Social Security Administration: Status of Achieving Key Outcomes
and Addressing Major Management Challenges (15-JUN-01,
GAO-01-778).
GAO reviewed the Social Security Administration's (SSA) fiscal
year 2000 performance report and fiscal year 2002 performance
plan to assess SSA's progress in achieving five selected key
outcomes identified as important mission areas for the SSA. The
five key outcomes are (1) providing timely, accurate, and useful
information and services to the public, (2) making disability
determinations more timely and accurate, (3) reducing long-term
disability benefits because people return to the workplace, (4)
providing timely information to decisionmakers to address program
policy issues such as long-term trust fund solvency, and (5)
reducing fraud, waste, and error in the Supplemental Security
Income (SSI) program. GAO assessed the progress SSA has made in
achieving these outcomes and its strategies for achieving them,
and compared SSA's fiscal year 2000 performance report and fiscal
year 2002 performance plan with the prior year performance report
and plan for these outcomes. GAO found that (1) SSA lowered and
met its goal for the volume of 800-number calls processed, but
did not report on its progress toward improving 800-number
service accuracy because data were not yet available. SSA's
strategies for meeting its fiscal year 2002 goals included
training customer service staff in ways to improve accuracy on
error-prone issues. However, SSA merged two accuracy indicators,
without sufficient justification, in its fiscal year 2002 plan
which may affect SSA's ability to sufficiently monitor and manage
performance, (2) SSA lowered the targets for about half of its
goals and still did not meet several of them, including those for
the volume and timeliness of disability hearings, (3) SSA's
measures were mainly output-oriented, and did not directly convey
SSA's progress. SSA's fiscal year 2002 strategies in this area
are more results-oriented and include goals and measures that are
more clearly linked to achieving its objectives. However, SSA
has not developed performance goals for several indicators,
including a key outcome goal for the number of disabled SSI
beneficiaries no longer receiving cash benefits, (4) SSA's fiscal
year 2002 strategies are also more results-oriented than in pior
years. The plan also contains goals and measures that are more
clearly linked to achieving its objectives and should help SSA
better track customer satisfaction with its research products,
and (5) SSA's fiscal year 2002 strategies could also be improved
by including additional indicators of its antifraud efforts, such
as tracking the number of civil and monetary penalties levied.
Furthermore, some recent plan revisions may impede SSA's ability
to improve SSI program integrity.
-------------------------Indexing Terms-------------------------
REPORTNUM: GAO-01-778
ACCNO: A01111
TITLE: Social Security Administration: Status of Achieving Key
Outcomes and Addressing Major Management Challenges
DATE: 06/15/2001
SUBJECT: Disability benefits
Fraud
Internal controls
Performance measures
Social security benefits
Strategic planning
Social Security Program
Supplemental Security Income Program
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GAO-01-778
Report to the Ranking Minority Member, Committee on Governmental Affairs, U.
S. Senate
United States General Accounting Office
GAO
June 2001 SOCIAL SECURITY ADMINISTRATION
Status of Achieving Key Outcomes and Addressing Major Management Challenges
GAO- 01- 778
Page i GAO- 01- 778 SSA's Status of Achieving Key Outcomes Letter 1
Appendix I Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges 22
Appendix II Comments From the Social Security Administration 30
Appendix III GAO Contacts and Staff Acknowledgments 35
Table
Table 1: Major Management Challenges 22
Abbreviations
CDR Continuing Disability Review DI Disability Insurance ESF Earnings
Suspense File GPRA Government Performance and Results Act HPI Hearings
Process Improvement OASI Old Age and Survivors Insurance OIG Office of
Inspector General OMB Office of Management and Budget SSA Social Security
Administration SSI Supplemental Security Income SSN Social Security number
WC workers? compensation Contents
Page 1 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
June 15, 2001 The Honorable Fred Thompson Ranking Minority Member Committee
on Governmental Affairs United States Senate
Dear Senator Thompson: As you requested, we reviewed the Social Security
Administration?s (SSA) fiscal year 2000 performance report and fiscal year
2002 performance plan required by the Government Performance and Results Act
of 1993 (GPRA) to assess SSA?s progress in achieving selected key outcomes
that you identified as important mission areas for the agency. 1 We
addressed the same outcomes in our June 2000 review of SSA?s fiscal year
1999 performance report and fiscal year 2001 performance plan to provide a
baseline by which to measure the agency?s performance from year to year. 2
These five selected key outcomes are:
Providing timely, accurate, and useful information and services to the
public;
Making disability determinations more timely and accurate;
Reducing long- term disability benefits because people return to the
workplace;
Providing timely information to decisionmakers to address program policy
issues such as long- term trust fund solvency; and
Reducing fraud, waste, and error in the Supplemental Security Income (SSI)
program.
As agreed, using the selected key outcomes for SSA as a framework, we (1)
assessed the progress SSA has made in achieving these outcomes and its
strategies for achieving them; and (2) compared SSA?s fiscal year 2000
performance report and fiscal year 2002 performance plan with its prioryear
performance report and plan for these outcomes. Additionally, we agreed to
analyze how SSA has addressed its major management
1 Our report is one of a series on the 24 Chief Financial Officers Act
agencies? fiscal year 2000 performance reports and fiscal year 2002
performance plans. 2 Observations on the Social Security Administration?s
Fiscal Year 1999 Performance Report and Fiscal Year 2001 Performance Plan
(GAO/ HEHS- 00- 126R, June 30, 2000).
United States General Accounting Office Washington, DC 20548
Page 2 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
challenges, including the governmentwide high- risk areas of strategic human
capital management and information security that we and SSA?s Inspector
General identified. Appendix I provides detailed information on how SSA
addressed these challenges. Appendix II contains SSA?s comments on a draft
of our report.
SSA reported generally making progress toward achieving its five key
outcomes in fiscal year 2000, albeit to varying degrees. SSA?s current
strategies generally provide a clear picture of its future plans to achieve
the five key outcomes, as outlined below.
Planned Outcome: Providing timely, accurate, and useful information and
services to the public. SSA reported mixed success in meeting its intended
goals related to this key outcome in fiscal year 2000. The pace of SSA?s
progress was unclear in some areas due to continued revisions 3 to prior
indicators and goals and SSA?s inability to provide timely performance data.
For example, SSA lowered and met its goal for the volume of 800- number
calls processed, but did not report on its progress toward improving 800-
number service accuracy because data were not yet available. SSA?s
strategies for meeting its fiscal year 2002 goals included training customer
service staff in ways to improve accuracy on error- prone issues. However,
SSA merged two accuracy indicators, without sufficient justification, in its
fiscal year 2002 plan- payment accuracy for the Old Age and Survivors
Insurance (OASI) and Disability Insurance (DI) programs- which may affect
SSA?s ability to sufficiently monitor and manage performance.
Planned Outcome: Making disability determinations more timely and accurate.
SSA reported mixed success in meeting its intended goals related to this key
outcome in fiscal year 2000. Also, the pace of SSA?s progress was unclear in
some areas due to continued revisions to prior indicators and goals, and
SSA?s inability to provide timely performance data. SSA lowered the targets
for about half of its goals and still did not meet several of them,
including those for the volume and timeliness of
3 Agencies are permitted to revise the performance targets in their
performance plans- based upon congressional action, the occurrence of
unanticipated exigencies, consideration of actual performance data from the
prior year, and other reasons- under GPRA as implemented by OMB Circular No.
A- 11, Part 2: ?Preparation and Submission of Strategic Plans, Annual
Performance Plans, and Annual Program Performance Reports,? July 19, 2000.
Results in Brief
Page 3 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
disability hearings. SSA?s strategies for meeting its fiscal year 2002 goals
in this area were generally clear, and included increasing the decision
authority of its disability examiners and further revising its hearings
processes.
Planned Outcome: Reducing long- term disability benefits because people
return to the workplace. In fiscal year 2000, SSA reported that it made
progress in this area and met most of its performance goals. However, SSA?s
measures were mainly output- oriented, and did not directly convey SSA?s
progress toward attaining this outcome. SSA?s fiscal year 2002 strategies in
this area are more results- oriented and include goals and measures that are
more clearly linked to achieving its objectives. However, SSA has not yet
developed performance goals for several indicators, including its key
outcome goal for the number of disabled SSI beneficiaries no longer
receiving cash benefits due to work.
Planned Outcome: Providing timely information to decisionmakers to address
program policy issues such as long- term trust fund solvency. SSA reported
that it made progress in this area and met most of its performance goals in
fiscal year 2000. SSA?s fiscal year 2002 strategies for this key outcome are
also more results- oriented than in prior years. The plan also contains
goals and measures that are more clearly linked to achieving its objectives
and should help SSA better track customer satisfaction with its research
products.
