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HRD-84-34 1 (1984-05-18)

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The Honorable Claude Pepper
Chairman, Subcommittee on Health and
  Long-Term Care
Select Committee on Aging
House of Representatives

Dear Mr. Chairman:


Subject:


GAO Views on the Methodology Used in an SSA
Title II Study of Representative Payment
(GAO/HRD-84-34)


     In response to your July 8, 1983, letter and later discus-
sions with your staff, we are providing you with:

     --Our views on the methodology used in a recent Social
       Security Administration (SSA) study of representative
       payment in its title II, Old-Age, Survivors, and
       Disability Insurance (OASDI) program.

     --Information on the status of SSA's implementation of a
       representative payee accounting system.

     --Updated information regarding material given to you on
       June 8, 1982, pertaining to representative payment in
       12 federal cash benefit programs.

     We evaluated a recent SSA study which showed that represen-
tative payees misused2 beneficiaries' funds in less than I per-
cent of the cases reviewed. Although we noted flaws in the



'Representative payment is a procedure whereby a designated
  person receives funds for another person who is unable to
  manage his or her own funds.

  2SSA defines misuse as the misapplication or misappropria-
  tion of benefits which have been paid to a representative
  payee on condition that they be expended for the use and
  benefit of the entitled individual.


(105413)


UNITED STATES GENERAL ACCOUNTING OFFICE
           WASHINGTON, D.C. 20548


HUMAN RESOURCES
   DIVISION

     B-215109


MAY 18. 1984





    124439


12.4 T

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