+-----+---+-----------------------------------------------------------+
| 00  | B | Hello, My name is Barbara Benjamin. I\'m a policy analyst |
| :09 | B | in the Office of Beneficiary Determinations and Services. |
|     |   | Today we are going to talk about some best practices for  |
|     |   | maintaining the integrity and accuracy of your            |
|     |   | representative payee records from an accountant\'s        |
|     |   | standpoint.                                               |
+-----+---+-----------------------------------------------------------+
| 00  |   | I\'d like to introduce Ms. Glenda Somerville from the     |
| :27 |   | accounting firm of Regis & Associates, PC. We believe     |
|     |   | you\'ll find her presentation very informative even if    |
|     |   | your organization already has some type of accounting     |
|     |   | system in place.                                          |
+-----+---+-----------------------------------------------------------+
| 00  |   | You should have already received training from the Social |
| :41 |   | Security Administration about what records you must keep, |
|     |   | as well as a copy of the booklet \"Guide for              |
|     |   | Organizational Representative Payees.\"                   |
|     |   |                                                           |
|     |   | Throughout this presentation, we\'ll use the term         |
|     |   | \"beneficiary funds,\" but what we\'re really talking     |
|     |   | about is the beneficiaries\' money.                       |
+-----+---+-----------------------------------------------------------+
| 01  |   | Glenda, first of all, can you tell us how a               |
| :00 |   | representative payee should set up an accounting system   |
|     |   | from a professional accountant\'s standpoint.             |
+-----+---+-----------------------------------------------------------+
| 01  | G | Thank you, Barbara, I can. Most organizational            |
| :08 | S | representative payees serve many beneficiaries. To        |
|     |   | account for adequately for funds your organization        |
|     |   | receives for each beneficiary, you\'ll need to have       |
|     |   | certain separate and distinct accounting processes in     |
|     |   | place.                                                    |
+-----+---+-----------------------------------------------------------+
| 01  |   | An accounting system that is capable of adequately        |
| :27 |   | managing beneficiary funds should at a minimum have four  |
|     |   | features. Those features are the capability to:           |
+-----+---+-----------------------------------------------------------+
| 01  |   | track each beneficiary's Social Security benefits,        |
| :38 |   | Supplemental Security Income, also referred to as SSI     |
|     |   | benefits, and other funds received and how the funds are  |
|     |   | spent or saved;                                           |
+-----+---+-----------------------------------------------------------+
| 01  |   | retain adequate accounting records supporting             |
| :51 |   | beneficiaries' financial transactions; know the amount of |
|     |   | funds held on behalf of each beneficiary at all times;    |
|     |   | and include some basic security processes to safeguard    |
|     |   | beneficiary funds.                                        |
+-----+---+-----------------------------------------------------------+
| 02  |   | In the following segments of this presentation, I\'ll     |
| :08 |   | discuss some basic elements, processes, and requirements  |
|     |   | of an adequate accounting system.                         |
|     |   |                                                           |
|     |   | You\'ll notice as we go through the material that every   |
|     |   | time you handle beneficiary funds, an opportunity exists  |
|     |   | for you to create or keep a record of how you managed     |
|     |   | those funds.                                              |
+-----+---+-----------------------------------------------------------+
| 02  |   | Your accounting system can meet those four requirements   |
| :27 |   | only if your organization has a basic structure in place  |
|     |   | for managing the financial activities of its              |
|     |   | beneficiaries. The elements that support this structure   |
|     |   | are People, Processes, Systems, and Documentation:        |
+-----+---+-----------------------------------------------------------+
| 02  |   | People are required to perform the day to day financial   |
| .45 |   | management of beneficiaries' funds. This includes the     |
|     |   | processing of all beneficiary transactions from           |
|     |   | initiation and transaction authorization to recording and |
|     |   | reporting. Processes are the standardized procedures that |
|     |   | you use for managing beneficiary funds.                   |
+-----+---+-----------------------------------------------------------+
| 03  |   | Systems represent the accounting system, preferably       |
| :06 |   | automated, that you use to record and manage funds.       |
