**SOCIAL SECURITY ADMINISTRATION**

**CFDA 96.001 SOCIAL SECURITY\--DISABILITY INSURANCE (DI)**

**CFDA 96.006 SUPPLEMENTAL SECURITY INCOME (SSI)**

**I. PROGRAM OBJECTIVES**

The Social Security Administration (SSA) is responsible for disability
determinations under the Disability Insurance (DI) and the Supplemental
Security Income (SSI) programs. The DI program was established in 1954
under Title II of the Social Security Act and provides benefits to
disabled wage earners and their families in the event the family wage
earner becomes disabled (Section 221 of the Social Security Act). In
1974, Congress enacted Title XVI, the SSI program, which provides
benefits to financially needy individuals who are aged, blind or
disabled (Section 1633 of Social Security Act).

**II. PROGRAM PROCEDURES**

The disability process begins when a person, referred to as a claimant,
completes a claim for DI or SSI benefits. SSA field office staff
verifies the claimant's non-medical eligibility. The claim is then
forwarded to the State Disability Determination Services (DDS) for a
medical determination of disability. To assist in making proper
disability determinations, the DDS is authorized to purchase medical
examinations, x-rays and laboratory tests on a consultative basis to
supplement evidence obtained from the claimants' physicians or other
treating sources.

SSA pays the DDS for 100 percent of the costs incurred in making
disability determinations. Each year the State DDS submits a budget
request to SSA for review and approval. The DDS is notified of budget
approval by Form SSA-872, *State Agency Budget Approval for SSA
Disability Programs*. Once approved, the DDS is allowed to withdraw
Federal funds through the Department of the Treasury's Automated
Standard Application for Payment system to meet immediate program
expenses. At the end of each quarter of each fiscal year, the DDS
submits a Form SSA-4513, *State Agency Report of Obligations for SSA
Disability Programs*, to account for program disbursements and
obligations and a Form SSA-4514, *Time Report of Personnel Services for
Disability Determination Services*, to account for employee time.

**III. COMPLIANCE REQUIREMENTS**

**In developing the audit procedures to test compliance with the
requirements for a Federal program, the auditor should first look to
Part 2, Matrix of Compliance Requirements, to identify which of the 14
types of compliance requirements described in Part 3 are applicable and
then look to Parts 3 and 4 for the details of the requirements.**

**A. Activities Allowed or Unallowed**

> DDSs make disability determinations based on the law and regulations
> and on written guidelines issued by SSA. Each State making disability
> determinations is entitled to receive from the Trust funds
> reimbursement for the cost of making those disability determinations
> for SSA. Activities shall be in accordance with the budget request
> approved by SSA. Purchased medical services, such as Medical Evidence
> of Record (MER) and Consultative Examinations (CE), must be in
> accordance with the DDS's fee schedule for purchased medical services.
> Activities allowed under the disability programs include personnel
> services, purchased medical services, indirect costs and other
> non-personnel costs (42 USC 421 (e) and (f); 20 CFR section 404.1626).

**B. Allowable Costs/Cost Principles**

> 1\. *Direct Costs* - The SSA Program Operations Manual System (POMS)
> contains guidance on direct costs for both the DI and SSI programs.
> Personnel services (POMS DI 39518) include personnel costs and
> employee benefits. Purchased medical services (POMS DI 39545) include
> MER and CE. Other non-personnel costs include travel (POMS DI 39524),
> space (POMS DI 39527), equipment (POMS DI 39530), and contracted
> services (POMS DI 39542).
>
> 2\. *Indirect Costs* - Indirect costs which may be charged to the
> disability program generally arise from three sources: (a)
> administrative costs of the parent agency related to DDS; (b) business
> costs associated with the accounting, billing, and procurement
> services provided by the parent agency for the DDS; and (c) automated
> services provided to the DDS that are operated by the parent agency.
> Indirect costs charged to the disability program should be based on
> the rate approved by the cognizant Federal agency as evidenced by a
> written agreement.
>
> 3\. *Non-SSA Work* - Some DDSs make disability determinations for
> claims not related to SSA benefits. When a DDS performs non-SSA work,
> a Memorandum of Understanding should exist between the State and the
> SSA Regional Commissioner that outlines the specifics of the non-SSA
> work. The SSA should not be charged the costs on the non-SSA program
> work (POMS DI 39563).

**L. Reporting**

> **1. Financial Reporting**
>
> a\. SF-269, *Financial Status Report* - Not Applicable
>
> b\. SF-270, *Request for Advance or Reimbursement* - Not Applicable
>
> c\. SF-271, *Outlay Report and Request for Reimbursement for
> Construction Programs* - Not Applicable
>
> d\. SF-272, *Federal Cash Transactions Report* - Not Applicable
>
> e\. SSA-4513, *State Agency Report of Obligations for SSA Disability
> Programs (OMB No. 0960-0421)* - This report is due quarterly for each
> fiscal year still open in order to account for program disbursements
> and unliquidated obligations (20 CFR section 404.1625(a); POMS DI
> 39506.202).
>
> f\. SSA-4514, *Time Report of Personnel Services (OMB No.
> 0960-0421)* - This report is due quarterly to account for employee
> time (POMS DI 39506.230).
>
> **2. Performance Reporting** - Not Applicable
>
> **3. Special Reporting** - Not Applicable

**IV. OTHER INFORMATION**

Disbursements for the DI and SSI programs are not accounted for
separately. Expenditures for both programs should be reported on the
Schedule of Expenditures of Federal Awards under DI (CFDA 96.001).