Planned Outcome: Reducing fraud, waste, and error in the SSI program. SSA
reported mixed success in meeting its intended goals for this key outcome in
fiscal year 2000. SSA?s fiscal year 2002 strategies could also be improved
by including additional indicators of its antifraud efforts, such as
tracking the number of civil and monetary penalties levied. Furthermore,
some recent plan revisions may impede SSA?s ability to improve SSI program
integrity- for example, none of the components of a new SSI debt- recovery
indicator measures debt actually collected by SSA in a given year.
SSA?s fiscal year 2000 performance report and fiscal year 2002 plan include
improvements over their prior- year counterparts. For example, the fiscal
year 2000 report used more graphics to present a clear picture of SSA?s
progress, while the fiscal year 2002 plan includes additional clarifying
baseline data, definitions, and data sources useful for tracking
performance. However, SSA?s fiscal year 2000 report lacked data for about 18
percent of its key outcome goals and contained revisions or deletions of
other measures, which affected our ability to assess agency performance.
Page 4 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Finally, SSA?s fiscal year 2000 report did not sufficiently convey the
agency?s progress toward improving data credibility. Our prior work showed
that data credibility issues created vulnerabilities for the performance
measures for nearly all of SSA?s key outcomes. Weaknesses in SSA?s
information system internal controls- which we have previously reported on-
heighten the need for additional attention to this area.
SSA reported making progress in addressing the major management challenges
identified by GAO, which generally encompass the agency?s five key outcomes.
SSA?s current plan includes one goal and several performance indicators to
address the governmentwide high- risk area of strategic human capital
management. Several of these indicators respond to our prior recommendations
that SSA take additional actions to ensure that it has sufficient staff with
the proper skills to address burgeoning future workloads. Many of SSA?s
human capital- related performance measure goals have yet to be developed,
however. SSA reported that its strategies in this area focus on better
aligning how it manages human capital with its newly revised strategic plan
to help meet its longer- term resource and workload challenges, as specified
in its 2010 Service Vision.
For example, SSA?s fiscal year 2002 strategies include leadership training
opportunities to address expected management retirements, an area we have
reported that SSA needed to address. 4 SSA also reported that it is
addressing governmentwide high- risk information security issues by
developing strategies such as improving security awareness and training
efforts, deploying new security technology, introducing new performance
measures for information systems security to be reported to monitoring
authorities, and taking actions to ensure that its assets are protected from
physical and cyber threats. 5 However, information infrastructure weaknesses
persist, and SSA?s fiscal year 2002 plan does not include specific goals,
indicators, or performance measures related to this risk. SSA?s performance
report discussed progress in resolving the management challenges we
identified as facing the agency: playing an active research and policy
development role, improving the disability determination process and
returning people to work, sustaining management and oversight of the high-
risk SSI program, and better positioning itself for
4 Major Management Challenges and Program Risks: Social Security
Administration
(GAO- 01- 261, Jan. 2001). 5 In 1999, we named ?strengthening controls to
protect SSA information? as a SSA- specific challenge. To eliminate
redundancy, we have included SSA?s activities in regard to this issue under
our governmentwide information security management challenge.
Page 5 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
future service delivery challenges. SSA?s fiscal year 2002 plan also
includes specific goals, strategies, and measures for addressing these
challenges. However, for some challenges- disability determinations, return-
to- work, and SSI program management and oversight- additional actions and
goals are needed.
We make recommendations in this report that SSA take steps to ensure that
essential data and other key information are included in future performance
reports and plans, as well as develop specific goals and measures to address
continuing information security weaknesses. In commenting on our draft
report, SSA generally agreed with our conclusions and recommendations. The
agency also provided technical comments, which we incorporated where
appropriate. SSA?s comments are printed in appendix II.
GPRA is intended to shift the focus of government decision- making,
management, and accountability from activities and processes to the results
and outcomes achieved by federal programs. New and valuable information on
the plans, goals, and strategies of federal agencies has been provided since
federal agencies began implementing GPRA. Under GPRA, annual performance
plans are to clearly inform the Congress and the public of (1) the annual
performance goals for agencies? major programs and activities, (2) the
measures that will be used to gauge performance, (3) the strategies and
resources required to achieve the performance goals, and (4) the procedures
that will be used to verify and validate performance information. These
annual plans, issued soon after transmittal of the president?s budget,
provide a direct linkage between an agency?s longer- term goals and mission
and day- to- day activities. 6 Annual performance reports are to
subsequently report on the degree to which performance goals were met. The
issuance of the agencies? performance reports, which were due by March 31,
represents a new and potentially more substantive phase in the
implementation of GPRA- the opportunity to assess federal agencies? actual
performance for the prior fiscal year and to consider what steps are needed
to improve performance and reduce costs in the future. 7
6 The fiscal year 2002 performance plan is the fourth of these annual plans
under GPRA. 7 The fiscal year 2000 performance report is the second of these
annual reports under GPRA. Background
Page 6 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
SSA oversees three major programs that provide benefits to more than 50
million recipients: OASI, DI, and SSI. SSA?s fiscal year 1999 expenditures
of more than $400 billion constituted over one- fifth of all federal
disbursements. This amount is expected to grow over the coming years as the
baby- boom generation ages and the life expectancy of Americans continues to
lengthen. SSA?s disability caseloads are also expected to grow rapidly and
become increasingly complex in the future as baby boomers reach their peak
disability- prone years. For example, by 2010 SSA expects demand for DI
services to increase by 54 percent over 1999 levels. However, even with its
considerable workload, SSA is viewed as a leader in federal service
delivery. Additionally, the agency produces timely and accurate financial
statements and is considered a leader among government agencies for its
accountability reporting.
We have reported that SSA continues to face substantial management
challenges as it administers its programs. These include playing an active
research, evaluation, and policy development role; improving its disability
determination process and returning people to work; sustaining management
and oversight of long- standing, high- risk SSI issues; better positioning
itself for future service delivery challenges; and further strengthening its
controls to protect SSA information. 8 For example, we reported that SSA?s
disability determination process has long suffered from a set of serious
problems that make it time- consuming, expensive, and complex. Ongoing
challenges to making timely and accurate determinations can result in
beneficiaries waiting more than 1 year for final disability decisions.
Continuing inefficiencies also result in very few beneficiaries leaving the
rolls to return to work. Also, we designated the SSI program high- risk in
1997 because of its susceptibility to waste, fraud, abuse, and
mismanagement. The SSI program continues to face many longstanding problems,
such as program abuses and mismanagement, substantial overpayments, and
SSA?s inability to recover outstanding debt. (See app. I for a detailed
discussion of each of the management challenges.)
8 Major Management Challenges and Program Risks: Social Security
Administration
(GAO- 01- 261, Jan. 2001).
Page 7 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
This section discusses our analysis of SSA?s performance in achieving
selected key outcomes and the strategies the agency has in place,
particularly in terms of human capital and information technology, for
accomplishing these outcomes. 9 We have also provided information drawn from
our prior work on the extent to which the agency provided assurance that the
performance information it is reporting is credible.
Among federal agencies, SSA is considered a leader in service delivery. The
agency considers this one of its top priorities, and its current performance
report and plan generally convey SSA?s progress and strategies for providing
accurate, timely, and useful services to the public. However, our review of
SSA?s performance report and plan identified continuing weaknesses that
could hamper its ability to provide high- level service delivery as future
workloads increase. This was especially problematic in regard to SSA?s goals
and measures for its 800- number services.
SSA?s fiscal year 2000 annual performance report showed that it met
approximately half of its 34 original and revised goals related to the key
agency outcome of providing timely, accurate, and useful information and
services to the public. For example, SSA met its original goals for key
indicators such as the percentage of earnings posted correctly and the
percentage of initial SSI aged claims processed within 14 days of filing.
But SSA also met several goals by lowering target performance, including the
volume of 800- number calls processed, and often cited insufficient
budgetary resources as the reason for revising this and other targets. In
addressing its unmet goals, SSA often cited methodological constraints in
measuring performance through its customer surveys, as well as higher than
expected workloads, as reasons for not attaining them. For seven other
goals, including a key measure of the accuracy of services obtained via its
800- number, data were not yet available for us to assess performance. SSA
noted that these data were received late and were not ready for inclusion in
its fiscal year 2000 report.