|     |   | Documentation represents all of the documents and other   |
|     |   | records that you will generate and obtain as a result of  |
|     |   | processes your organization establishes for managing      |
|     |   | funds.                                                    |
+-----+---+-----------------------------------------------------------+
| 03  | B | Can you give us a few examples of the kinds of records    |
| :25 | B | and documents you\'re talking about?                      |
+-----+---+-----------------------------------------------------------+
| 03  | G | These are typically bank statements, cancelled checks,    |
| :30 | S | cash receipts records, agreements with third parties,     |
|     |   | bills, petty cash receipts, beneficiary subsidiary        |
|     |   | ledgers, bank reconciliation records, and any and all     |
|     |   | records that support the financial transactions made on   |
|     |   | behalf of beneficiaries. I\'ll discuss some of these      |
|     |   | items later.                                              |
+-----+---+-----------------------------------------------------------+
| 03  |   | In the context of a representative payee accounting       |
| :55 |   | system, there are four core management activities you     |
|     |   | will need to carry out. These activities are:             |
|     |   |                                                           |
|     |   | the receipt and disbursement of funds;                    |
|     |   |                                                           |
|     |   | the maintenance of supporting ledgers and other records;  |
+-----+---+-----------------------------------------------------------+
| 04  |   | the management of bank and other cash accounts; and       |
| :13 |   |                                                           |
|     |   | the use of data produced to ensure compliance with        |
|     |   | various other program requirements.                       |
+-----+---+-----------------------------------------------------------+
| 04  | B | Tell us how a representative payee should manage the      |
| :24 | B | funds from the point that an organization receives them   |
|     |   | from Social Security.                                     |
+-----+---+-----------------------------------------------------------+
| 04  | G | Barbara, representative payees may receive beneficiary    |
| :31 | S | funds from numerous sources, at various times, and for    |
|     |   | various purposes.                                         |
|     |   |                                                           |
|     |   | Social Security will send your organization beneficiary   |
|     |   | funds in the form of a paper check or by direct deposit   |
|     |   | into a bank account.                                      |
+-----+---+-----------------------------------------------------------+
| 04  |   | When your organization receives funds from the Social     |
| :50 |   | Security Administration or from some other source you     |
|     |   | should, at the minimum, do the following:                 |
+-----+---+-----------------------------------------------------------+
| 05  |   | Record the receipt of the paper checks at the point of    |
| :00 |   | entry into your organization. Normally, organizations     |
|     |   | have procedures to log in checks at the front desk along  |
|     |   | with other mail. Typically the check log will capture     |
|     |   | payee, the amount of the check, the check number, the     |
|     |   | issuer, and the date.                                     |
+-----+---+-----------------------------------------------------------+
| 05  |   | After the checks have been logged in, you should forward  |
| :21 |   | them and a copy of the log to your organization\'s        |
|     |   | accounting department or to a designated individual who   |
|     |   | will prepare a bank account deposit ticket for the day\'s |
|     |   | deposit.                                                  |
+-----+---+-----------------------------------------------------------+
| 05  |   | The employee responsible for preparing the bank deposit   |
| .36 |   | has an important job. Before making the deposit, this     |
|     |   | employee must make sure that the checks are actually for  |
|     |   | beneficiaries the representative payee serves. He or she  |
|     |   | must also confirm that the check amount matches what the  |
|     |   | representative payee is expecting for them to receive.    |
|     |   | For example, compare the check to the latest notice       |
|     |   | received from the Social Security Administration.         |
+-----+---+-----------------------------------------------------------+
| 06  |   | This individual should also ensure completeness of the    |
| :05 |   | deposit by comparing the checks being deposited to those  |
|     |   | which have been logged in;                                |
|     |   |                                                           |
|     |   | ensure the accuracy of the deposit by re-computing the    |
