The attached final report presents the results of our audit. Our objective was to evaluate (1) the effectiveness of the Social Security Administration’s controls and procedures for resolving death alerts and recovering payments after the death of a beneficiary, and (2) the timeliness of death reporting by State agencies.

Please comment within 60 days from the date of this memorandum on corrective action taken or planned on each recommendation. If you wish to discuss the final report, please call me or have your staff contact Steven L. Schaeffer, Assistant Inspector General for Audit, at (410) 965-9700.

James G. Huse, Jr.

Executive Summary

Our objective was to evaluate (1) the effectiveness of the Social Security Administration’s (SSA) controls and procedures for resolving death alerts and recovering payments after the death of a beneficiary, and (2) the timeliness of death reporting by State agencies.

BACKGROUND

SSA’s Death Alert, Control, and Update System (DACUS) receives death reports from Federal and State agencies and compares the date of death to its payment records. If payments have been made after death, DACUS generates an alert. SSA’s procedures state that field offices (FO) should resolve death alerts within 30 days to minimize incorrect payments. To recover payments after death, SSA works with the Department of the Treasury (Treasury) to initiate the reclamation process and collect any outstanding amounts owed to the Agency.

In September 1999, SSA contracted with the National Association for Public Health Statistics and Information Systems (NAPHSIS) to develop standards and guidelines for a nationwide system of electronic death registration (EDR). Under EDR, SSA verifies the Social Security number (SSN) with the State bureaus of vital statistics at the beginning of the death registration process, thereby allowing the Agency to take immediate termination action—on death reports with verified SSNs—without independently verifying the accuracy of the report.

SSA needs to improve its controls and procedures to ensure that (1) death alerts are resolved in a timely and consistent manner, and (2) improper payments are recovered after the death of a beneficiary. Because of delays in receiving death reports from Federal and State agencies and processing reclamation actions with Treasury, SSA is vulnerable to individuals who negotiate payments received after the death of a beneficiary.

Based on a random sample of 200 death alerts from July to December 1999, we found that SSA disbursed $216,327 in payments after death. Of this amount, SSA had not recovered $8,141 as of March 2002. Projecting these results to our population of 65,809 death alerts, we estimate that SSA disbursed about $71.2 million in payments after death, of which SSA was unable to recover about $2.7 million. For calendar year 1999, we estimate that SSA disbursed about $142.4 million in payments after death. Of this amount, SSA had not recovered about $5.4 million as of March 2002 (see Appendix A).

We recommend that SSA:

• Modify its automated systems to support EDR, including the on-line verification of SSNs, processing of verified and unverified State death reports, and termination of benefits upon receipt of verified State death reports.

• Encourage State BVS agencies to develop and implement EDR systems.

• Work with other Federal and State agencies to obtain additional funding for EDR.

• Issue a memorandum to reiterate that FOs should process death alerts as expeditiously as possible to minimize improper payments to deceased beneficiaries.

• Evaluate the feasibility of systems modifications to (1) simultaneously issue the "come-in" letter to the beneficiary when the death alert is sent to the FO, and (2) automatically suspend benefits if the beneficiary does not respond to the "come-in" letter.

• Issue a memorandum to reiterate that processing centers (PC) should follow up on the status of reclamation actions with Treasury to ensure that payments after death are recovered.

• Encourage PCs to maximize the use of debt collection tools available to the Agency to recover payments after the death of a beneficiary.

SSA agreed with six of the seven recommendations. Specifically, SSA agreed to obtain systems support for EDR and stated that full implementation is scheduled for September 2003. SSA is working with NAPHSIS to develop and implement EDR systems and plans to award additional contracts to States in September 2002. In addition, SSA is working with the National Centers for Health Statistics to obtain sources of funding for EDR.

SSA agreed to issue a memorandum by September 2002 to remind its employees to process all death alerts in a timely manner and follow up on reclamation actions with Treasury to ensure that payments after death are recovered. SSA also agreed that debt collection tools should be used to the extent possible. Furthermore, SSA initiated an Information Technology project to facilitate the use of authorized debt collection tools available to the Agency.

However, SSA disagreed with our recommendation to evaluate the feasibility of systems modifications to (1) simultaneously issue the "come-in" letter along with the death alert and (2) automatically suspend benefits if there is no response to the "come-in" letter. SSA stated that the corrective actions for other recommendations in the report should address the concerns raised in this recommendation. SSA also provided technical comments that have been incorporated into the final report. The full text of SSA’s comments is included in Appendix B.

