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VB 00501.032: Selection, Mailing, and Control of Annual Accounting Forms

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  • Effective Dates: 06/30/2014 - Present
  • Effective Dates: 04/15/2018 - Present
  • TN 2 (02-05)
  • VB 00501.032 Selection, Mailing, and Control of Annual Accounting Forms
  • A. Process - Selection and Mailing
  • In July of each year, the CPS mails every representative payee who has served on behalf of an SVB beneficiary for at least 12 months an SSA-2001-F6 which must be completed and returned to the CPS.
  • B. Procedure - CPS Action
  • 1. Preparation of SSA-2001-F6
  • The CPS enters its return address in the block provided on page 1 of the SSA-2001-F6 instruction sheet.
  • The CPS completes the shaded areas on the top of the Representative Payee Report (SVB) indicating the payee's name and address, the beneficiary's name and SSN, the report period, the type of payee (TOP), the custody code (CC) and the guardianship code (G), if applicable. This information will help the CPS evaluate the payee's responses.
  • 2. Verification of Information
  • The CPS obtains a current query in order to confirm the accuracy of the information and to verify that no changes have occurred which would affect the beneficiary's continuing entitlement or the representative payee's suitability.
  • NOTE: Final accountings are requested as explained in VB 00501.031A.
  • C. Procedure - CPS Control of Accounting Form
  • The blocks titled, "1st Request" and "2nd Request" in the shaded areas on the top of the Representative Payee Report, indicate when the accounting forms were mailed to the payee.
  • 1. Initial Request
  • The CPS enters the date the initial SSA-2001-F6 was requested and diaries the request for 60 days.
  • NOTE: Although the Representative Payee Report instructs the payee to return the form within 30 days, the CPS diaries the case for 60 days to take into account foreign mailing time.
  • 2. No Response to Initial Request
  • If the diary expires and the accounting has not been received, the CPS mails a followup SSA-2001-F6 showing the date of that second request on the top of the form. The CPS diaries the followup request for an additional 30 days.
  • 3. No Response to 2nd Request
  • If the followup accounting form is not received within 30 days, the CPS requests the FSP or the nearest FO to contact the payee for completion of the accounting form. If necessary, that office will develop for a new payee. (See VB 00210.001-Claims Development Procedures, to determine the proper office.)
  • If the followup accounting form is not received within 30 days, the CPS requests the Federal Benefits Unit (FBU) or the nearest FO to contact the payee for completion of the accounting form. If necessary, that office will develop for a new payee. (See VB 00210.001-Claims Development Procedures, to determine the proper office.)
  • D. Procedure- Redirection of Benefit Payments
  • If the CPS, the FSP or the FO is unsuccessful in obtaining an annual accounting report from the representative payee, or in any case in which the payee fails to respond to a request for an accounting of expenditures when misuse is suspected, the CPS may redirect the beneficiary’s payment to the FSP or the FO address without making a change of payee.
  • If the CPS, the FBU or the FO is unsuccessful in obtaining an annual accounting report from the representative payee, or in any case in which the payee fails to respond to a request for an accounting of expenditures when misuse is suspected, the CPS may redirect the beneficiary’s payment to the FSP or the FO address without making a change of payee.
  • NOTE: Diary dates specified in these instructions below may be adjusted if the circumstances of an individual case warrant such action.