9 Key elements of modern human capital management include strategic human
capital planning and organizational alignment; leadership continuity and
succession planning; acquiring and developing staff whose number, skills,
and deployment meet agency needs; and creating results- oriented
organizational cultures. Assessment of SSA?s
Progress and Strategies in Accomplishing Selected Key Outcomes
Timely, Accurate, and Useful Information and Services to the Public
Page 8 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
SSA?s fiscal year 2002 plan increased the number of strategic objectives and
indicators related to this key outcome. For example, SSA added a strategic
objective to improve or maintain the accuracy, timeliness, and efficiency of
services it provides to benefit recipients. To accomplish its objectives,
SSA?s strategies include increasing the number of interactive automated
services for simple business transactions that do not require interaction
with an SSA representative, as well as training customer service staff on
ways to improve accuracy on a number of error- prone issues. However, SSA
changed and deleted several customer service indicators essential to
documenting progress and performance in this area. For example, SSA merged
two accuracy indicators without sufficient justification- the dollar
accuracy of OASI payment outlays and the dollar accuracy of DI payments
outlays. Aggregating and reporting on these separate and distinct programs
in a single indicator may affect SSA?s ability to sufficiently monitor and
manage payment accuracy and obscure SSA?s actual performance in either
program. SSA?s fiscal year 2002 plan does not include an indicator to assess
customer satisfaction with the clarity of the notices it sends to the
public. In prior work and testimony we have stated that SSA?s notices were
difficult to understand, presented information in illogical order, and
required complex analyses to reconstruct how SSA had made adjustments to
benefit payments. Accordingly, we recommended that SSA develop a measure to
hold itself accountable for the quality of its notices. 10
Our current assessment of SSA?s progress and strategies for addressing
weaknesses in the disability determination process showed that significant
challenges remain. We have previously reported that SSA?s complex and costly
disability claims process has been plagued by long- standing weaknesses
resulting in lengthy processing times for claimants, many of whom must wait
more than a year for a final decision. These long waits are due, in part, to
complex and fragmented decision- making processes with many layers of
review.
SSA?s report showed that it revised more than half of its fiscal year 2000
goals for this outcome, and met fewer than half of those, including key
goals for hearings volume and processing times. It also did not meet its
10 Social Security Administration: Longstanding Problems in SSA?s Letters to
the Public Need to Be Fixed (GAO/ HEHS- 00- 179, Sep. 26, 2000) and Social
Security Administration: Many Letters Difficult to Understand (GAO/ T- HEHS-
94- 126, Mar. 22, 1994). Timeliness and Accuracy
of Disability Determinations
Page 9 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
goal for conducting periodic Continuing Disability Reviews (CDR) of a
recipient?s medical condition. Furthermore, SSA did not provide any
explanation as to why this goal was not met. In regard to goals related to
the accuracy of initial and appealed disability decisions, SSA was unable to
report on its performance because data were not available in time for the
fiscal year 2000 report.
SSA?s fiscal year 2002 plan includes several additional performance
indicators and strategies to address concerns raised during our review of
its fiscal year 1999 report and fiscal year 2001 plan. We reported that none
of its performance indicators measured timeliness from the customer?s
perspective- that is, the total time it takes a customer to receive a final
decision, including decisions reached on appeal. SSA revised its strategic
objective to increase the number of disability customers who receive
services and payments on time. The new objective now contains performance
indicators on the percentage of initial disability claims decisions issued
within 120 days (the goal for this indicator is to be developed) and to
implement electronic processing of disability claims by 2005. SSA has also
added an objective to improve the accuracy, timeliness, and efficiency of
its services to customers requesting hearings or appeals, which contains a
performance indicator on the percent of hearings decisions issued within 180
days. Strategies in support of a more efficient disability process include
testing the use of greater decision authority for disability examiners and
implementing a Hearings Process Improvement (HPI) initiative to reduce cycle
times for appealed cases. HPI includes additional training to shorten
learning curves for newly promoted or hired employees. Despite these
improvements, SSA?s fiscal year 2002 plan still does not include an
indicator that measures the entire cycle time from initial determination
through appeal, and thus does not fully assess the agency?s timeliness of
disability determinations from the customer?s perspective. SSA?s fiscal year
2002 plan also does not include a goal for measuring the success of its
efforts to achieve consistency between the initial and appellate levels. SSA
will need to carefully monitor its progress in this difficult area.
Finally, we are concerned that SSA deleted two key output measures that it
had previously included in its performance plans- disability claims pending
and hearings claims pending. Our analysis showed that SSA generally did not
meet its fiscal year targets various times since fiscal year 1997- for
disability claims pending (in 1999 and 1998) and hearings pending (in 2000,
1999, and 1997). The deletion of measures for key pending workloads has
resulted in the loss of performance indicators for assessing SSA?s progress
in meeting its goals for timely disability decisions
Page 10 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
and providing world- class customer service. SSA provided no explanation in
its plan as to why these indicators were deleted.
Our prior reports and testimonies have shown that SSA has had only limited
success in helping recipients with disabilities return to the workforce,
despite numerous technological and medical advances that have made such
transitions possible. 11 While SSA indicates progress has been made in this
area, significant challenges remain.
In fiscal year 2000, SSA reported that it had met nearly all of its original
performance goals in this area. However, these measures were mainly output-
oriented, and did not directly convey SSA?s progress toward meeting the
intended outcome. One key goal in this area- to increase the number of SSI
disabled beneficiaries aged 18 to 64 who are working but still receiving
benefits- was revised downward and was met. For another goal- to increase
the number of DI adult worker beneficiaries who begin a trial work period-
data to allow us to assess SSA?s performance were unavailable. Finally, the
fiscal year 2000 performance report stated that SSA fully met its goal for
developing a measure for DI beneficiaries who return to work. However, SSA?s
fiscal year 2000 report showed that the indicator was developed but specific
numeric goals for evaluating performance were still pending.
In June 2000, we reported that many of SSA?s fiscal year 2001 performance
measures were not sufficiently results- oriented, making it difficult to
track progress. SSA?s fiscal year 2002 performance plan shows that SSA has
begun to incorporate more outcome- oriented performance indicators to
support their efforts in this area. Two new indicators, in particular,
should help SSA gauge progress: the percentage increase in the number of DI
beneficiaries whose benefits are suspended/ terminated due to employment,
and the percentage increase in the number of disabled SSI beneficiaries no
longer receiving cash benefits. However, SSA has not yet set specific
performance targets nor explained when they will be developed. Finally, SSA
has not yet assigned measurable goals for several of its research- oriented
performance indicators, such as the preparation of a research design to
develop techniques for validating medical listings.
11 See reports including SSA Disability: Other Programs May Provide Lessons
for Improving Return- to- Work Efforts (GAO/ T- HEHS- 00- 151, July 13,
2000) and SSA Disability Redesign: Actions Needed to Enhance Future Progress
(GAO/ HEHS- 99- 25, Mar. 12, 1999). Long- Term Disability
Benefits and Return- toWork
Page 11 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Despite its recent actions, SSA faces continued challenges in developing
baseline data to measure progress in the return- to- work area. We are
concerned about SSA?s plans related to this outcome because in prior work we
have noted that SSA?s data systems could not distinguish between
beneficiaries who no longer receive benefits due to medical improvements and
those who lose benefits because they are working. We also remain concerned
that SSA has yet to address our prior recommendation that it develop a
comprehensive return- to- work strategy that focuses on identifying and
enhancing beneficiaries? work capacities. 12 The absence of such a strategy
and accompanying performance plan goals may hinder SSA?s future efforts to
make significant strides in the return- towork area.
In numerous reports and testimonies, we have reported that SSA has not
always been sufficiently active in research that would support policy
decision- making. 13 However, in recent years SSA has taken actions to
strengthen its research and policy development role. SSA?s fiscal year 2000
performance report and fiscal year 2002 performance plan demonstrate good
progress in achieving this outcome.
SSA reported that it met nearly all of its fiscal year 2000 goals to provide
timely information to decision- makers necessary to address program policy
issues such as long- term trust fund solvency. Performance indicators in
this area included preparing numerous studies and analyses to support key
SSA program challenges. SSA?s fiscal year 2002 plan included reasonable
strategies to achieve its goals, including partnering with other federal
agencies, such as the Department of Health and Human Services, to coordinate
program research directed toward mutual populations. To help gauge the
effectiveness of its research activities, SSA?s current plan also includes
indicators related to updating and analyzing newly developed ?barometer?
measures, which indicate how Social Security benefits, in combination with
other related factors, affect the economic well- being of the public. In
accordance with our prior report findings, SSA?s plan also contains revised
customer- oriented indicators to gauge satisfaction with the quality,
accuracy, and timeliness of its research
12 SSA Disability: Return- to- Work Strategies From Other Systems May
Improve Federal Programs (GAO/ HEHS- 96- 133, July 11, 1996), pp. 49- 50. 13
Our work is summarized in Social Security Administration: Effective
Leadership Needed to Meet Daunting Challenges (GAO/ T- OGC- 96- 7, July 25,
1996), pp. 6- 7. Information for
Decisionmakers to Address Program Policy Issues Such as Long- Term Trust
Fund Solvency
Page 12 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
products. However, SSA?s future efforts to analyze policy options and
consider proposals for change may be hampered because it no longer has an
indicator in its fiscal year 2002 plan to maintain a Social Security and SSI
research and policy agenda. (This indicator last appeared in SSA?s fiscal
year 2000 plan and report.) These efforts merit attention given the
increasing number of proposals to reform the Social Security system and the
President?s creation of a Social Security commission to make recommendations
to modernize and restore fiscal soundness to Social Security.