|     |   | amounts being deposited; and ensure that the checks are   |
|     |   | being deposited into the appropriate bank account, for    |
|     |   | example, the beneficiaries\' collective account or        |
|     |   | savings accounts.                                         |
+-----+---+-----------------------------------------------------------+
| 06  |   | Once checks have been deposited, forward the deposit      |
| :30 |   | ticket stamped by the bank to the individual responsible  |
|     |   | for recording benefit data into the accounting system.    |
+-----+---+-----------------------------------------------------------+
| 06  |   | For direct deposit, the source document for recording the |
| :42 |   | benefits received in each beneficiary\'s subsidiary       |
|     |   | ledger should be the remittance statements forwarded by   |
|     |   | the financial institution. Direct deposits must also be   |
|     |   | recorded into the accounting system.                      |
+-----+---+-----------------------------------------------------------+
| 06  |   | When recording benefits received in an accounting system, |
| :58 |   | you should ensure that: the amounts are recorded in the   |
|     |   | same accounting period the funds were received; the       |
|     |   | correct amounts are recorded for each beneficiary; the    |
|     |   | appropriate beneficiary subsidiary ledger is credited;    |
|     |   | and                                                       |
|     |   |                                                           |
|     |   | the total of all benefits received from Social Security   |
|     |   | agrees with the total recorded in beneficiaries' ledgers. |
+-----+---+-----------------------------------------------------------+
| 07  | B | You\'ve just told us about processing and recording       |
| :26 | B | payments from Social Security. What types of important    |
|     |   | records might be generated during this process?           |
+-----+---+-----------------------------------------------------------+
| 07  | G | You know, Barbara, these records are continuously         |
| :35 | S | generated. Some are generated during the process, while   |
|     |   | others are generated after the process is completed.      |
+-----+---+-----------------------------------------------------------+
| 07  |   | These records may include: cash receipts log, copies of   |
| :46 |   | benefit checks,                                           |
|     |   |                                                           |
|     |   | cash receipts edit report, cash receipts registers, bank  |
|     |   | deposit transmittals,                                     |
|     |   |                                                           |
|     |   | records of updated beneficiary ledgers, bank transmittals |
|     |   | and statements of interest earned.                        |
+-----+---+-----------------------------------------------------------+
| 08  |   | You should retain these documents as a permanent record.  |
| :08 |   | Your organization should have policies and procedures to  |
|     |   | ensure that someone other than the preparer certifies     |
|     |   | these documents are complete and accurate before they are |
|     |   | filed.                                                    |
+-----+---+-----------------------------------------------------------+
| 08  | B | What security measures should a representative payee      |
| :24 | B | implement over the cash receipts process?                 |
+-----+---+-----------------------------------------------------------+
| 08  | G | There are numerous security measures. These measures take |
| :29 | S | the form of internal controls that are typical in an      |
|     |   | accounting system. I previously described some of these   |
|     |   | controls which are embedded in the processing of benefit  |
|     |   | receipts.                                                 |
+-----+---+-----------------------------------------------------------+
| 08  |   | Other security controls may include: securing all         |
| :45 |   | undeposited benefits in a locked cabinet or safe; a       |
|     |   | monthly review of the recording of beneficiary receipts   |
|     |   | by a third party, such as a supervisor; a periodic        |
|     |   | reconciliation of interest earnings on the bank statement |
|     |   | to the amount allocated and posted to the beneficiary     |
|     |   | subsidiary ledgers; and monthly reconciliation of total   |
|     |   | cash receipts, such as checks and direct deposits         |
|     |   | recorded in beneficiary ledgers to deposits recorded by   |
|     |   | the bank.                                                 |
+-----+---+-----------------------------------------------------------+
| 09  | B | How can a representative payee insure that interest       |
| :23 | B | earned is properly managed?                               |
+-----+---+-----------------------------------------------------------+
| 09  | G | In most cases, representative payees hold beneficiary     |
| :27 | S | funds in interest-bearing accounts. The amount of         |