SSA’s planned actions generally addressed our recommendations. Although EDR may provide a solution for the long term, we believe SSA should evaluate other alternatives for the short term. Therefore, we encourage SSA to reassess the feasibility of systems modifications to further automate the death reporting process.

Table of Contents

Page

Appendix C – OIG Contacts and Staff Acknowledgments

Acronyms

BVS Bureau of Vital Statistics

CMS Centers for Medicare and Medicaid Services

CY Calendar Year

DACUS Death Alert, Control, and Update System

EDR Electronic Death Registration

FO Field Office

FY Fiscal Year

MBR Master Beneficiary Record

NAPHSIS National Association for Public Health Statistics and Information Systems

OASDI Old-Age, Survivors and Disability Insurance

PC Processing Center

POMS Program Operations Manual System

SSA Social Security Administration

SSI Supplemental Security Income

SSN Social Security Number

SSR Supplemental Security Record

Introduction

Our objective was to evaluate (1) the effectiveness of the Social Security Administration’s (SSA) controls and procedures for resolving death alerts and recovering payments after the death of a beneficiary, and (2) the timeliness of death reporting by State agencies.

SSA administers the Old-Age, Survivors and Disability Insurance (OASDI) and Supplemental Security Income (SSI) programs under titles II and XVI of the Social Security Act (Act). The OASDI program provides benefits to retired and disabled workers, including their dependents and survivors. The SSI program provides benefits to financially needy individuals who are aged, blind, and/or disabled. For the Fiscal Year (FY) ended September 30, 2000, the OASDI program provided cash payments of $402.1 billion to 45.3 million beneficiaries. In addition, the SSI program provided cash payments of $30.8 billion to 6.6 million recipients.

About 2.3 million people die in the United States each year, of whom 2.0 million are SSA beneficiaries. The death of a beneficiary is an event that terminates the entitlement of that individual to benefits. SSA receives reports of death from a variety of sources, including friends and relatives of deceased individuals, funeral homes, postal authorities, financial institutions, and Federal and State agencies. Friends, relatives, and funeral homes report about 90 percent of deaths. Postal authorities and financial institutions report another 5 percent of deaths. SSA relies on computer matches with Federal and State agencies to identify the remaining 5 percent of deaths. The following chart illustrates the source of death reports received by SSA.

Upon receipt of a death report, field offices (FO) and processing centers (PC) enter the information into SSA’s automated systems. For all individuals, the death information is recorded on the Numident, a master file that contains personal identifying data about each individual who has been issued a Social Security number (SSN). For individuals currently receiving benefits, the death information is recorded on the Master Beneficiary Record (MBR) and Supplemental Security Record (SSR), the master files that contain payment data about each individual who has received Social Security benefits.

To identify erroneous payments to deceased individuals, SSA’s Death Alert, Control, and Update System (DACUS) performs computer matches with death data received from external and internal sources. The external sources include Federal agencies, such as the Veterans Administration and the Centers for Medicare and Medicaid Services (CMS), and State agencies, such as bureaus of vital statistics (BVS) and social services agencies. The internal sources include SSA’s system of records, such as the MBR, SSR, and Numident. DACUS also produces a national file of death information, called the Death Master File.

DACUS receives the death reports and compares the date of death to SSA’s payment records, including the MBR and SSR. If there is no conflicting information, DACUS records the death on the Numident. If payments have been made after death or there is conflicting information about the date of death, DACUS generates an alert to the FO. DACUS also generates a follow-up alert every 30 days until the initial alert has been resolved. In addition, DACUS produces a monthly report of death alerts over 120 days old, called the "120-day aged alert report," for regional offices to ensure that all death alerts are resolved.

In September 1999, SSA contracted with the National Association for Public Health Statistics and Information Systems (NAPHSIS), an association of State vital records directors and registrars, to develop standards and guidelines for a nationwide system of electronic death registration (EDR). This system would enable SSA to receive death reports within 5 days of death and 24 hours of receipt in the State BVS. Under EDR, SSA verifies the SSN with the State BVS at the beginning of the death registration process, thereby allowing the Agency to take immediate termination action—on death reports with verified SSNs—without independently verifying the accuracy of the report.

This system would automate the death registration process and enable SSA to receive more timely and accurate death reports, resulting in significant program and workyear savings. In addition, EDR provides the infrastructure for other Federal and State agencies that rely on such information to detect and prevent erroneous payments to deceased individuals. Under the terms of the contract, NAPHSIS conducted two pilot projects to determine the feasibility of (1) transmitting death reports to SSA within 24 hours, and (2) developing a system for on-line verification of SSNs. Both projects were completed in New Jersey.