In 1997, we designated the SSI program high risk due to its susceptibility
to fraud, waste, abuse, and mismanagement, and because of SSA?s difficulties
in recovering outstanding SSI debt. 14 Outstanding SSI debt and newly
detected overpayments for fiscal year 1999 totaled more than $3.8 billion.
In recent years, SSA has taken numerous actions in coordination with the
Congress to strengthen SSI program integrity. However, our review of SSA?s
actual and planned performance found that sustained attention is needed to
ensure SSA?s progress toward meeting its SSI program strategic goal.
SSA reported that it met the target goal for over half of its fiscal year
2000 performance indicators to reduce fraud, waste, and error in the SSI
program. SSA increased and met its targets for three performance goals in
this area, and attributed those increases to additional Office of Inspector
General (OIG) resources and higher- than- anticipated returns from
investigative and debt collection activities. SSA?s strategies related to
this key outcome include an initiative to prevent, detect, and resolve SSI
overpayments through improved automation of work processes and targeting the
most error- prone SSI policy areas. SSA also plans to combat fraud through
continued development and enhancement of debt recovery tools. Despite SSA?s
success in several areas, we are concerned that recent revisions to SSA?s
fiscal year 2002 objectives and indicators may negatively affect SSA?s
improvement in its stewardship of the SSI program. For example, none of the
components of a new debt- related indicator measures debt actually
collected. In fiscal year 2001 SSA had included a strategic objective to
increase SSI debt collections by 7 percent annually through 2002. SSA?s
fiscal year 2001 goal was $732.7 million. The newly developed fiscal year
2002 objective states that, through 2005, SSA will
14 High- Risk Series: An Overview (GAO/ HR- 97- 1, Feb. 1997), pp. 68, 70,
101- 102. Fraud, Waste, and Error in
the SSI Program
Page 13 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
maintain a level of outstanding debt that is in a ?repayment agreement,
under appeal, or newly detected.? SSA?s fiscal year 2002 plan states that
the goal for this indicator is to be developed, pending preparation of
baseline data, based on the three categories noted above. We are concerned
that none of the categories involves actual debt collected by SSA in a given
fiscal year. While SSA?s fiscal year 2002 plan acknowledged that its
stewardship responsibilities require that it recover as much debt as
possible, it did not explain how the new indicator would help SSA better
monitor its debt collection activities. Our prior work has shown that a
significant amount of overpayments detected by SSA will likely never be
recovered. While SSA?s proposed measures have some value, eliminating the
goal of increasing annual SSI debt collections may be imprudent. This is
particularly true since SSA- in accordance with our prior recommendations-
pursued and obtained authority under the Foster Care Independence Act of
1999 to use additional debt collection tools to recover SSI overpayments. 15
Since SSA has claimed that improved overpayment recoveries would result from
the act, it should maintain a debt collection performance measure to gauge
its progress in this area.
Also in regard to this key outcome, SSA?s fiscal year 2002 plan shows that
the agency deleted without explanation a strategic objective ?To position
the Agency?s resources and processes to meet emerging workloads.? (In fiscal
year 2000 SSA reported that the goals and indicators for this objective were
to be developed, but no goals and indicators were listed in its fiscal year
2001 plan.) Finally, SSA also has not implemented the plan improvements that
we proposed last year, such as more clearly linking its goals and measures
for CDRs, investigations, and convictions to the SSI program. Nor has it
developed additional indicators of its antifraud efforts, such as tracking
the number of civil and monetary penalties levied. If implemented, these
improvements should further facilitate SSA?s efforts to make progress in
improving SSI program integrity. However, the current plan makes no
reference to SSA?s activities in these areas.
15 Supplemental Security Income: Action Needed on Long- Standing Problems
Affecting Program Integrity (GAO/ HEHS- 98- 158, Sep. 14, 1998), p. 31.
Page 14 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
For the selected five key outcomes, this section describes major
improvements or remaining weaknesses in SSA?s fiscal year 2000 performance
report in comparison with its fiscal year 1999 report, and fiscal year 2002
performance plan in comparison with its fiscal year 2001 plan. It also
discusses the degree to which the agency?s fiscal year 2000 report and
fiscal year 2002 plan address concerns and recommendations by the Congress,
GAO, SSA?s OIG, and others.
Overall, SSA?s fiscal year 2000 performance report contains several
improvements over the 1999 report, but some weaknesses remain. Improvements
are primarily related to a clearer presentation of goal attainment for its
indicators. For example, the fiscal year 2000 report provides additional
graphics, headings, and markers to show the reader whether targets were met,
not met, or exceeded. However, future performance reports would be more
useful in tracking SSA?s progress on key outcomes if trend data also
included the prior years? performance goals, instead of just their actual
performance. Also, SSA?s fiscal year 2000 report discussed our prior reviews
of its performance plans and report, a feature absent from its fiscal year
1999 report. 16 However, there was no reference to any specific actions
taken by SSA in response to the identified problems and deficiencies. SSA?s
fiscal year 2000 and fiscal year 1999 report were comparable in their
discussion of actions taken by SSA?s OIG in assuring the reliability of
SSA?s measures and data systems. This section in the fiscal year 2000 report
identified several deficiencies and outlined specific actions taken by SSA
to address two OIG- identified deficiencies, including measuring the
accuracy of Social Security card processing and the timeliness of earnings
posted to beneficiaries? records.
Despite these improvements, we identified weaknesses in SSA?s fiscal year
2000 performance report which cut across most of its five key outcomes
16 See Observations on the Social Security Administration?s Fiscal Year 2000
Performance Plan (GAO/ HEHS- 99- 162R, July 30, 1999) and Observations on
the Social Security Administration?s Fiscal Year 1999 Performance Report and
Fiscal Year 2001 Performance Plan (GAO/ HEHS- 00- 126R, June 30, 2000).
Comparison of SSA?s
Fiscal Year 2000 Performance Report and Fiscal Year 2002 Performance Plan
With the Prior Year Report and Plan for Selected Key Outcomes Comparison of
Performance Reports for Fiscal Years 1999 and 2000
Page 15 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
and include the practice of revising some goals, 17 the need to continue
efforts to improve data credibility, and the unavailability of data for
certain goals that may hinder SSA?s ability to manage its performance.
Regarding the issue of data unavailability, in some instances we were unable
to determine- without revisiting SSA?s prior year?s plan and report- whether
SSA was regularly meeting its intended goals. 18 This was especially true
for indicators for which performance data were not available at the time of
our prior years? reviews. To illustrate, our current review found that for a
key indicator- accuracy of initial disability determinations- SSA has
reported performance data as being unavailable at the time of publication
for the last 2 years. Thus, our annual reviews and reports have omitted a
discussion of SSA?s progress toward attainment of this goal. However, by
examining performance data later included in SSA?s annual performance plans,
we found that SSA did not meet its performance target for this goal in
fiscal years 1998 and 1999. This omission had the effect of disguising SSA?s
actual performance over the last 2 years and may hinder SSA?s attempts to
assess future progress toward attaining key outcomes. Also, we noted in our
review of SSA?s 1999 report that SSA?s OIG noted that SSA has not verified
the reliability of most of its performance data. We also reported that SSA
did not identify the sources of performance data and generally did not
discuss its reliability and shortcomings. While SSA?s fiscal year 2000
report included references to sources of performance data, it did not
discuss its methodologies for verifying performance data or any shortcomings
in these data, which may hinder SSA?s ability to measure progress toward the
five key outcomes.
Overall, SSA?s fiscal year 2001 and fiscal year 2002 plans are comparable in
their presentation of goals and objectives related to the five key outcomes.
Both years? plans sufficiently discussed SSA?s budgetary resources related
to the strategic goals, external environmental factors influencing SSA?s
strategies, the means and strategies related to achieving performance
objectives, and definitions of goal indicators. In fiscal year 2002, SSA
also added baseline data, definitions, and data sources for its major
budgeted
17 SSA revised 17 (about 25 percent) of the performance goals in its fiscal
year 2000 performance report related to the five key outcomes; these
revisions generally made performance targets easier to meet.