|     |   | interest earned is routinely found on bank statements.    |
|     |   | The interest should generally be recorded in the          |
|     |   | beneficiaries\' accounts and subsidiary ledgers, monthly  |
|     |   | or quarterly, depending on how it's paid by the bank.     |
+-----+---+-----------------------------------------------------------+
| 09  |   | If your organization uses a collective account, you'll    |
| :49 |   | have to compute interest allocations. The handout labeled |
|     |   | "Interest Allocation" shows an example of one method for  |
|     |   | computing and allocating interest when an organization is |
|     |   | using a collective bank account.                          |
+-----+---+-----------------------------------------------------------+
| 10  |   | In this example, interest was allocated based on each     |
| :07 |   | beneficiary's proportionate ending balance. The account   |
|     |   | has three beneficiaries. The total balance of the account |
|     |   | before interest was \$3,098.12.                           |
+-----+---+-----------------------------------------------------------+
| 10  |   | Of this total, \$3,061.02, or 98.8% belongs to Jennifer   |
| :26 |   | Williams. The amount of the interest earned on this       |
|     |   | account was \$56.50. Because 98.8% of the total balance   |
|     |   | belongs to Jennifer, she is allocated 98.8% of the        |
|     |   | interest or \$55.82.                                      |
+-----+---+-----------------------------------------------------------+
| 10  |   | Note that this allocation method may not result in an     |
| :53 |   | equitable allocation. For example, where large deposits   |
|     |   | or withdrawals are made to a beneficiary's account at the |
|     |   | end of a month, you should consider using the most        |
|     |   | consistent and logical basis available when allocating    |
|     |   | interest. Remember to record interest allocations to the  |
|     |   | beneficiary subsidiary ledgers.                           |
+-----+---+-----------------------------------------------------------+
| 11  | B | Now that we\'ve learned about managing the receipts       |
| :21 | B | process and associated security measures, let\'s move on  |
|     |   | to explaining how an organization should pay expenses and |
|     |   | keep track of disbursements.                              |
+-----+---+-----------------------------------------------------------+
| 11  | G | There are lots of different reasons why an organization   |
| :32 | S | makes disbursements on behalf of beneficiaries. These may |
|     |   | include: care and maintenance, furniture purchases, rent, |
|     |   | utilities, insurance, bills, medical bills, and many      |
|     |   | others. When incurring expenses or making disbursements   |
|     |   | for goods and services, your organization should ensure   |
|     |   | that any request for a desired item is valid.             |
+-----+---+-----------------------------------------------------------+
| 12  |   | This means that the request is either from an employee    |
| :01 |   | authorized to make the request, or the beneficiary. To    |
|     |   | the maximum extent possible, the request should be in     |
|     |   | writing. The designated employee should also review the   |
|     |   | beneficiary\'s updated subsidiary ledger to ensure the    |
|     |   | beneficiary has sufficient funds to cover the expense.    |
+-----+---+-----------------------------------------------------------+
| 12  |   | Next, the request should be authorized by the appropriate |
| :24 |   | employee after review of invoices, agreements, and other  |
|     |   | supporting documentation.                                 |
|     |   |                                                           |
|     |   | Checks and other disbursements should be recorded in the  |
|     |   | accounting system in the appropriate accounting period.   |
|     |   | Mark the invoices \"Paid\" to avoid duplicate payment.    |
|     |   | Expenses and disbursements should be recorded in the      |
|     |   | appropriate beneficiary ledgers.                          |
+-----+---+-----------------------------------------------------------+
| 12  |   | Review all disbursements recorded in beneficiaries\'      |
| :51 |   | ledgers monthly. This practice will ensure the            |
|     |   | completeness and accuracy of charges to beneficiary       |
|     |   | accounts.                                                 |
+-----+---+-----------------------------------------------------------+
| 13  |   | A monthly reconciliation of beneficiaries\' bank accounts |
| :02 |   | and ledgers helps to achieve the goals of completeness    |
|     |   | and accuracy. In addition, make sure that the checks are  |
|     |   | timely issued to the appropriate vendor.                  |
+-----+---+-----------------------------------------------------------+
| 13  | B | Since we\'ve been talking about processing and recording  |
| :21 | B | expenses and disbursements, what types of records might   |
|     |   | be generated during this process?                         |