Upon receipt of a death report, SSA is required to terminate benefits to the deceased individual and recover any payments after the date of death. Since entitlement to benefits ceases when an individual dies, these payments are defined as incorrect payments rather than overpayments and are not subject to SSA’s normal recovery procedures. Generally, the recovery of payments after death is the responsibility of the Department of the Treasury (Treasury). Treasury recovers these payments from financial institutions through a process called reclamation.

SSA initiates the reclamation process by electronically submitting the Form SF-1184, Unavailable Check Cancellation/Request for Stop Payment, to Treasury. Upon receipt of the Form SF-1184, Treasury examines its records of issued payments. If the check was issued but not negotiated, Treasury credits SSA for the amount of the payment. If the check was negotiated, Treasury attempts to reclaim the amount from the financial institution. Treasury credits SSA for any funds collected from the financial institution. Treasury initiates similar actions for payments via electronic funds transfer. If the full amount of the payment is not recovered, Treasury provides SSA with a copy of the negotiated check or the name of the individual who withdrew the funds from the beneficiary’s account. Thereafter, the responsibility for collecting any outstanding amounts shifts to SSA.

From July to December 1999, DACUS generated 65,809 initial death alerts for OASDI beneficiaries under title II of the Act. Of this amount, 63,056 alerts were for beneficiaries in current pay status, and 2,753 alerts were for beneficiaries in terminated pay status. From this population, we selected a random sample of 200 death alerts for our review. Although the individuals in terminated pay status were no longer receiving benefits when the death alert was generated, we did not exclude these individuals from our population because they could have previously received improper payments based on erroneous dates of death. The following chart summarizes the initial death alerts by payment status.

To accomplish our objectives, we:

• reviewed the applicable sections of the Act, Code of Federal Regulations, and POMS;

As part of our review, we verified the information on the death alerts against SSA’s beneficiary and payment records. For the individuals who were deceased, we determined the amount of payments after death and reviewed the actions taken by SSA to recover these amounts over a period of time. In addition, we determined whether the payments after death were disbursed before receipt of a death report, within 30 days of the initial death alert, or over 30 days after the initial death alert.

We performed audit work in Baltimore, Maryland, and Richmond, California, between November 2001 and April 2002. The entity audited was the Office of Program Benefits within the Office of the Deputy Commissioner for Disability and Income Security Programs. We conducted our audit in accordance with generally accepted government auditing standards.

Results of Review

SSA needs to improve its controls and procedures to ensure that (1) death alerts are resolved in a timely and consistent manner, and (2) improper payments are recovered after the death of a beneficiary. Because of delays in receiving death reports from Federal and State agencies and processing reclamation actions with Treasury, SSA is vulnerable to individuals who negotiate payments received after the death of a beneficiary.

Based on a random sample of 200 death alerts from July to December 1999, we found that SSA disbursed $216,327 in payments after death. Of this amount, SSA had not recovered $8,141 as of March 2002. Projecting these results to our population of 65,809 death alerts, we estimate that SSA disbursed about $71.2 million in payments after death, of which SSA was unable to recover about $2.7 million. During our review, we found no evidence to indicate that the nature and extent of death alerts in the second half of 1999 were not representatives of those in the first half of 1999. Therefore, our estimates for calendar year (CY) 1999 are twice as much as our projections for the second half of 1999. Accordingly, we estimate that SSA disbursed about $142.4 million in payments after death in CY 1999, of which SSA had not recovered about $5.4 million as of March 2002 (see Appendix A). The results of our review are summarized below.

In CY 1999, we estimate that SSA disbursed about $86.3 million (60.6 percent) before it received a death report (that is, between the date of death and date of alert). This occurred because of delays in receiving death reports from Federal and State agencies. We also estimate that SSA disbursed about $42.2 million (29.6 percent) during the 30-day period for processing death alerts. This occurred because of timing differences between the dates in which SSA processed the alerts and disbursed the payments. In addition, we estimate that SSA disbursed about $13.9 million (9.8 percent) over 30 days after death alert was generated. This occurred because of delays in processing death alerts by FOs. The following chart provides a breakdown of the total payments after death.

Of the 200 death alerts in our sample, 160 alerts resulted in improper payments to deceased beneficiaries. In 40 of the 160 cases, SSA promptly received the death reports from Federal and State agencies before any payments after death were disbursed. However, in 120 cases, SSA did not receive the death reports in a timely manner. As a result, these individuals received $131,184 in payments to which they were not entitled.