18 SSA was unable to provide data for 12 (about 18 percent) of the
performance goals in its fiscal year 2000 performance report related to the
five key outcomes. Comparison of
Performance Plans for Fiscal Years 2001 and 2002
Page 16 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
workloads, such as Social Security number (SSN) requests processed. This
should help provide a basis for better tracking SSA?s progress in processing
these workloads. SSA also added an appendix that illustrates planned program
evaluations for its strategic goals, the lack of which we cited as a
deficiency in our prior work. Also in fiscal year 2002, SSA added another
appendix that depicts the fiscal year 1997 and fiscal year 2000 strategic
plan objectives for each of its strategic goals. SSA officials stated that
this information is intended to convey the evolution of its strategic
objectives since 1997, the year of its first strategic plan. However, SSA
could improve the usefulness of this information for tracking progress if it
provided a full record of the revisions it made to its strategic objectives
in the years between 1997 and 2000. Currently, the changes between 1997 and
2000 are not depicted and it is difficult to determine the relationship
between SSA?s original and fiscal year 2000 objectives.
Regarding specific key outcomes, SSA?s enhancements over the prior year?s
plan largely pertained to the disability determination and return- towork
key outcomes. For example, as we noted previously, SSA revised its strategic
objectives related to increasing the number of disability customers who
receive services and payments on time, and added a new objective and
supporting indicators to improve the accuracy, timeliness, and efficiency of
its services to customers. Regarding fraud, waste, and error in the SSI
program, in 2000 we reported that the agency?s overpayment goals combine new
and old debt and underpayments, which may allow above- average performance
in one area to mask lagging performance in the other area. SSA?s fiscal year
2002 plan continued use of these same measures.
GAO has identified two governmentwide high- risk areas: strategic human
capital management and information security. Regarding human capital issues
at SSA, we have reported that demand for SSA?s services will grow rapidly as
the baby- boom generation ages and enters disability- prone years. At the
same time, SSA will be faced with significant workforce challenges as more
than half of its 63,000 employees become eligible for retirement. We have
noted that this convergence of events will require SSA to plan more
strategically and make prudent technology and workforce investments to
ensure a sufficient level of staff with the proper skills in the SSA?s
Efforts to Address Its
Major Management Challenges Identified by GAO
Page 17 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
future. We have also recommended that SSA develop a service delivery plan to
guide its efforts that incorporates the key elements noted above. 19
In the area of information security, we have reported that SSA must address
weaknesses in its information systems internal controls to ensure that
automated agency data are both reliable and credible. Specifically, we
reported that such weaknesses have exposed SSA and its computer systems to
external and internal intrusion, thus subjecting automated data to potential
unauthorized access and modification. 20
Our review showed that SSA?s performance plan has a strategic goal and
measures related to human capital management. It also discusses specific
recruitment, training, and staff development strategies SSA intends to
pursue to acquire the workforce it needs for the future. SSA reported that
its strategies in this area focus on better aligning how it manages human
capital with its newly revised strategic plan to help meet its longer- term
resource and workload challenges, as specified in its 2010 Service Vision.
For example, SSA?s initiatives include conducting leadership training and
career development programs that are based on competencies needed for
employees to perform well and developing an integrated automated system to
support its human resource workloads. However, many of SSA?s performance
goals in this area have yet to be developed, including specific goals and
measures for implementing its workforce transition plan to guide future
human capital decisions. With respect to information security, SSA?s
performance plan does not have specific goals and measures related to this
challenge, but discusses its current processes and strategies for
controlling and protecting information. These include improving security
awareness and training efforts, deploying new security technology,
introducing new performance measures for information systems security to be
reported to monitoring authorities, and taking actions to ensure that its
assets are protected from physical and cyber threats. However, information
infrastructure weaknesses persist, and SSA?s fiscal year 2002 plan does not
include specific goals, indicators, or performance measures related to this
risk.
19 SSA Customer Service: Broad Service Delivery Plan Needed to Address
Future Challenges (GAO/ T- HEHS/ AIMD- 00- 75, Feb. 10, 2000), p. 1. 20
Major Management Challenges and Program Risks: Social Security
Administration
(GAO- 01- 261, Jan. 2001).
Page 18 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
In addition to these governmentwide challenges, GAO has identified five
major management challenges facing SSA that generally encompass the five key
outcomes discussed in this report: playing an active research and policy
development role, improving the disability determination process and
returning people to work, sustaining management and oversight of the high-
risk SSI program, better positioning itself for future service delivery
challenges, and further strengthening controls to protect SSA information.
SSA?s performance report conveyed the agency?s progress in meeting four of
these challenges, but did not include specific goals and measures related to
strengthening controls to protect its information. However, SSA discussed
strategies related to this challenge. Additionally, for some challenges-
disability determinations, return- to- work, and SSI program management and
oversight- further actions and goals are needed. Appendix I provides
detailed information on how SSA addressed its management challenges as well
as those high- risk areas identified by SSA?s OIG.
SSA faces many challenges, especially in regard to ensuring a sufficient and
skilled future workforce, improving SSI program integrity, and addressing
longstanding problems with its disability programs. The agency?s strategic
planning framework, which includes its recent annual performance reports and
plans, shows that SSA has generally taken actions to address its most
pressing challenges. However, weaknesses remain and future strains on SSA?s
programs, driven to a great extent by the aging of the American population,
require SSA to continuously improve its planned and actual performance to
ensure progress toward achieving its key outcomes.
Specifically, we found that additional actions are needed to ensure that
SSA?s data systems and internal reporting structures support the provision
of program performance data in time for inclusion in its performance
reports. In fiscal year 2000, SSA was unable to provide data for
approximately 18 percent of its performance goals related to the five key
outcomes, which diminished our ability to gauge progress in several areas.
SSA also has not sufficiently addressed our existing concerns, as well as
the OIG?s, regarding the security and credibility of its performance data.
The absence of specific goals and measures to address these weaknesses in
SSA?s systems may compromise the future integrity of its performance data.
We are also concerned that SSA?s actions to revise a number of key
performance goals and measures- sometimes with little or no justification-
may impede its ultimate goal of improving program performance. We are
particularly concerned about the efficacy of SSA?s Conclusions
Page 19 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
newly revised measures for DI and OASI program payment accuracy and SSI debt
collections. Finally, SSA?s deletion of key performance goals and measures-
such as disability claims and hearings pending- without a sufficient
rationale for doing so may further affect performance. We view these goals
as essential to assessing SSA?s success in managing its disability
determination process.
To further improve SSA?s future performance reports and plans, we recommend
that the Commissioner of Social Security take the following actions:
Ensure that all key performance data necessary to measure SSA?s progress
toward achieving its strategic goals are included in its annual performance
report.
Develop specific goals and measures to address information security and
remaining information systems weaknesses that may affect the reliability and
credibility of SSA?s performance data.
Include in SSA?s performance plan an explanation of the agency?s rationale
for revising and/ or deleting prior performance goals and measures, as well
as a discussion of how new goals or measures will better support SSA?s
strategic goals.
On June 8, 2001, we obtained written comments on our draft report from the
Acting Commissioner of Social Security. The Acting Commissioner generally
agreed with our assessment of SSA?s progress in addressing its key outcomes
and major management challenges, as well as our recommendations for further
improving future performance reports and plans. SSA also noted that, in
response to our findings, specific measures for disability claims pending
and hearings pending would be included in future performance plans. SSA?s
comments are printed in appendix II.
SSA also provided technical comments on our draft report. SSA disagreed with
our assertion that the use of a combined OASI/ DI nonmedical payment
accuracy measure would hinder its ability to monitor and manage performance
for both programs. We continue to believe that using a combined payment
accuracy measure for these separate and distinct programs could ultimately
mask problems in the DI program if they were offset by increased
efficiencies in the much larger OASI program. SSA also took issue with our
characterization of its lack of a comprehensive return- to- work strategy
for beneficiaries with disabilities. We recognize Recommendations for
Executive Action Agency Comments and Our Response
Page 20 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
SSA?s activities in this area, such as implementing the Ticket to Work and
Work Incentives Improvement Act of 1999. However, fundamental weaknesses
remain in SSA?s approach, including an eligibility assessment process that
encourages applicants to focus on their incapacities, and return- to- work
assistance that occurs only after an often- lengthy eligibility process. 21
We incorporated SSA?s other technical comments where appropriate.
Our evaluation was generally based on the requirements of GPRA, the Reports
Consolidation Act of 2000, guidance to agencies from the Office of
Management and Budget (OMB) for developing performance plans and reports
(OMB Circular A- 11, Part 2), previous reports and evaluations by us and
others, our knowledge of SSA?s operations and programs, GAO?s identification
of best practices concerning performance planning and reporting, and our
observations on SSA?s other GPRA- related efforts. We also discussed our
review with officials from SSA?s Office of Strategic Management and with its
Office of Inspector General. The agency outcomes that were used as the basis
for our review were identified by the Ranking Minority Member of the Senate
Committee on Governmental Affairs as important mission areas for the agency
and generally reflect the outcomes for all of SSA?s programs or activities.
