Representative Payees Serving Large Numbers of Beneficiaries Need Strong Internal Controls
Report Reference:
OIG Audit Report A-04-11-11146
Government Finding Summary
The Social Security Administration’s (SSA) Office of the Inspector General (OIG) determined whether fee-for-service (FFS) representative payees serving a large volume of Social Security beneficiaries had the resources and ability to fulfill their payee responsibilities.
They found numerous shortfalls for the FFS representative payees, including but not limited to:
The ratio of representative payees to beneficiaries was insufficient, ranging upwards of 1 representative payee for every 100 beneficiaries.
Many payees did not have accurate telephone numbers and addresses, some without any contact information as the representative payee failed to acquire the proper contact.
Some payees did not feel they had adequate controls over personal spending money provided directly to beneficiaries or provided to third parties on behalf of beneficiaries.
The OIG recommended that they instate more specific instructions on the role of representative payees about contacting, oversight and recordkeeping of beneficiaries.
Auxilium’s Interpretation
Our role as representative payees is to use our resources to not just process payments, but understand each beneficiary's need for their best interest. We pride ourselves in developing plans that are individual and unique to each beneficiary's needs.
As an organization, our priority is serving people in the community and doing so with reliable organizational procedures, staff and consistently overseeing the whole organization.
Although this report can sound like it is criticizing the work of payees, it actually highlights what over a decade the OIG found as weaknesses in the system. Now, nonprofits like Auxilium, can offer the proper care for beneficiaries. A representation of why an organization with a great system can protect vulnerable individuals and be vital to their livelihood!
Auxilium is mission driven, we are accountable, accurate and clear communicators of our process to do the best work for our beneficiaries.
Why This Matters
Many beneficiaries rely entirely on their Social Security (SSI) payments for housing, food, clothing, medical, and other essential expenses. Overseeing the process of payments can ensure the beneficiary receives the support and guidance they are entitled to. Clear procedures and proper recordkeeping reduce risk and can help develop trust in the representative payee system.
