Administrative Costs Claimed by the Texas Disability Determination Services

Monday, February 4, 2013
Report Number: 
Report Type: 
Audit Report
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Disability determination services (DDS) in each State or other responsible jurisdiction perform disability determinations under the Social Security Administration’s (SSA) Disability Insurance and Supplemental Security Income programs according to Federal law and regulations. Each DDS is responsible for determining claimants’ disabilities and ensuring adequate evidence is available to support its determinations.

To make proper disability determinations, SSA authorizes each DDS to purchase medical examinations, X rays, and laboratory tests on a consultative basis to supplement evidence obtained from the claimants’ physicians or other treating sources. SSA reimburses the DDS for 100 percent of allowable expenditures up to its approved funding authorization. In FFYs 2010 and 2011, TX-DDS claimed administrative costs totaling approximately $302 million.

Our objective was to (1) evaluate the internal controls over the accounting and reporting of administrative costs claimed by the Texas Disability Determination Services (TX-DDS) for Federal Fiscal Years (FFY) 2010 and 2011; (2) determine whether the costs claimed were allowable and funds were properly drawn; and (3) assess, on a limited basis, the general security controls environment.