Our review disclosed that delays in receiving death reports contributed significantly to the total payments after death. As depicted in the chart below, the elapsed time from the date of death to the date of alert varied considerably based on the source of the death report. For the individuals in current pay status, we determined that the average length of time to receive death reports from Federal agencies and State agencies was 53 and 75 days, respectively.

The death registration process requires that hospitals, medical examiners, coroners, and funeral homes submit reports of death to local registrars (for example, county recorder’s offices). Each State BVS consolidates death data from local registrars before reporting such information to SSA. This process is susceptible to errors and delays because of the manual processing of paper records and limited systems interface between these entities.

In September 1999, SSA contracted with NAPHSIS to develop standards and guidelines for a nationwide EDR system, including the on-line verification of SSNs. This system would enable SSA to receive death reports within 5 days of death and 24 hours of receipt in the State BVS. Under EDR, SSA verifies the SSN with the State BVS at the beginning of the death registration process. For death reports with verified SSNs, SSA may take immediate termination action upon receipt of the report. For death reports with unverified SSNs, SSA must independently verify the accuracy of the report before initiating termination action.

This system would automate the death registration process and enable SSA to receive more timely and accurate death reports, resulting in significant program and workyear savings. In addition, EDR provides the infrastructure for other Federal and State agencies that rely on such information to detect and prevent erroneous payments to deceased individuals. These agencies include the Department of Defense, Office of Personnel Management, Railroad Retirement Board, Veterans Administration, and State food stamp agencies.

SSA recently included EDR as part of its key initiative for information exchange to support the strategic goals and objectives of the Agency. The purpose of this initiative is to increase electronic access to information needed to administer SSA’s programs and improve service delivery to the public. We commend SSA for its commitment to develop, support, and implement EDR and reduce the potential for payments after death.

However, SSA needs to implement a number of systems modifications to realize the benefits of EDR. For example, SSA’s automated systems are not equipped to support the on-line verification of SSNs. Such a system is necessary for SSA to take immediate termination action without independent verification of the death report. SSA should also modify its title II and title XVI software programs to automatically terminate benefits when it receives a verified State death report. In addition, SSA should modify DACUS to differentiate between a verified and unverified State death report.

Furthermore, SSA needs to encourage State BVS agencies to establish EDR systems. To achieve the projected savings from EDR, it is imperative that SSA obtain broad participation of State BVS agencies on a nationwide basis. Unless SSA demonstrates that the benefits of EDR outweigh its costs, State BVS agencies may be unwilling to adopt such a system. Although SSA provided partial funding to New Hampshire and Washington, DC, additional funding is necessary to establish EDR in the remaining States. SSA needs to work with other Federal and State agencies to obtain funding for EDR, especially since many of these agencies rely on death information to detect and prevent erroneous payments to deceased individuals.

Of the 200 death alerts in our sample, 160 alerts resulted in improper payments to deceased beneficiaries. In 69 cases, SSA did not disburse any payments after the death alert was generated. However, in 91 cases, SSA disbursed payments within 30 days of the initial death alert. Although SSA generally resolved the alerts in a timely manner, our review disclosed that the termination actions were not initiated or completed until after the monthly payments had already been disbursed. As a result, these individuals received $64,046 in payments to which they were not entitled.

POMS states that FOs should take prompt action to clear all death alerts, including initial and follow-up alerts, within 30 days to minimize incorrect payments. For the 91 cases in our sample, we commend SSA for its corrective actions to resolve the death alerts in accordance with these time frames. However, because of timing differences between the dates in which SSA processed the alerts and disbursed the payments, these actions were not always sufficient to prevent improper payments to deceased beneficiaries.

In some instances, SSA initiated termination actions at the beginning of the 30-day period but was unable to complete such actions before the payment for the month was disbursed. In other instances, SSA did not initiate termination actions until the end of the 30-day period and had already disbursed the payment for the month. By processing these alerts as expeditiously as possible, SSA could minimize the payments after death, thereby alleviating the workload necessary to establish and recover improper payments.

Of the 200 death alerts in our sample, 160 alerts resulted in improper payments to deceased beneficiaries. In 142 cases, SSA resolved the death alerts in a timely manner. However, in 18 cases, SSA did not take prompt corrective action to resolve the alerts within 30 days. As depicted in the chart below, the amount of time required to resolve the death alerts range from 1 to 4 months. During this period, these individuals remained in current pay status until the termination actions were subsequently processed. As a result, these individuals received $21,097 in payments to which they were not entitled.