+-----+---+-----------------------------------------------------------+
| 13  | G | That\'s a good question because there are important       |
| :29 | S | records that are generated throughout the expense and     |
|     |   | disbursement process. These may include: master           |
|     |   | agreements for services (for example, nursing home        |
|     |   | contracts), and lease agreements, vendor invoices,        |
|     |   | cancelled checks and check copies, the check register,    |
|     |   | payment request form, various ledger and edit reports;    |
|     |   | and reports of updated beneficiary subsidiary ledgers.    |
+-----+---+-----------------------------------------------------------+
| 13  |   | Retain these documents as your permanent record to show   |
| :58 |   | how you used the beneficiary funds. Your organization     |
|     |   | should have policies and procedures in place to ensure    |
|     |   | that someone other than the preparer certifies these      |
|     |   | documents are complete and accurate before they are       |
|     |   | filed.                                                    |
+-----+---+-----------------------------------------------------------+
| 14  | B | Glenda, earlier you talked about the security measures    |
| :18 | B | that should be used for the cash receipts process. Are    |
|     |   | there similar security measures that a representative     |
|     |   | payee should exercise over expenses and disbursements?    |
+-----+---+-----------------------------------------------------------+
| 14  | G | Yes Barbara, there are numerous security measures that an |
| :29 | S | organization may implement to manage expenses and         |
|     |   | disbursements. As with cash receipts, these security      |
|     |   | measures may take the form of internal controls that are  |
|     |   | typical in an accounting system. I previously described   |
|     |   | some of these controls that are embedded in the           |
|     |   | processing of expenses and disbursements.                 |
+-----+---+-----------------------------------------------------------+
| 14  |   | Other security controls may include: securing all blank   |
| :52 |   | checks in a locked container, such as a safe, at all      |
|     |   | times. Assign this duty to someone other than the         |
|     |   | individual responsible for issuing the checks.            |
+-----+---+-----------------------------------------------------------+
| 15  |   | Requiring adequate documentation for all beneficiary      |
| :06 |   | expenses prior to approval. Exceptions are the            |
|     |   | transactions that do not typically require vendor         |
|     |   | invoices such as petty cash transactions and small        |
|     |   | amounts for personal needs.                               |
+-----+---+-----------------------------------------------------------+
| 15  |   | Prior to making disbursements, reviewing the              |
| :22 |   | beneficiary's ledger to ensure that it is up to date and  |
|     |   | that funds are available to cover the planned             |
|     |   | disbursement; establishing a disbursement threshold       |
|     |   | beyond which two signatures are required for check        |
|     |   | issuance;                                                 |
+-----+---+-----------------------------------------------------------+
| 15  |   | issuing and signing checks only after the issuer and      |
| :41 |   | signer have reviewed the supporting documentation; not    |
|     |   | returning signed checks ready for release to the          |
|     |   | accounting department to prevent check fraud; and         |
|     |   |                                                           |
|     |   | requiring a periodic review of expense postings to        |
|     |   | subsidiary ledgers for completeness and accuracy.         |
+-----+---+-----------------------------------------------------------+
| 16  | B | Can you tell us more about maintaining subsidiary ledgers |
| :06 | B | and reconciliation practices?                             |
+-----+---+-----------------------------------------------------------+
| 16  | G | As noted before, the proper maintenance of beneficiary    |
| :11 | S | subsidiary ledgers is critical to the successful          |
|     |   | management of beneficiary funds. Each beneficiary\'s      |
|     |   | ledger is generally referred to as a subsidiary ledger.   |
|     |   |                                                           |
|     |   | All detailed transactions you make on behalf of           |
|     |   | individual beneficiaries are recorded in their subsidiary |
|     |   | ledger.                                                   |
+-----+---+-----------------------------------------------------------+
| 16  |   | Typically the information recorded in a subsidiary ledger |
| :34 |   | may include the type of transaction, the transaction      |
|     |   | date, source of cash receipt, person or business a check  |
|     |   | is paid to, the amount credited or the amount debited and |
|     |   | the remaining balance. Examples of transaction types      |
