SSA conducts this match annually. For example, SSA’s fiscal year 1996 payment accuracy study shows that out of a total of $1.6 billion in overpayments, approximately 40 percent (nearly $647.6 million) was the result of nondisclosed earnings and financial accounts. About $379.5 million of these overpayments occurred because SSI clients did not disclose their earnings and $268.1 million occurred because SSI clients did not disclose their financial accounts. SSA conducts a second annual payment accuracy study, which contains more detailed information on the amount of overpayments in the SSI program. SSA could obtain such information by using new data sources on earnings and by enhancing its current computer-matching procedures. Because of the age of the data used in the match, these matches can detect only undisclosed earnings that were received 6 to 21 months in the past. OCSE uses this information to identify those parents who could make child support payments. SSA could also reduce the number and duration of earnings overpayments to ongoing recipients by using the new earnings data in a more fully automated computer matching process. More Current and Comprehensive Information on Financial Accounts May Be Available

As is the case with earnings, SSA’s present data sources and procedures for detecting undisclosed financial accounts do not provide up-to-date and comprehensive information on the accounts of applicants and recipients. Detection of such accounts, both at the application stage and once recipients are on SSI’s rolls, would prevent many of these overpayments and reduce the number and duration of others. SSA’s Present Approach to Detecting Undisclosed Financial Accounts Relies on Old Data

SSA’s current approach to identifying financial accounts can result in ineligible individuals getting on SSI’s rolls and remaining there for long periods of time. In addition to preventing significant overpayments, the agency would save the costs associated with processing invalid claims and determining medical and vocational disability for ineligible applicants. Conclusions

The two OCSE earnings databases, as well as data from the financial institution industry, would provide SSA with information needed to prevent or reduce overpayments resulting from undisclosed earnings and financial accounts. Study the feasibility of obtaining computerized information from financial institutions to detect financial accounts that SSI clients do not report during the application process and during subsequent determinations of eligibility. Field staff could use these databases to prevent overpayments by checking for undisclosed earnings at the time of application. He responded in the affirmative, stating that he would like us to examine (1) the extent to which overpayments occur because SSI applicants and recipients fail to disclose their earnings and financial accounts, (2) whether SSA could obtain more current and comprehensive information than it does now to detect the nondisclosure of earnings, and (3) whether the agency could also obtain more current and comprehensive information on financial accounts. We also interviewed government officials to determine to what extent the earnings information from the OCSE databases would be more current and comprehensive than the data presently used by SSA to verify earnings information reported by SSI clients.
Why GAO Did This Study

Pursuant to a congressional request, GAO conducted a follow-up review on the feasibility of the Social Security Administration (SSA) using new data sources on earnings and financial account information to determine applicants' eligibility for the Supplemental Security Income (SSI) program, focusing on: (1) the extent to which overpayments occur because SSI clients fail to disclose their earnings and financial accounts; (2) whether SSA could obtain more current and comprehensive information to detect undisclosed earnings; and (3) whether the agency could obtain more current and comprehensive information on undisclosed financial accounts.

What GAO Found

GAO noted that: (1) unreported or underreported earnings and financial accounts continue to result in significant overpayments in the SSI program; (2) according to SSA's overpayment data, the failure of SSI clients to disclose earnings and financial accounts was responsible for approximately 40 percent of the $1.6 billion in overpayments identified for fiscal year 1996; (3) specifically, about $379.5 million in overpayments was the result of SSI clients not fully disclosing their earnings, and $268.1 million was the result of clients not disclosing financial account information; (4) more current and comprehensive information is now available to detect undisclosed earnings; (5) SSA detects overpayments resulting from undisclosed earnings primarily by matching information provided by SSI clients with earnings data used in the administration of other government programs; (6) however, computerized matches, which are not done until individuals are on SSI's rolls, have built-in delays in detecting overpayments that range from 6 to 21 months; (7) two databases developed for use by the Office of Child Support Enforcement (OCSE) could provide SSA with more current and comprehensive earnings information; (8) SSA could check these databases prior to placing applicants on the rolls and thereby prevent overpayments caused by applicants failing to disclose earnings at the time of application; (9) these databases would also allow SSA to detect occurrences of undisclosed earnings to ongoing recipients within 4 to 6 months and thereby reduce the number and duration of the corresponding overpayments; (10) opportunities for improved financial account information also exist; (11) SSA detects undisclosed financial accounts by conducting computer matches once a client's eligibility has been established; (12) this match, however, can only detect undisclosed accounts that existed 9 to 21 months before; (13) SSA could obtain up-to-date information on the financial accounts of SSI clients from financial institutions by accessing the nationwide telecommunication network, which links all financial institutions; (14) such information would help ensure that applicants whose bank accounts would make them ineligible for the program do not gain eligibility; and (15) by eliminating ineligible individuals at the point of application, SSA could avoid the expense of determining medical and vocation disability and could also reduce the number and duration of overpayments to ongoing recipients who are overpaid because of newly acquired financial accounts or increases in existing ones.