SSA’s procedures state that FOs should resolve death alerts within 30 days to minimize incorrect payments. Specifically, POMS states that FOs should initially attempt one telephone contact to the beneficiary’s residence. If the telephone contact is unsuccessful, the FO should mail a "come-in" letter to request a face-to-face interview. If the beneficiary does not respond within 20 days, the FO should suspend benefits. POMS requires FOs to obtain a death certificate only when the beneficiary is alleged to be alive.

However, our review disclosed that FOs were not fully aware of, and did not always comply with, the applicable procedures for resolving death alerts. For example, two FOs informed us that they initially contacted the local registrar rather than the beneficiary’s residence to resolve the alert. In fact, the FOs usually did not contact the beneficiary’s residence at all. In addition, two FOs informed us that they did not suspend benefits after 20 days if there was no response to the "come-in" letter. Instead, the FOs allowed the beneficiaries to remain in current pay status.

Under current procedures, the FO mails the "come-in" letter only after DACUS generates the death alert and the FO contacts the beneficiary’s residence. The FO suspends benefits only after the beneficiary does not respond to the "come-in" letter within 20 days. During our review, we noted that these actions may require several months to complete, especially if the FO does not process the death alert, contact the beneficiary, mail the "come-in" letter, and/or suspend benefits in a timely manner.

Although EDR may provide a solution for the long term, we believe that SSA needs to evaluate other alternatives for the short term. SSA employees informed us that systems modifications could reduce the potential for errors and delays. For example, SSA could modify its automated systems to simultaneously issue the "come-in" letter to the beneficiary along with the death alert to the FO. In addition, SSA could modify its automated systems to automatically suspend benefits after 20 days if there is no response to the "come-in" letter. Such modifications should improve the death reporting system and prevent payments after the death of a beneficiary.

Of the 200 death alerts in our sample, 160 alerts resulted in improper payments to deceased beneficiaries. In 154 cases, SSA subsequently recovered the full amount of payments owed to the Agency. However, in six cases, SSA did not recover $8,141 in payments after death. As of March 2002, our review disclosed that SSA made partial recoveries in four cases and no recoveries in two cases. These payments remained outstanding for at least 27 months after the date of death. The recovery of payments after death is summarized in the following chart.

Most payments after death are incorrect payments. For these cases, SSA electronically submits the Form SF-1184 to Treasury. Upon receipt of the Form SF-1184, Treasury attempts to reclaim payments from financial institutions. If the full amount of the payment is not recovered, Treasury provides SSA with the name of the individual who withdrew the funds from the beneficiary’s account. Thereafter, the responsibility for collecting any outstanding amounts shifts to SSA. Moreover, some payments after death are legally-defined overpayments (for example, payments to representative payees who receive benefits on behalf of deceased beneficiaries). For these cases, SSA attempts to obtain repayment or adjust current benefits to collect amounts owed to the Agency.

In four of the six cases, Treasury was responsible for recovering the incorrect payments from the financial institutions. In addition, SSA was responsible for recovering any outstanding amounts from the individuals who withdrew the funds from the beneficiary’s account. However, because of delays in processing reclamation actions with Treasury, SSA was unable to recover these payments. In some instances, PCs did not follow up on the Form SF-1184 in a timely manner. In other instances, PCs attempted to follow up but discontinued such efforts over a period of time.

In two of the six cases, SSA was responsible for recovering the overpayments from the representative payees. However, because PCs did not use the debt collection tools available to the Agency, SSA was unable to recover these payments. In one instance, SSA contacted the representative payee but did not pursue other tools to collect the debt. In another instance, SSA established the overpayment but did not withhold a retroactive check to recover the amounts owed. To prevent future occurrences of similar problems, PCs should follow up on the status of reclamation actions with Treasury to ensure that payments after death are recovered.

The Debt Collection Improvement Act of 1996 provided SSA with additional tools to maximize the collection of delinquent debts owed to the Agency. However, the General Accounting Office previously reported that SSA has not effectively used a number of debt collection tools, including tax refund offsets, administrative offsets, credit bureau reporting, collection agencies, interest and penalties, and administrative wage garnishment. As a result, SSA did not recover as much in overpayments as it could have. We believe that PCs should maximize the use of these debt collection tools to recover payments after the death of a beneficiary.

