Audit Report Essays

2367 Words Oct 31st, 2012 10 Pages
OFFICE OF THE INSPECTOR GENERAL
THE SOCIAL SECURITY
ADMINISTRATION’S UNPROCESSED ANNUAL EARNINGS
ENFORCEMENT SELECTION
August 2012

AUDIT REPORT
Introduction
This is a report of my audit on Social Security Administration’s Unprocessed Annual Earnings practice. The audit was conducted by Olayinka Olagundoye, of Houston, Texas Audit during August 2012.
Objective My audit was to (1) to assess Social Security Administration's (SSA) development in resolving 2.5 million earnings enforcement selections. (2) To determine the amount of improper payments to affected beneficiaries.
Background
The social security benefits objective is to give earnings to a person or family due to loses from reaching full retirement age. How much
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Title II of the Social Security Act requires that SSA use of an Annual Earnings Test (AET) to measure the extent of beneficiaries’ retirement and determine the amount to deduct from their monthly benefits. Its purpose is to keep the retired out of destitution. The area I audited were the two earnings test provided by the Act, which are as follows * for beneficiaries under full retirement age; * for beneficiaries in the year they attain full retirement age.
To test if any erroneous amounts exist, I verified if the EEO program checked the amount of earnings that are used for the AET (called enforceable earnings). Section 203 of SSA- 131states unless SSA has prior notification that wages postings do not count in applying the AET, use the entire amount on the SSA record to initiate earnings enforcement actions resulting in incorrect benefit adjustments. SSA developed the SSA-131 for employers to report special wage payments, which gives SSA the information needed to pay benefits correctly. First, the EEO program is effective in conducting this audit because I was able to determine if enforceable earnings are greater than the annual exempt amount and different from the amount recorded on the Master Beneficiary Record (MBR). Second, if the records met qualification during my verification process of the EEO, then the records can go through the next stage of the process, which is the SSA’s Automated Job Stream (AJS 3) program. The AJS 3 makes

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