The major management challenges confronting SSA, including the
governmentwide high- risk areas of strategic human capital management and
information security, were identified by GAO in our January 2001 performance
and accountability series and high- risk update, and were identified by
SSA?s Office of Inspector General in December 2000. We did not independently
verify the information contained in the performance report and plan,
although we did draw from other GAO work in assessing the validity,
reliability, and timeliness of SSA?s performance data. We conducted our
review from April 2000 through June 2000 in accordance with generally
accepted government auditing standards.
As arranged with your office, unless you publicly announce its contents
earlier, we plan no further distribution of this report until 30 days after
the date of this letter. At that time, we will send copies to appropriate
congressional committees; the Acting Commissioner of Social Security;
21 SSA Disability: Other Programs May Provide Lessons for Improving Return-
to- Work Efforts (GAO- 01- 153, Jan. 12, 2001). Scope and
Methodology
Page 21 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
and the Director, Office of Management and Budget. Copies will also be made
available to others upon request.
If you or your staff has any questions, please call me at (202) 512- 7215.
Key contributors to this report are listed in appendix III.
Sincerely yours, Barbara D. Bovbjerg Director, Education, Workforce, and
Income Security Issues
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Page 22 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
The following table identifies the major management challenges confronting
the Social Security Administration (SSA), which include the governmentwide
high- risk areas of strategic human capital management and information
security. The first column describes the challenges that we and/ or SSA?s
Office of Inspector General (OIG) have identified. The second column
discusses SSA?s progress in resolving its challenges as discussed in its
fiscal year 2000 performance report. The third column discusses the extent
to which SSA?s fiscal year 2002 performance plan includes performance goals
and measures to address these challenges. We found that SSA?s performance
report discussed the agency?s progress in resolving all of its challenges,
with the exception of identity theft and representative payees. Of the 11
major management challenges identified by both us and the OIG, SSA?s
performance plan had (1) goals and measures that were directly related to
five of the challenges; (2) goals and measures that were indirectly
applicable to two of the challenges, and (3) no goals and measures related
to four of the challenges, but discussed strategies to address them.
Table 1: Major Management Challenges Major management challenge
Progress in resolving major management challenge as discussed in the fiscal
year 2000 performance report Applicable goals and measures in the
fiscal year 2002 performance plan GAO- designated governmentwide high risk
Strategic Human Capital Management: GAO has identified shortcomings at
multiple agencies involving key elements of modern strategic human capital
management, including strategic human capital planning and organizational
alignment; leadership continuity and succession planning; acquiring and
developing staffs whose size, skills, and deployment meet agency needs; and
creating results- oriented organizational cultures.
SSA faces human capital management challenges due to an increasing demand
for services, the imminent retirement of a large portion of its workforce,
changing customer expectations, and mixed success in past technology
investments. These conditions challenge SSA?s ability to meet service
delivery demands, such as
SSA?s progress related to the strategic human capital management challenge
is presented under its strategic goal ?to be an employer that values and
invests in each employee.? SSA reported that the focus of this goal is to
ensure that SSA continues to have the highly skilled, high- performing, and
motivated workforce that is critical to the achievement of its mission.
SSA?s human capital strategic goal contained strategic objectives, which
addressed (1) providing workforce tools and training, such as access to
interactive video training and management development programs; (2) creating
a physical environment that promotes the health and well- being of
employees; (3) promoting an agency culture that successfully incorporates
SSA?s values; and (4) creating a skilled workforce to serve SSA?s diverse
customers in the 21st century.
Of the 16 performance goals that SSA used to measure its fiscal year 2000
performance in this area, 10 were met, 4 were not, and data were
SSA?s 2002 performance plan contains revisions to several of its human
capital strategic objectives, performance indicators, and goals.
For example, SSA revised one of its workforce- related strategic objectives
to specifically address the need ?to recruit, develop, and retain a well-
qualified and satisfied workforce to perform effectively in a changing
future environment.? In this revision, SSA acknowledged a ?retirement wave?
that will result in more than 3,000 employees per year leaving SSA between
2006 and 2012 and the growth in workloads attributable to aging baby
boomers. Two of the three indicators listed under this objective have goals
that are yet to be developed; SSA plans to develop initial baseline
information to set these goals. Under the ?valued employees? strategic goal,
SSA has not yet developed fiscal year 2002 goals for 5 of its 10 performance
indicators. The fiscal year 2002 plan also contains
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Page 23 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Major management challenge Progress in resolving major management
challenge as discussed in the fiscal year 2000 performance report Applicable
goals and measures in the
fiscal year 2002 performance plan
faster and more accurate benefit claims determinations and an increased
emphasis on returning the disabled to work. The aging of the baby- boom
generation has further heightened this challenge. In prior work we have
recommended that SSA develop a more detailed service delivery plan that
would provide a blueprint for assessing a proper staff and skill mix for
operating in the future.
not available for 2. SSA did not meet a key goal to implement competency-
based models in the recruitment and training areas.
information on SSA?s program evaluations and key initiatives in support of
its ?values
and invests in each employee? strategic goal. For example, in 2002 SSA
estimates it will complete program evaluation studies on its organizational
culture and retirement/ attrition patterns. Key SSA initiatives include
developing a workforce transition plan, conducting leadership training and
career development programs, and developing an integrated human resources
system to support various human capital- related strategic objectives. The
plan also contains a table that shows its ?values
and invests in each employee? strategic goal supporting all three of SSA?s
major programs- Old Age and Survivor Insurance (OASI), Disability Insurance
(DI), and Supplemental Security Income (SSI).
GAO- designated governmentwide high risk
Information Security: Our January 2001 high- risk update noted that
agencies? and governmentwide efforts to strengthen information security have
gained momentum and expanded. Nevertheless, recent audits continue to show
that federal computer systems are riddled with weaknesses that make them
highly vulnerable to computerbased attacks and place a broad range of
critical operations at risk of fraud, misuse, and disruption.
SSA needs to further strengthen its controls to protect its information.
Weaknesses remaining in SSA?s information systems? internal controls affect
data reliability and credibility. SSA?s systems environment remains
threatened by security and integrity exposures affecting key elements of its
systems and networks. These exposures occurred due to continuing weaknesses
in several components of SSA?s overall information protection control
structure. These weaknesses have exposed SSA and its computer systems to
external and internal intrusion, thus subjecting automated
SSA?s fiscal year 2000 report did not contain any specific performance
indicators and goals related to information security. Nonetheless,
references to information security were included in sections of SSA?s
performance report.
While SSA has made progress in addressing information protection issues
raised in prior years, weaknesses in its security infrastructure persist.
For example, PricewaterhouseCoopers? (PwC) fiscal year 2000 report on SSA?s
information systems noted that SSA made significant progress to correct a
fiscal year 1999 reportable condition that ?SSA needs to complete and fully
test its plan for maintaining continuity of operations.? However, PwC also
noted that weaknesses remain in SSA?s systems and recommended that SSA
further strengthen its agency- wide security framework. Until this is
corrected, a weakened or incomplete information protection control structure
will continue to impair SSA?s ability to mitigate the risk of unauthorized
access, modification, or disclosure of sensitive SSA information. Areas
where weaknesses remained included (1) controls designed to limit or detect
access to computer programs, data, and other computing resources at
nonheadquarters sites; (2) policies and rules governing the operation of
devices that control external access to the SSA network; and (3) the
technical configuration of a contractor- controlled area of SSA?s network.
SSA?s fiscal year 2002 plan does not contain any specific goals, objectives,
and performance indicators directly related to information security. SSA?s
discussion of information security issues is primarily included in the
management challenge section of SSA?s performance plan.
SSA?s fiscal year 2002 plan states that SSA remains committed to addressing
security and integrity issues with a goal to further improve its overall
information protection control structure, and discusses several activities
in this area. These include deploying new security technology, integrating
security into the business process, and introducing new performance measures
for information systems security to be reported to monitoring authorities.
Further, the agency has initiated several steps to improve security
awareness and training efforts. SSA has also undertaken an initiative
intended to ensure its assets are protected from physical and cyber threats.
SSA?s plan discusses the importance of investing in new technology-
including online electronic services- to meet customer expectations, growing
workloads, and its long- range service vision. SSA?s plan also includes
performance indicators and goals
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Page 24 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Major management challenge Progress in resolving major management
challenge as discussed in the fiscal year 2000 performance report Applicable
goals and measures in the
fiscal year 2002 performance plan
data to potential unauthorized access and modification.
