Report Summary

Social Security Administration Office of the Inspector General

March 2009

Administrative Costs Claimed by the Pennsylvania Bureau of Disability Determination

(A-15-09-19021)

Objective

To evaluate the Pennsylvania Bureau of Disability Determination (PA-BDD) internal controls over the accounting and reporting of administrative costs, determine whether costs claimed were allowable and properly allocated and funds were properly drawn, and conduct a limited assessment of the general security controls environment.

Background

The Disability Insurance and Supplemental Security Income programs require disability determinations performed by disability determination services in each State or other responsible jurisdiction.  Such determinations are required to be performed in accordance with Federal law and underlying regulations.  The Social Security Administration (SSA) reimburses the disability determination services for 100 percent of allowable reported expenditures up to its approved funding authorization.

Our Findings

Based on our examination, we concluded the Pennsylvania Department of Labor and Industry (PA-L&I) and PA-BDD complied with laws, regulations, policies and procedures governing expenditures and obligations for SSA’s disability program for Federal Fiscal Years 2006 and 2007.  Also, PA-L&I and PA-BDD had adequate internal controls over accounting and reporting of administrative costs, costs claimed were allowable and properly allocated, funds were properly drawn and the general security controls environment was acceptable.  Therefore, we are not making any recommendations to SSA.