Administrative Costs Claimed by the Tennessee Disability Determination Services

Wednesday, May 22, 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. DDSs must perform such determinations in accordance with 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 reported expenditures up to its approved funding authorization. In FFYs 2010 and 2011, TN-DDS claimed administrative costs totaling $121.2 million.

Our objective was, for Federal Fiscal Years (FFY) 2010 and 2011, to (1) evaluate the internal controls over the accounting and reporting of administrative costs claimed by the Tennessee Disability Determination Services (TN-DDS); (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.