  • 1. Notification
  • Before exercising this option, the FSP or FO must first notify both the payee and the beneficiary (unless the beneficiary is an incompetent adult) by mail of the impending action and the reason for it. (the FSP, or the FO should send a courtesy copy to the CPS and diary for 21 days to alert the CPS to take redirection action as explained in VB 00501.032D.4.) The notification to the payee and beneficiary must:
  • Before exercising this option, the FBU or FO must first notify both the payee and the beneficiary (unless the beneficiary is an incompetent adult) by mail of the impending action and the reason for it. (the FSP, or the FO should send a courtesy copy to the CPS and diary for 21 days to alert the CPS to take redirection action as explained in VB 00501.032D.4.) The notification to the payee and beneficiary must:
  • * Identify the beneficiary for whom the payee receives funds;
  • * State the payee’s obligation under the law to provide an annual report of how funds were spent;
  • * Remind the payee of previous failed attempts by SSA to obtain an annual report;
  • * Warn the payee of the impending redirection of the benefit payment, including the cancellation of any existing direct deposit; and
  • * Advise that the redirection can be averted if the payee contacts the FSP or the FO within 20 days of the date of the notice to complete the outstanding payee accounting form.
  • 2. Example
  • A typical letter might read as follows:
  • As representative payee for [name of beneficiary], you are required by law to complete an accounting report for SSA detailing how you spent and/or saved the funds you received on [name of beneficiary]’s behalf. On [date initial SSA-2001-F6 was requested] and [date followup SSA-2001-F6 was requested] we sent you Form SSA-2001-F6 to complete. You have not responded to our attempts to obtain this report.
  • If We Do Not Hear From You
  • If you do not contact our office within 20 days from the date of this letter and make arrangements to complete the accounting form, the payment dated [date of payment that will be redirected to FSP or FO] for [beneficiary’s name] will be mailed to our office at: {FSP or Field Office name and address}. After that time you will have to come into the office to pick up the checks. If you receive payments on behalf of [beneficiary’s name] by direct deposit to a bank account, we will stop your direct deposit and begin mailing the beneficiary’s checks to our office. When you come into the office to receive the check, you must complete the accounting report. You should bring documentation such as cancelled checks, receipts or some other record showing how you spent funds on behalf of [beneficiary’s name].
  • If you do not contact our office within 20 days from the date of this letter and make arrangements to complete the accounting form, the payment dated [date of payment that will be redirected to FBU or FO] for [beneficiary’s name] will be mailed to our office at: {FBU or Field Office name and address}. After that time you will have to come into the office to pick up the checks. If you receive payments on behalf of [beneficiary’s name] by direct deposit to a bank account, we will stop your direct deposit and begin mailing the beneficiary’s checks to our office. When you come into the office to receive the check, you must complete the accounting report. You should bring documentation such as cancelled checks, receipts or some other record showing how you spent funds on behalf of [beneficiary’s name].
  • What You Need To Do
  • To prevent [beneficiary’s name]’s payments from being redirected to our office, you should contact us at {FSP or FO’s address & phone number} within 20 days to make arrangements to complete the accounting report.
  • To prevent [beneficiary’s name]’s payments from being redirected to our office, you should contact us at {FBU or FO’s address & phone number} within 20 days to make arrangements to complete the accounting report.
  • 3. Payee Contacts FSP or FO
  • 3. Payee Contacts FBU or FO
  • If the payee contacts the FSP or FO within 20 days, that office will:
  • If the payee contacts the FBU or FO within 20 days, that office will:
  • * Obtain a completed SSA-2001-F6 from the payee;
  • * FAX it to the appropriate CPS. (Also, mail the hard copy of the SSA-2001-F6.); and
  • * Make a determination regarding the continued suitability of the payee.
  • 4. Payee Does Not Contact FSP or FO
  • 4. Payee Does Not Contact FBU or FO
  • If the payee does not take action within 20 days to avert the redirection action, the FSP or the FO will alert the CPS to take action to redirect the payments.
  • If the payee does not take action within 20 days to avert the redirection action, the FBU or the FO will alert the CPS to take action to redirect the payments.
  • The CPS will input a change of address action, substituting the FSP or the FO’s own address and canceling any direct deposit data which may be in effect. The CPS should place a special message on the SSR to explain the reason for the action and to prevent a direct deposit sign-up by the payee before the reporting issue is resolved.