|     |   | include deposits and disbursements.                       |
+-----+---+-----------------------------------------------------------+
| 16  |   | Subsidiary ledgers operate in synergy with the            |
| :57 |   | corresponding beneficiary bank accounts you maintain as   |
|     |   | the representative payee. For example, when a             |
|     |   | beneficiary's expenses are incurred and paid, the         |
|     |   | beneficiary's bank account balances are reduced. The      |
|     |   | amount of expenses are also recorded in the corresponding |
|     |   | beneficiary\'s subsidiary ledger. These ledgers also      |
|     |   | provide you with a running balance of the amount of funds |
|     |   | available for each beneficiary at any given time.         |
+-----+---+-----------------------------------------------------------+
| 17  |   | A monthly reconciliation of subsidiary ledgers is a       |
| :29 |   | critical                                                  |
|     |   |                                                           |
|     |   | financial management tool in safeguarding beneficiary     |
|     |   | funds. This is a key security measure for both the        |
|     |   | beneficiaries\' bank account and related subsidiary       |
|     |   | ledgers.                                                  |
+-----+---+-----------------------------------------------------------+
| 17  |   | The handout with the heading \"Monthly Bank Account and   |
| :46 |   | Ledger Reconciliations\" is a simplified illustration of  |
|     |   | such a reconciliation. It is based on the assumption that |
|     |   | all expenses incurred during the period are paid within   |
|     |   | the same period. The example shows the period ending      |
|     |   | October 31, 2004. Note in this illustration that the sum  |
|     |   | of the three beneficiary subsidiary ledger balances of    |
|     |   | \$3,154.62 agrees with the reconciled collective account  |
|     |   | bank balance.                                             |
+-----+---+-----------------------------------------------------------+
| 18  | B | Can you give us some tips for managing bank accounts?     |
| :28 | B |                                                           |
+-----+---+-----------------------------------------------------------+
| 18  | G | In practice, SSA allows beneficiary payees to use a broad |
| :31 | S | range of banking arrangements to manage funds. A key      |
|     |   | security measure is the monthly reconciliation of all     |
|     |   | bank accounts. These reconciliations provide a status of  |
|     |   | beneficiary funds.                                        |
+-----+---+-----------------------------------------------------------+
| 18  |   | But that\'s not all. They also serve to identify any      |
| :50 |   | discrepancies or errors that may have occurred during the |
|     |   | monthly processing of transactions, but not detected.     |
|     |   | Upon completion of the reconciliation of all bank         |
|     |   | accounts, you should ensure the adjustments are applied   |
|     |   | to the sum of the corresponding ledgers. Be sure to       |
|     |   | account for any differences.                              |
+-----+---+-----------------------------------------------------------+
| 19  |   | Some significant security measures related to the         |
| :17 |   | reconciliation and management of beneficiary bank         |
|     |   | accounts include: the review of all cleared checks for    |
|     |   | propriety (that is; the amount, payee, endorsement, and   |
|     |   | adequacy of signatures); the identification of all        |
|     |   | unreconciled balances;                                    |
|     |   |                                                           |
|     |   | the investigation and resolution of long outstanding      |
|     |   | reconciling items such as stale dated checks and          |
|     |   | deposits; the review and approval of bank reconciliations |
|     |   | by someone other than the preparer. This is a very        |
|     |   | important measure. And last on this list is the permanent |
|     |   | retention of bank reconciliation records.                 |
+-----+---+-----------------------------------------------------------+
| 20  | B | Before we wrap up this presentation, are there any other  |
| :00 | B | security measures and tips you can give?                  |
+-----+---+-----------------------------------------------------------+
| 20  | G | Because they manage significant amounts of funds, each    |
| :05 | S | representative payee needs adequate security within its   |
|     |   | financial management system. I\'ve previously discussed   |
|     |   | many of the practices that lead to an adequate climate of |
|     |   | security.                                                 |
+-----+---+-----------------------------------------------------------+
| 20  |   | Most financial transactions you\'ll make for              |
| :21 |   | beneficiaries originate with cash receipts and            |
