Audit Report - A-07-97-52005

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 day’s 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