Who actually received the $$$

If the Daughter did not receive the $ than she reports the 1099 income and puts in an expense something like "1099 received belonging to others" and subtracts out the amount.

Father does not need a 1099 to report the income, and daughter is not in business so she does not need o issue a 1099, if I correctly understand the situation.

No one running a business should be reporting their tax situation based only on 1099's they receive. They should be reporting their actual income and expenses, regardless of what 1099's say, and only worry about 1099's unless the 1099's are somehow over reporting their gross income.