Misapplication of the funds from a dedicated account is not an overpayment. Waiver
rules do not apply to the requirement to return misapplied funds because misapplication
is not an overpayment.
Misapplication is not misuse when the representative payee's use of the funds, while
not authorized or approved, did benefit the recipient.
If a payee does not manage funds in the best interests of the beneficiary, SSA must
conduct a suitability determination.
If SSA determines that an individual recipient who is in direct-payment misapplied
funds from their dedicated account, the misapplied funds can be repaid from SSI benefits
payable to the individual in an amount equal to the misapplied amount.
For more information on the remittance process, see GN 00602.150D.2.b. and MS 01103.001.