Flaws in Controls Over the Supplemental Security Income Computerized System Cause Millions in Erroneous Payments

HRD-79-104: Published: Aug 9, 1979. Publicly Released: Aug 9, 1979.

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Internal control weaknesses over the Social Security Administration's (SSA) computer system have resulted in over $25 million in erroneous benefit payments to Supplemental Security Income recipients. Administration of the Supplemental Security Income program depends on a highly complex computerized system.

Currently, over 4 million persons receive Supplemental Security Income benefits that are automatically computed based on the information housed in the computerized system's automated records. Since recipient information can change monthly, it must be closely controlled to make sure that correct benefit payment amounts are made. The SSA designed an automated exception control process to help assure that all Supplemental Security Income claims and post eligibility events are accurately entered and correctly posted to the computerized system's automated database. However, the process does not always work, and inaccurate beneficiary data can be entered and used to compute benefit payment amounts. Instructions are inconsistent concerning the appropriate actions needed to correct inaccurate beneficiary data, thus causing confusion at field offices. Based on recipient records existing as of September 1978, it is estimated that about $20 million in erroneous payments have occurred in the Supplemental Security Income program because of inadequate controls in the automated data exchange with the Retirement, Survivors, and Disability Insurance computerized system.

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