the child’s impairment.

EMERGENCY EXCEPTION: SSA determines that, in emergency situations where the unavailability of dedicated account funds for basic living expenses may result in the child becoming homeless or malnourished, a payee may use dedicated account funds to prevent the child from becoming homeless or malnourished, if otherwise appropriate.

We must monitor a payee’s use of funds from the dedicated account. Therefore, we require a payee to keep records and receipts of all deposits to, and expenditures from, the dedicated account. In addition, the payee must submit an annual accounting report, SSA-6233, Representative Payee Report of Benefits and Dedicated Account, of the use of benefits and the activity of funds in the dedicated account. For information on the monitoring of payees with dedicated accounts, see GN 00605.200 through GN 00605.240. For use of dedicated account monitoring procedures see GN 00602.140C.2.

Misapplication refers to the use of dedicated account funds for non-permitted expenditures for the recipient. Misapplication occurs when a payee, or an individual who is in direct-payment, uses dedicated account funds for non-permitted expenditures or basic maintenance costs (unless the emergency exception in GN 00602.140B.1 in this section applies).

Misapplication differs from misuse in that misuse occurs when a payee uses funds for a purpose other than for the use and benefit of the recipient, while the misapplication of dedicated account funds, though not permitted, can benefit the recipient. For information on the misuse of benefits, see GN 00604.001.

If SSA determines that a payee misapplied funds, we will seek repayment from the payee for the misapplied amount on a dollar-for-dollar basis. For more information on misapplication, see GN 00602.150.

Approvals and denials of expenditure requests, as well as misapplication determinations for dedicated account funds, are initial determinations with appeal rights. For information on the procedures for misapplication appeals, see GN 00602.150D.3.

Dedicated account rules continue to apply until the funds become depleted or SSI eligibility terminates. This includes situations where an individual recipient attains age 18, continues to be eligible and goes into direct pay, or when a new payee is appointed.

A former payee must return conserved dedicated account funds to SSA for reissue to a new payee or to the recipient in direct payment. The new payee or recipient must establish a new dedicated account before SSA reissues the conserved dedicated account funds.

When eligibility terminates, treat any funds remaining in the dedicated account as conserved funds and follow GN 00603.055 and GN 00603.100.

Although it is not required for a payee to seek SSA approval before making a purchase, they may want to confirm that a purchase is permitted before making it. If a payee inquires about whether a planned purchase is permitted, FO staff should use their best judgement to decide on a case-by-case basis whether the expenditure relates to, results from, or would improve the child's condition. Remember that the payee has special insight into the needs of the child and why or how an item or service, other than medical treatment, education, or job skills training, relates to the child’s impairment.

Because each expenditure request is unique, FO staff should consider all requests carefully, and ensure that the payee has the opportunity to explain the connection between the expenditure and the child’s impairment.

The FO should take the following steps during the determination process:

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  Use the remarks segment of the Supplemental Security Record (SSR), Report of Contact page, or other mechanism to document the determination.

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  Remind the payee of record-keeping responsibilities, which include keeping all records and receipts for all dedicated account deposits and expenditures.

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  Inform the payee of annual accounting requirements.

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  Provide the payee with notice of the determination and appeal rights, see GN 00602.140H.

On an annual basis, payees must report expenditures from, and deposits to, dedicated accounts, see GN 00605.200 and GN 00605.215.

If you receive an allegation of misapplication or misuse, take the following steps:

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  Review records and receipts and determine if the expenditures are permitted according to GN 00602.140B.1. in this section. If the payee did not keep receipts, obtain a signed statement from the payee that explains the expenditures.

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  If the payee did not obtain SSA pre-approval before using the dedicated account funds, follow GN 00602.140B.1. and GN 00602.140C.1. in this section, to determine if we permit the expenditure.

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  If there is an allegation of misuse of dedicated account funds, follow the procedures in GN 00604.020.

If your review of the dedicated account reveals that the payee misapplied funds for items or services not permitted, follow the instructions in GN 00602.150.

REMINDER: Misapplication is not the same as misuse.

The payee requests approval to pay for computer software that enables a blind child to hear the keyed text. The software allows the child to use the computer and to keep up with the other children in their class.

Rationale for approval: The expenditure relates to the child’s blindness.

The payee requests approval for purchases of large quantities of gluten-free products for a child with celiac disease. Other residents in the group home do not commonly eat these foods.

Rationale for approval: The child could not eat a regular diet due to the impairment.

A parent payee requests approval from dedicated account funds for respite care expenses to enable them to shop and take care of personal business, and to provide a short break from caregiving responsibilities.

Rationale for partial approval: The expense provides care for the disabled child. Limit the expense approval to the actual cost of childcare (i.e., hourly wage of a nurse or skilled caregiver), and not the expenses associated with shopping.

A parent payee requests approval to pay an expense from dedicated account funds for a specially equipped van to accommodate the child’s wheelchair. The payee uses the van to transport the child to therapy sessions several times a week. In addition to providing proof of the treatment history, the payee must provide a letter from the child’s doctor indicating that the treatments will continue indefinitely.

Rationale for approval: These expenses enable the child to attend impairment related therapy sessions.

The payee requests reimbursement to sources that paid for the child’s medical expenses while the child’s SSI application was pending. The payee submits evidence of the expenses.

Rationale for approval: The repayment of debts for medical treatment, education, or job skills trainings, or other expenses that relate to the impairment is an appropriate expenditure.

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  A parent payee requests approval to pay for closing costs and the down payment on a used trailer and lot from dedicated account funds. The child’s previous home has a contaminated water supply and lead-based paint throughout the house. The local health department requires that the family leave the house as soon as possible.

Rationale for approval: Without the expenditure approval, the child and their family are most likely to become homeless. In addition, the substandard housing conditions could adversely affect the child’s health as it relates to the impairment.

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  A parent payee requests approval for moving expenses from an apartment to a rented home. The payee explains that the child has frequent, noisy outbursts, and as a result, the apartment manager is going to terminate the lease.

Rationale for approval: The termination of the lease is due to the autistic child’s outbursts.

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  A parent payee requests approval to pay for three months of past-due rent and utility bills. The payee is behind in their bills due to the child’s hospitalization and, as a result, the payee missed work. The period of past-due rent and utilities corresponds with the period of hospitalization. The landlord and utility company are now demanding payment.

Rationale for approval: The past-due debts relate directly to the child’s impairment related hospitalization. For information regarding paying debts and obtaining pre-approval, see GN 00602.030.

The payee requests approval to pay for attorney fees incurred in pursuit of the child’s SSI disability claim. We paid past-due benefits directly into the dedicated account; we did not pay the attorney prior to release.

Rationale for approval: Pursuit of the child’s disability claim incurred the attorney fees.

The payee requests approval to buy a new pair of shoes for the disabled child.

Rationale for denial: The shoes are not impairment related. The payee could receive approval if the child’s impairment requires orthopedic modifications. The payee needs to get verification from the vendor that the disabled child needs regular shoes as a base shoe for performing the required modifications.

A foster care agency payee asks for approval to repay the foster care parents for regular expenses, and for psychiatric treatment related to the child’s impairment.

Rationale for partial denial: The first part of this request does not relate to the child’s impairment. However, the psychiatric treatment is reimbursable due to its impairment relationship.

The disabled child has a Social Security overpayment due to a parent’s wages. The payee requests approval to pay the overpayment from the child’s dedicated account funds.

Rationale for denial: The overpayment does not relate to the child’s impairment.