Social Security Administration Office of the Inspector General
Administrative Costs Claimed by the Kansas Disability Determination Services
To evaluate the Kansas Disability Determination Services’ (KS‑DDS) internal controls over the accounting and reporting of administrative costs, determine whether costs KS-DDS claimed were allowable and properly allocated and funds were properly drawn, and assess limited areas of the general security controls environment. Our audit included the administrative costs claimed by the KS‑DDS during Federal Fiscal Years (FY) 2007 and 2008.
Disability determinations under both the Disability Insurance and Supplemental Security Income programs are performed by disability determination services (DDS) in each State and other responsible jurisdictions. The Social Security Administration (SSA) reimburses the DDS for 100 percent of allowable reported expenditures up to its approved funding authorization.
To view the full report, visit http://www.ssa.gov/oig/ADOBEPDF/A-07-09-19093.pdf
With the exception of cash management, KS-DDS' internal controls over the accounting and reporting of administrative costs were adequate to ensure costs claimed were allowable and properly allocated. With regard to cash management, we found that the Kansas Department of Social and Rehabilitation Services (KS-SRS) drew $331,553 more from the KS-DDS’ FY 2008 Department of the Treasury account than the KS-DDS’ actual expenditures reported on the FY 2008 Form SSA-4513, Automated Standard Application for Payments. We also found KS-DDS did not maintain an accurate inventory of SSA-purchased computer equipment. Regarding general security controls, we found KS-DDS’ security plan did not contain all essential information required by SSA’s policies.
We recommend the SSA Regional Commissioner:
SSA and KS-SRS agreed with our recommendations.