(SSA?s OIG also identified this as a management challenge under its
?Critical Information Infrastructure? and ?Systems Security and Controls?
designations.)
for increased on- line services. Our work has shown that SSA has been
cautious in pursuing its on- line initiatives, largely because of privacy
and security concerns. Because these services will potentially involve
exchanging data supplied by both SSA and the customer, it is extremely
important for the agency to ensure that its on- line applications are secure
and to protect the privacy of the public.
GAO- designated major management challenge
Play an Active Research, Evaluation, and Policy Development Role: As the
nation?s expert on Social Security issues, SSA is uniquely positioned to
assess the programmatic impacts of economic and demographic trends and
identify areas where policy changes are needed to ensure that recipients?
needs are met efficiently and cost effectively. However, we have testified
and reported that SSA has not always been sufficiently active in using its
research, evaluation, and policy components to identify areas where
legislative or other changes are needed and to assist policymakers in
developing options for change. Thus, SSA has missed opportunities to provide
information to the Congress and others essential to addressing crucial
policy issues.
SSA?s progress related to this challenge is presented under its strategic
goal, ?to promote valued, strong and responsive Social Security programs and
conduct effective policy development, research, and program evaluation.?
This goal contains strategic objectives such as providing information for
decisionmakers and others on Social Security and SSI through objective and
responsive research, evaluation, and policy development.
SSA reported that it met nearly all of its fiscal year 2000 goals for the
key outcome of providing timely information to decisionmakers necessary to
address program policy issues such as longterm trust fund solvency.
See our discussion in this report under the key outcome to provide timely
information for decisionmakers to address program policy changes for our
assessment of applicable SSA goals and measures.
SSA?s plans to address this challenge are presented under the strategic goal
?to
promote valued, strong and responsive Social Security programs and conduct
effective policy development, research, and program evaluation.? Overall,
SSA?s actions should help to enhance its ability to conduct timely research,
to provide information to decisionmakers, and to develop options for
legislative change.
Also, the ?management challenges? section of SSA?s 2002 plan states that it
plans to play a critical, active role in the Social Security reform policy
debate by providing information about overall program characteristics and
the implications of proposed changes. SSA listed planned outreach
activities, such as holding congressional briefings and conducting analyses
of Social Security reform proposals.
GAO- and IG- designated major management challenge
Improve SSA?s Disability Determination Process and Return People to Work:
Our prior work has shown that SSA?s disability determination process has
long suffered from a set of serious problems. The process is timeconsuming,
expensive, fragmented, and complex. Ongoing weakness in making timely and
accurate determinations result in
SSA?s progress related to this challenge is presented under its customer
service, policy research, and program management strategic goals.
Overall, SSA continued to have difficulties in its disability determination
process in fiscal year 2000. SSA reported that it met fewer than half of its
10 performance goals related to making disability determinations more timely
and accurate. Its report showed that data were
See our discussion in this report under the key outcomes pertaining to
disability determinations and return- to- work for our assessment of
applicable SSA goals and measures.
SSA?s plans to address this challenge are included under its customer
service, policy research, and program management strategic goals. For 2002,
SSA revised its strategic objective to increase the number of
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Page 25 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Major management challenge Progress in resolving major management
challenge as discussed in the fiscal year 2000 performance report Applicable
goals and measures in the
fiscal year 2002 performance plan
beneficiaries often waiting more than 1 year for final disability decisions.
Continued inefficiency results in very few beneficiaries leaving the rolls
to return to work. The costs of administering the DI and SSI programs
reflect the demanding nature of these processes. In fiscal year 1999, SSA
spent almost $4. 1 billion or 59 percent of its administrative budget on
these programs, while beneficiaries of these programs comprise less than 20
percent of SSA?s total number of beneficiaries. We have also reported on
SSA?s longstanding difficulties in providing accurate and consistent
decisions about a claimant?s eligibility for disability benefits.
(SSA?s OIG refers to this challenge under its Disability Redesign
designation.)
unavailable for two indicators the accuracy of Disability Determination
Service and Office of Hearings and Appeals decisions. SSA also did not
provide a reason for falling short of its goal for Continuing Disability
Reviews processed.
In fiscal year 2000, SSA improved its performance for the key outcome to
reduce longterm disability benefits because people return to the workplace.
SSA reported that it met nearly all of its original goals in this area.
However, most of these goals were output- oriented and did not directly
support the key outcome.
disability customers who receive timely services and payments.
However, SSA?s 2002 plan addresses several- but not all- of the disability
determination measurement weaknesses we identified in its past plans. The
extent of SSA?s progress will depend on its ability to successfully
implement supporting technology, which has been challenging for SSA in the
past. SSA?s performance indicators include installation of software and
infrastructure for electronic processing of disability claims. The goals for
these indicators generally are not measurable, however. Despite these
improvements, SSA?s plan still lacks an overall measure of timeliness of the
entire disability determination process- which does not fully assess
timeliness from the customer?s perspective.
Regarding the return- to- work area, SSA still has progress to make. SSA?s
plan contains two new indicators which should help SSA measure its long-
term success in reducing benefits because people return to work: (1) the
percent increase in the number of DI beneficiaries whose benefits are
suspended/ terminated due to substantial gainful activity, and (2) the
percent increase in the number of SSI disabled beneficiaries who no longer
receive cash benefits due to work. SSA?s plan did not contain performance
targets or explain the lack of targets for these indicators.
GAO- and IG- designated major management challenge
Sustain Management and Oversight of Long- Standing, High- Risk SSI Issues:
We designated the SSI program high- risk in 1997 due to its susceptibility
to waste, fraud, abuse, and mismanagement. The SSI program continues to face
many long- standing problems, such as program abuses and mismanagement,
substantial overpayments, and SSA?s inability to recover outstanding debt.
(SSA OIG?s ?Fraud Risk? SSA?s progress related to this challenge is
addressed under its strategic goal to make ?SSA
program management the best- in- business, with zero tolerance for fraud,
waste, and abuse.?
SSA reported that it met its target goals for over half of its indicators in
this area in fiscal year 2000. SSA increased and met its targets for three
of four goals, and attributed its increased production to additional OIG
resources and higher- than- anticipated return on investigative and debt
collection activities.
SSA?s fiscal year 2000 performance report is See our discussion in this
report under the
key outcome to reduce fraud, waste and error in the SSI program for our
assessment of applicable SSA goals and measures.
SSA?s plans in this area are included under its strategic goal ?to ensure
the integrity of Social Security programs, with zero tolerance for fraud and
abuse.?
SSA?s plan reaffirms its commitment to improve SSI program integrity and
highlights its key goals related to improving SSI management. However, SSA?s
2002 plan
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Page 26 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Major management challenge Progress in resolving major management
challenge as discussed in the fiscal year 2000 performance report Applicable
goals and measures in the
fiscal year 2002 performance plan
designation addresses this issue.) incorporated in its accountability report
for that year. In the latter, SSA highlights management improvement actions
that SSA plans to take to improve its oversight and stewardship of the SSI
program. SSA also stated that it implemented actions to maintain its focus
on improving the accuracy of the SSI program, such as training initiatives
and the preparation of new procedures to help strengthen SSI program
management.
also deleted without explanation a strategic objective to position the
agency?s resources and processes to meet emerging workloads.
GAO- and IG- designated major management challenge
Better Position SSA for Future Service Delivery Challenges: SSA faces
significant challenges that could hamper its ability to deliver high- level
service over the next decade and beyond. SSA expects to experience a
significant increase in the demand for services as the baby- boom generation
ages. In addition, the imminent retirement of a large portion of SSA?s own
workforce over the next decade and changing customer expectations for the
types of services delivered will further strain agency operations. For
example, over 80 percent of SSA?s upper- level managers and executives (GS-
14, GS- 15, and Senior Executive Service level) will be eligible to retire
by 2010.
(SSA?s OIG refers to these challenges under its ?Service to the Public?
designation.)
SSA?s progress related to this challenge is contained under its strategic
goals ?to deliver customer- responsive, world- class service? and
?to strengthen public understanding of Social Security programs.?
SSA reported that it met about half of its fiscal year 2000 goals related to
this area. For example, SSA met its original goals for key indicators such
as the percentage of earnings posted correctly and the percentage of initial
SSI aged claims processed within 14 days of filing. For four other
indicators, SSA met its revised goals by lowering target performance (SSA
frequently cited insufficient budgetary resources as the reason for its
actions). For the 11 goals it did not meet, SSA often cited measurement
constraints as well as high workloads as reasons. For seven indicators, data
were not yet available for us to assess performance.
See our discussion in this report under the key outcome to provide timely,
accurate, and useful information and services to the public for our
assessment of applicable SSA goals and measures.