|     |   | disbursements functions I described. So those functions   |
|     |   | are where you must implement most of the best practices.  |
|     |   | However, here are some general security reminders, your   |
|     |   | organization should have.                                 |
+-----+---+-----------------------------------------------------------+
| 20  |   | Your organization should have: adequate segregation of    |
| :40 |   | duties within the accounting functions to help ensure     |
|     |   | transactions are properly authorized and executed; data   |
|     |   | security in place including frequent data backups and     |
|     |   | off-site storage; as well as physical security over       |
|     |   | unissued checks and liquid assets, such as bank accounts  |
|     |   | and cash; adequate review and supervision of the          |
|     |   | accounting functions related to beneficiary funds, where  |
|     |   | practical.                                                |
+-----+---+-----------------------------------------------------------+
| 21  |   | The financial management best practices I just spoke      |
| :12 |   | about will help establish a strong accounting framework   |
|     |   | for any representative payee. The accounting data         |
|     |   | generated by such an accounting system can help your      |
|     |   | organization in carrying out its Representative Payee     |
|     |   | Program requirements.                                     |
+-----+---+-----------------------------------------------------------+
| 21  |   | For example, the data generated by a well functioning     |
| :32 |   | accounting system may also be used to: monitor resource   |
|     |   | limits for Supplemental Security Income recipients;       |
|     |   | determine fund availability prior to making               |
|     |   | disbursements; determine the extent of conserved funds    |
|     |   | that may be invested; and provide data for preparing      |
|     |   | annual accounting reports for SSA.                        |
+-----+---+-----------------------------------------------------------+
| 21  |   | To conclude this presentation, here are some final tips   |
| :57 |   | to help you                                               |
|     |   |                                                           |
|     |   | manage beneficiary funds. Do not deposit beneficiary      |
|     |   | funds in your organization's operating account when you   |
|     |   | initially receive them.                                   |
|     |   |                                                           |
|     |   | If your organization's operating account is used to pay   |
|     |   | beneficiary bills, only transfer the amount necessary to  |
|     |   | cover the bills from the beneficiaries' collective        |
|     |   | account.                                                  |
+-----+---+-----------------------------------------------------------+
| 22  |   | Allocate interest to beneficiary ledgers in a consistent  |
| :22 |   | and logical manner.                                       |
|     |   |                                                           |
|     |   | All bank accounts and other investment instruments        |
|     |   | holding beneficiary funds should be covered by FDIC       |
|     |   | insurance, or otherwise guaranteed by the United States   |
|     |   | government. Large organizations with significant cash     |
|     |   | balances of beneficiary funds should monitor balances to  |
|     |   | avoid financial risk.                                     |
+-----+---+-----------------------------------------------------------+
| 22  |   | Where the representative payee provides goods or          |
| :49 |   | services, the basis for agreements and fee schedules      |
|     |   | should be adequately documented and objectively           |
|     |   | verifiable. Do not issue checks payable for "Cash."       |
|     |   | Discuss with your bank ways to prevent direct access to   |
|     |   | bank accounts by beneficiaries. The payments should be    |
|     |   | made to caseworkers and caretakers for the benefit of     |
|     |   | beneficiaries only when no alternative is available.      |
|     |   | These transactions require clear and convincing           |
|     |   | supporting documentation.                                 |
+-----+---+-----------------------------------------------------------+
| 23  | B | Thank you, Glenda. Well, this concludes today\'s          |
| :24 | B | presentation. We hope the information we\'ve presented    |
|     |   | will help you set up and maintain an effective            |
|     |   | representative payee accounting system or help you        |
|     |   | improve the system that you\'re using now.                |
+-----+---+-----------------------------------------------------------+
|     |   |                                                           |
+-----+---+-----------------------------------------------------------+
|     |   |                                                           |
+-----+---+-----------------------------------------------------------+