Office of
Audit
State of Arkansas Disability Determination for the Social
Security Administration - A-07-97-52005 - 9/29/97
This final report presents the results of our desk review of an
audit report on the State of Arkansas Disability Determination
for Social Security Administration (ADDSSA) for the period October
1, 1995 through September 30, 1996 (A-07-97-52005). The audit was
performed by Miller, England & Company, Certified Public Accountants,
to meet Federal audit requirements under the Single Audit Act of
1984 (enclosed). Results of our desk review indicate the audit met
Federal requirements.
The report disclosed that: (1) supporting payroll sign-in sheets
were not available for three ADDSSA employees for 1 days work,
resulting in unsupported payroll charges of $201; and (2) ADDSSA
procured two items totaling $7,673 without obtaining competitive
bids as required by Arkansas purchasing law for items with a purchase
price in excess of $1,000. The audit firm recommended that ADDSSA
management take steps to ensure that: (1) support is maintained for
salaries and wages charged to the Federal award program; and (2)
purchasing procedures and the related responsibilities of the employees
are clearly communicated to all employees. ADDSSA commented that
it has taken the recommended corrective actions.
We recommend that the Social Security Administration (SSA) recover
the questioned costs (totaling $7,874) from ADDSSA or obtain sufficient
documentation to conclude that the costs are otherwise acceptable.
We also recommend that SSA ensure that ADDSSA implement the procedural
changes recommended by the audit firm.
You may wish to comment on any action taken or contemplated on our
recommendations. If you choose to comment, please provide your written
comments within 60 days.
Sincerely,
Pamela J. Gardiner
Assistant Inspector General for Audit
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