SSA?s plans to address this challenge are included under its strategic goals
?to deliver customer- responsive, world- class service? and ?to strengthen
public understanding of the Social Security programs.?
SSA?s 2002 plan also includes several key initiatives to better position the
agency for future service delivery challenges, such as improving weaknesses
in its 800- Number service and obtaining feedback from customers (SSA?s
?Talking and Listening to Customers? pilot project). However, the plan does
not contain specific indicators to measure SSA?s progress in this important
area. SSA?s plan also notes that the agency plans to rely upon investments
in information technology to attain its longrange service vision- for
example, its 2010 Service Vision. SSA reported that it is currently
developing technology strategies and process change plans to help improve
service delivery.
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Page 27 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Major management challenge Progress in resolving major management
challenge as discussed in the fiscal year 2000 performance report Applicable
goals and measures in the
fiscal year 2002 performance plan GAO- and IG- designated major management
challenge
Further Strengthen Controls to Protect SSA Information: See discussion under
information security governmentwide high- risk area.
(SSA?s OIG also identified this as a management challenge under its
?Critical Information Infrastructure? and ?Systems Security and Controls?
designations.)
See discussion under information security governmentwide high- risk area.
See discussion under information security
governmentwide high- risk area.
OIG- designated major management challenge
Earnings Suspense File: The Earnings Suspense File (ESF) continues to grow
each year. Since the ESF consists mainly of wage items that could not be
matched to individuals? records, there is concern about whether eligible
individuals will receive the full amount due them in their retirement years.
Another concern is the additional cost required to match data to individual
records. The ESF is also indicative of a nationwide problem of potential
fraud and misuse.
SSA?s progress in this area was reported under its strategic goal to ?make
SSA program management the best- in- business, with zero tolerance for fraud
and abuse.?
SSA?s fiscal year 2000 report indicates that SSA made mixed progress on its
performance indicators related to the ESF in fiscal year 2000. SSA did not
meet its goal to post 98 percent of wage items to individuals? records by
September 30 (it posted 97.6 percent), although it did meet its goal of
posting 99 percent of earnings correctly.
SSA?s plans to address this issue are included under its strategic goal ?to
ensure the integrity of Social Security programs, with zero tolerance for
fraud and abuse.?
SSA?s 2002 plan contains several specific numeric goals related to the ESF:
to post 98 percent of wage items to individuals? records by September 30; to
post 99 percent of earnings correctly; and to have 30 percent of employee
reports (for example, W- 2s) filed electronically. SSA?s plan also contains
a specific initiative to reduce the size and growth of the ESF.
In its plan, SSA reported that the OIG has acknowledged improvements over
the years in the timeliness and accuracy of posting wages to individuals?
records. However, the OIG remains concerned about the volume of wages posted
to the ESF because SSA is not able to match the report to valid names and
Social Security number (SSN).
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Page 28 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Major management challenge Progress in resolving major management
challenge as discussed in the fiscal year 2000 performance report Applicable
goals and measures in the
fiscal year 2002 performance plan OIG- designated major management challenge
Enumeration: Enumeration is the process of assigning SSNs to workers and
beneficiaries. It also entails issuing replacement cards to people with
existing SSNs and verifying SSNs for employers and other federal agencies.
The importance of SSNs in today?s society and the advances in technology
increase the risk of fraudulent attempts to attain SSNs. SSA must employ
effective frontend controls in the enumeration process to prevent fraud and
identity theft. OIG commends many of SSA?s initiatives to address these
vulnerabilities. However, OIG continues to believe further action and review
are necessary.
SSA?s progress in this area was reported under its strategic goals ?to
provide timely, accurate, and useful information and services to the public?
and ?to make SSA program management the best- in- business, with zero
tolerance for fraud and abuse.?
SSA?s fiscal year 2000 report noted that it met two of its three performance
indicators related to enumeration. However, we were unable to assess SSA?s
accuracy indicator- to issue 99. 8 percent of SSNs accurately- because data
were not yet available, according to SSA.
SSA?s plans to address this issue are included in its strategic goal ?to
ensure the integrity of Social Security programs, with zero tolerance for
fraud and abuse.?
SSA?s plan contains one performance indicator and accompanying goal related
to enumeration- to issue 99. 8 percent of SSNs accurately. In SSA?s 2002
plan, this indicator appears under a new SSA customer service strategic
objective namely, to maintain the accuracy, timeliness, and efficiency of
services to customers applying for SSNs and replacement cards through 2005.
OIG- designated major management challenge
Identity Theft: Over the years, the SSN has been adopted for numerous other
purposes so that today it is the single most widely used identifier for
federal and state governments as well as the private sector. The misuse of
SSNs to commit crimes is a fast- growing area of concern, particularly in
the area of identity theft. SSA?s OIG expects the number of allegations
through the Fraud Hotline to continue to grow unless action is taken to
regulate the uses of SSNs.
SSA?s fiscal year 2000 report did not contain any specific goals or measures
in this area. Therefore, we were unable to assess SSA?s progress in
addressing this management challenge.
SSA?s 2002 plan does not contain any specific goals or measures in this
area.
However, the management challenges section of SSA?s fiscal year 2002 plan
states that its OIG credited SSA with recognizing the need to reduce its
vulnerability to identity fraud. However, SSA reported that the OIG stated
these initiatives focused on fraud detection, not fraud prevention. SSA?s
2002 plan indicates that its initiatives related to the enumeration risk
area (see above) also applied to the identity theft risk.
Appendix I: Observations on the Social Security Administration?s Efforts to
Address Its Major Management Challenges
Page 29 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Major management challenge Progress in resolving major management
challenge as discussed in the fiscal year 2000 performance report Applicable
goals and measures in the
fiscal year 2002 performance plan OIG- designated major management challenge
Representative Payees: SSA has the authority to appoint representative
payees for beneficiaries who are judged incapable of managing or directing
the management of their benefits. Due to the risk of representative payees
misusing the funds and the vulnerability of beneficiaries, it is imperative
that SSA have appropriate safeguards to ensure representative payees meet
their responsibilities. OIG audits have identified numerous weaknesses in
the selection, monitoring, and accountability of representative payees.
SSA?s fiscal year 2000 report did not specifically address this challenge.
SSA?s report contained one indicator that is indirectly related to this
area- representative payee actions processed. This indicator appeared under
its strategic goal ?to make SSA program management the best- in- business,
with zero tolerance for fraud and abuse.? The goal for this indicator was to
process 6,990, 600 such actions; in 2000 SSA reported that it processed
6,151,264. SSA acknowledged that it has little control over the
environmental factors affecting these actions, and reported that it may need
to modify this measure.
SSA?s fiscal year 2002 plan contains one indicator under its anti- fraud
strategic goal- representative payee actions processed- which is indirectly
related to this challenge.
SSA plans to process 6, 882, 000 such actions in fiscal year 2002. Also, the
plan contains an initiative to make improvements to the representative
payment program through various projects, such as, a custody verification
demonstration project for parent payees and ongoing integrity reviews of the
program. Also, in fiscal years 2001 and 2002, SSA plans to conduct
activities including site visits and random reviews of fee- for- service and
volume payees and developing additional beneficiary educational materials.
Appendix II: Comments From the Social Security Administration
Page 30 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Appendix II: Comments From the Social Security Administration
Note: GAO?s comments supplementing those in the report text appear at the
end of this appendix.
Appendix II: Comments From the Social Security Administration
Page 31 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Appendix II: Comments From the Social Security Administration
Page 32 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
See comment 1.
Appendix II: Comments From the Social Security Administration
Page 33 GAO- 01- 778 SSA's Status of Achieving Key Outcomes
Appendix II: Comments From the Social Security Administration Page 34 GAO-
01- 778 SSA's Status of Achieving Key Outcomes
The following is GAO?s comment on the Social Security Administration?s
letter dated June 8, 2001.
1. Our draft report does not state that separate OASI and DI payment
accuracy measures appear in SSA?s prior annual performance plan (APP). Our
concern is that the current plan includes a consolidated measure of OASI/ DI
nonmedical payment accuracy, making it difficult for SSA to monitor and
manage performance in either program. Thus, SSA should revise its GPRA
reporting of these data. GAO Comment
Appendix III: GAO Contacts and Staff Acknowledgments Page 35 GAO- 01- 778
SSA's Status of Achieving Key Outcomes
Daniel Bertoni, (202) 512- 5988 In addition to the contact named above,
Shirley L. Abel, Michael A. Alexander, Carol A. Langelier, Valerie C.
Melvin, R. Elizabeth O?Toole, and Anthony J. Wysocki made key contributions
to this report. Appendix III: GAO Contacts and Staff
Acknowledgments GAO Contact Staff Acknowledgments
(130037)
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