Background

In fiscal year (FY) 2012, we obligated $11,567 million to administer the Retirement and Survivors Insurance, Disability Insurance, and Supplemental Security Income programs. These costs largely consisted of payroll and benefits and included payments to State agencies for Disability Determination Services and other administrative expenses, such as travel and rents.

FY 2012 Administrative Expenses (dollars in millions)
Payroll and Benefits $6,422
State DDS $2,076
American Recovery and Reinvestment Act $29
Other Administrative Expenses* $3,069
Total Administrative Expenses $11,596
Notes:

*Other Administrative Expenses includes Vendor, Travel, Transportation, Rents, Communications and Utilities, Printing and Reproduction, Other Services, Supplies and Materials, Equipment, Land and Structure, Grants, Subsidies and Contributions, Information Technology Systems, OASI and DI Trust Fund Operations, Other Dedicated Accounts, Other Reimbursable, Interest and Dividends, and Insurance Claims and Indemnities.

Risk Assessment

We conducted a risk assessment on each of the categories in the table above and determined that our administrative payments are not at a significant risk of improper payments. Through combining this risk assessment with our strong internal controls, along with a number of financial audits that indicated no weaknesses in our process, we demonstrate that our administrative payments do not meet the criteria for further reporting to Congress or the Office of Management and Budget.