	Background

The SSI program pays benefits to the aged, blind or disabled adults, and  children who have limited income and resources. Our analysis of income reported in  the NDNH initially showed that SSA made $19 million in potential SSI  overpayments to 10,187 SSI recipients in fiscal year 2010, but  approximately 70 percent of the total overpayment amount showed  indications of possible SSN misuse, such as individuals with wages  reported from employers in multiple states during the same quarter, so we  were unable to determine whether the recipients actually received SSI  overpayments. Using a different methodology that includes  additional causes of overpayments not considered in GAO’s analysis,  SSA estimated to have made $3.3 billion in SSI overpayments in fiscal  year 2010. We  determined that for our potential overpayment population of 10,187  recipients, wages for 2,399 SSI recipients were reported solely by  employers located outside the recipient’s state of residence. For  example, as shown in figure 2 below, one individual living in California  had wages reported in the NDNH from 11 different employers in seven  other states that were many miles away during the same quarter of  calendar year 2010. This suggests that multiple individuals may have  been using the SSI recipient’s SSN and name for work purposes. DHS is responsible  for granting aliens permission to work in the United States, and for  enforcing compliance of employers with immigration laws. Although SSA is able to identify possible SSN misuse for SSI recipients  when alert notices are generated and wages are ultimately disclaimed by  the recipient, SSA has previously reported that privacy and disclosure  issues have limited its ability to combat SSN misuse. Our analysis shows that reviewing these discrepancies  between income reported by SSI recipients and income reported by  employers at a summary level can provide important information on  certain employers that have a high incidence of reporting inaccurate  wages for SSI recipients, indicating possible SSN misuse. Obtaining  legislative authority to enable the sharing of information regarding  potential unauthorized employment, including about employers who file  high numbers of wage statements with potentially misused SSNs, could  enhance SSA’s ability to address SSN misuse and help DHS better target  its work-site enforcement efforts. Recommendation for Executive Action

To help strengthen SSA’s efforts to monitor the SSI program, and pay  accurate SSI benefits, as well as to enhance DHS’s investigative efforts  on behalf of its work-site enforcement strategy, we recommend that the  Acting Commissioner of Social Security work with the Secretary of  Homeland Security to identify the specific data useful to DHS’s work-site  enforcement strategy, including the new summary information that we  identified on employers who file high numbers of wage reports with  potentially misused SSNs, along with the corresponding privacy and  disclosure restrictions, and seek legislative authority to allow the  Secretary to obtain such information, as appropriate. This report examines potential  Supplemental Security Income (SSI) overpayments by comparing Social  Security Administration (SSA) data with income reported in the National  Directory of New Hires (NDNH) database and identifies indicators of  possible Social Security number (SSN) misuse. For our prior work on SSA’s programs, SSA had provided us with a file  containing SSI recipients as of December 2010 and the matching income  information from both the quarterly wage and unemployment insurance  component of the NDNH database that included fiscal year 2010. Of our population of SSI recipients that we identified who were reported  as receiving wages from a different state than the state of residence that  was reported on their SSA record during the same quarter, we analyzed  the Employer Identification Number (EIN) for their employers and found  nine employers who had 15 or more SSI recipients who lived out of state  working for that employer in the 2nd quarter of 2010. 1. 3. 4. As mentioned in the report, we state that the exact number of  individuals who received SSI overpayments and the exact amount of  overpayments made to those individuals cannot be determined  without detailed case investigations by SSA.
Why GAO Did This Study

In fiscal year 2012, SSA estimated it paid over $53.4 billion to SSI recipients, of which 8.1 percent, or $4.3 billion, SSA estimated to have been improper payments. The SSI program pays benefits to the aged, blind or disabled adults and children with limited income and resources.
GAO was asked to analyze potentially improper SSA disability payments. This report identifies potential SSI overpayments and indicators of possible SSN misuse. SSA provided GAO with a onetime file extract of SSI recipients as of December 2010 and the matching income from both the quarterly wage and unemployment insurance components of the NDNH database that included fiscal year 2010. GAO compared the SSI benefit and NDNH income data to identify potential overpayments. GAO randomly selected five individuals for case-file review. These cases cannot be projected to the overpayment population but provide illustrative examples of possible SSN misuse.

What GAO Found

GAO's analysis of wages reported in the National Directory of New Hires (NDNH) initially showed that the Social Security Administration (SSA) made $19 million in potential overpayments to 10,187 recipients through its Supplemental Security Income (SSI) program in fiscal year 2010. Using a different methodology that includes additional causes of overpayments not considered in GAO's analysis, SSA estimated it made $3.3 billion in SSI overpayments in fiscal year 2010. The majority (70 percent) of the estimated overpayment amount GAO identified showed indications of possible Social Security number (SSN) misuse, such as employers reporting wages for recipients in multiple locations during the same quarter. For example, GAO determined that wages for 2,399 SSI recipients were reported solely by employers outside the recipient's state of residence. As the figure below shows, one individual in California had wages reported from 11 different employers in seven other states during the same quarter of calendar year 2010. This suggests that multiple individuals may be using the SSI recipient's SSN and name for work. The exact number of individuals who received overpayments and the exact amount of overpayments made to those individuals cannot be determined without detailed case investigations by SSA. GAO analyzed five recipient cases and provided the results to SSA.
GAO analyzed employers with wages for SSI recipients from outside the recipient's state and found nine employers who reported wages for 15 or more SSI recipients during the same quarter who lived in different states from the employer's location. For example, a plant located in one state reported wages for 22 SSI recipients who lived in six other states, indicating possible SSN misuse. SSA has previously reported that privacy and disclosure issues have limited its ability to routinely share information with the Department of Homeland Security (DHS), which is responsible for enforcing employer compliance with immigration laws through its work-site enforcement strategy. Reviewing SSI wages at a summary level can provide information on certain employers that have high incidences of inaccurate wage reports. The ability to share information regarding potential unauthorized employment could enhance SSA's ability to address SSN misuse and help DHS better target its work-site enforcement efforts.

What GAO Recommends

GAO recommends that the Acting Commissioner of Social Security work with the Secretary of Homeland Security to identify the data useful to DHS's work-site enforcement strategy and seek legislative authority to obtain such information, as appropriate. DHS agreed with GAO's recommendation and SSA agreed to the intent of the recommendation, but did not agree to seek legislative authority. GAO still believes this recommendation is valid as discussed in the report to help the federal government better utilize the complementary sources of data available at SSA.