Conclusions and Recommendations

Based on a random sample of 200 death alerts from July to December 1999, we found that SSA disbursed $216,327 in payments after death. Of this amount, SSA had not recovered $8,141 as of March 2002. Projecting these results to our population of 65,809 death alerts, we estimate that SSA disbursed about $71.2 million in payments after death, of which SSA was unable to recover about $2.7 million. For CY 1999, we estimate that SSA disbursed about $142.4 million in payments after death. Of this amount, SSA had not recovered about $5.4 million as of March 2002 (see Appendix A).

Although SSA has undertaken a number of initiatives to improve its death reporting system, we believe that actions are necessary to strengthen program integrity and deter fraud, waste, and abuse. These actions should reduce the potential for errors and delays in receiving death reports, processing death alerts, and recovering payments after death. Therefore, we recommend that SSA:

In its response, SSA agreed with six of the seven recommendations. Specifically, SSA agreed to obtain systems support for EDR and stated that full implementation is scheduled for September 2003. SSA is working with NAPHSIS to develop and implement EDR systems and plans to award additional contracts to States in September 2002. In addition, SSA is working with the National Centers for Health Statistics to obtain sources of funding for EDR.

By September 2002, SSA agreed to issue a memorandum to remind its employees to process all death alerts in a timely manner and follow up on reclamation actions with Treasury to ensure that payments after death are recovered. SSA also agreed that debt collection tools should be used to the extent possible. Furthermore, SSA initiated an Information Technology project to facilitate the use of authorized debt collection tools available to the Agency.

However, SSA disagreed with our recommendation to evaluate the feasibility of systems modifications to (1) simultaneously issue the "come-in" letter along with the death alert, and (2) automatically suspend benefits if there is no response to the "come-in" letter. SSA stated that the corrective actions for other recommendations in the report should address the concerns raised in this recommendation. SSA also provided technical comments that have been incorporated into the final report. The text of SSA’s comments is included in Appendix B.

SSA’s planned actions generally addressed our recommendations. Although EDR may provide a solution for the long term, we believe that SSA should evaluate other alternatives for the short term. Therefore, we encourage SSA to reassess the feasibility of systems modifications to further automate the death reporting process.

Appendices

Sampling Methodology

We obtained electronic copies of the initial death alerts generated by the Social Security Administration’s (SSA) Death Alert, Control, and Update System from July to December 1999. For the beneficiaries who were deceased, we determined the amount of payments after death and reviewed the actions taken by SSA to recover these amounts over a period of time. In addition, we determined whether the payments after death were disbursed before receipt of a death report, within 30 days of the initial death alert, or over 30 days after the initial death alert.

Based on a random sample of 200 death alerts from July to December 1999, we found that SSA disbursed $131,184 before it received a death report (that is, between the date of death and date of alert). In addition, SSA disbursed $64,046 during the 30-day period for processing alerts and $21,097 over 30 days after the death alert was generated. By adding these amounts, we found that SSA disbursed $216,327 in payments after the death of a beneficiary. Of this amount, SSA had not recovered $8,141 as of March 2002.

Projecting these results to our population of 65,809 death alerts, we estimate that SSA disbursed about $43.2 million before it received a death report, $21.1 million during the 30-day period for processing alerts, and $6.9 million over 30 days after the death alert was generated. By adding these amounts, we estimate that SSA disbursed about $71.2 million in payments after death from July to December 1999. Of this amount, we estimate that SSA had not recovered about $2.7 million as of March 2002.

During our review, we found no evidence to indicate that the nature and extent of death alerts in the second half of 1999 were not representative of those in the first half of 1999. Therefore, our estimates for calendar year (CY) 1999 are twice as much as our projections for the second half of 1999. Accordingly, we estimate that SSA disbursed about $86.3 million before it received a death report, $42.2 million during the 30-day period for processing alerts, and $13.9 million over 30 days after the death alert was generated. By adding these amounts, we estimate that SSA disbursed about $142.4 million in payments after death in CY 1999. Of this amount, we estimate that SSA had not recovered about $5.4 million as of March 2002. The following tables provide the details of our sampling results and statistical projections.

The point estimate represents the statistical projection of the sample results to the population for the death alerts generated during the 6-month period from July 1999 to December 1999. All statistical projections are reported at the 90 percent confidence level.

Appendix B

Agency Comments

OIG Contacts and Staff Acknowledgments

Bill Fernandez, Director, Western Audit Division, (510) 970-1739
Jack H. Trudel, Deputy Director, (510) 970-1733

In addition to those named above:

Joseph I. Robleto, Senior Auditor