The payment in Public Assistance to Adults, in any month, shall be the amount by which the allowable needs exceed the net countable income in that month. The payee shall be one of the following: An eligible individual; An agency-appointed representative payee; or A judicially appointed legal representative, guardian, trustee, or committee. Protective payments may be made on behalf of a recipient to an agency-appointed representative payee if: Medical and social findings establish that the recipient is so unable to manage money that making payment to the recipient would be contrary to the recipient's welfare; There is available to act as representative payee, a responsible and dependable individual, other than the assisted living facility operator or staff, to receive the check on behalf of a recipient and handle the money for the recipient's interest and well-being; The initial and subsequent decisions and plan for protective payments are reviewed and approved by the local department director or an appropriate member of the administrative or supervisory staff designated by the local department director to take this responsibility; Services are given to protect the recipient's welfare and to improve, as much as possible, the recipient's care and ability to manage funds; Full needs by assistance standards are met; and The decision and plan are reviewed at least once in 6 months. Protective payments are terminated immediately when: The recipient is considered able to manage funds; Judicial appointment is made of a guardian or other legal representative as serving the best interest of the recipient; or The agency learns that the representative payee has a conflict of interest or is handling the recipient’s funds in a fraudulent or exploitative manner. The representative payee may not be an individual whose selection would create a conflict of interest, including: A Family Investment Program staff member; or An entity that deals with the recipient for profit, such as an assisted living home operator or other vendor. Any program payments that are obtained or used in a fraudulent manner shall be considered an overpayment and shall be subject to recoupment in accordance with Regulation .13 of this chapter.