  • The CPS will input a change of address action, substituting the FBU or the FO’s own address and canceling any direct deposit data which may be in effect. The CPS should place a special message on the SSR to explain the reason for the action and to prevent a direct deposit sign-up by the payee before the reporting issue is resolved.
  • NOTE: To facilitate the possible future reinstatement of direct deposit after the payee reporting issue is resolved, the CPS should record the direct deposit data before canceling it. This information can be posted in Remarks or documented in the paper file.
  • E. Procedure- Handling Redirected Payments
  • 1. FSP and FO Action
  • 1. FBU and FO Action
  • FSPs and FOs that receive redirected checks should:
  • FBUs and FOs that receive redirected checks should:
  • * Ensure that incoming checks are not stamped “non-negotiable;”
  • * Maintain a record of the cases involved;
  • * Ensure that received checks are matched against the master list to prevent unauthorized additions or deletions;
  • * Establish a separate control on each check received on a Miscellaneous Money Control Record. See exhibit in GN 02401.050C. or develop a FSP or FO version of the form. For reasons of privacy, this version of the form must contain information for only one beneficiary;
  • * Keep checks in a secure cabinet. The employee releasing the check must initial the control record;
  • * Maintain the record for 3 years; and
  • * Establish reasonable measures to ensure proper beneficiary identification.
  • 2. Payee Visits FSP or FO to Receive Payment
  • 2. Payee Visits FBU or FO to Receive Payment
  • When the payee visits the FSP or the FO to receive the beneficiary’s check or reinstate direct deposit arrangements, that office will:
  • When the payee visits the FBU or the FO to receive the beneficiary’s check or reinstate direct deposit arrangements, that office will:
  • * Conduct a face-to-face interview;
  • * Obtain a completed Form SSA-2001-F6 from the payee;
  • * FAX the SSA-2001-F6 to the appropriate CPS (Also, mail the hard copy of the SSA-2001-F6); and
  • * Make a determination regarding the continued suitability of the payee. If a change of payee is not necessary, the FSP or the FO will alert the CPS to input a change of address action to allow the check to be delivered directly to the payee or if direct deposit is involved, reinstate previous direct deposit data.
  • * Make a determination regarding the continued suitability of the payee. If a change of payee is not necessary, the FBU or the FO will alert the CPS to input a change of address action to allow the check to be delivered directly to the payee or if direct deposit is involved, reinstate previous direct deposit data.
  • 3. Payee Does Not Pick Up Check
  • If the payee fails to pick up the check within 30 days from the date of the letter notifying him of the impending redirection action, the FSP or the FO will:
  • If the payee fails to pick up the check within 30 days from the date of the letter notifying him of the impending redirection action, the FBU or the FO will:
  • * Forward the unendorsed, title VIII check to the Department of the Treasury (DT) using the procedures in GN 02405.100. The trust fund code entered into DMS under Step 7 in those procedures should be “O”-other;
  • IMPORTANT: Forward title VIII unendorsed checks to: Department of the Treasury Financial Management Service Regional Financial Center P.O. Box 12599-0599 Kansas City, MO 64116-0599
  • * Develop for a new payee;
  • NOTE: It is the Agency’s policy to pay benefits even when a payee is being sought. Pending payee development, the beneficiary must be paid directly if at all possible. See GN 00504.105 for information on direct payment to incapable beneficiaries when further payee development is needed and GN 00504.110 for information on when the suspension of benefits is permitted. If payee development will not be resolved in a timely fashion, alert the CPS to cancel the redirection action and pay the beneficiary directly as explained above. If the beneficiary’s whereabouts are unknown, suspend (S08) pending development.
  • * Determine if a fraud referral to OIG is appropriate (GN 04101.010).
  • F. Procedure - Retention of Accounting Forms
  • The CPS must retain all completed payee accounting reports for six years after the last month of the report period. They may be filed in the claims folder or stored in a central location, but they must be retrievable. This is necessary in the event that the report must be reviewed for a misuse or fraud allegation.
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