Audit Report on the Impact of State Employee Furloughs on the SSA's Disability Programs

SSA provides Disability Insurance and Supplemental Security Income benefit payments to eligible individuals under Titles 2 and 16 of the Social Security Act.

To receive either benefit, an individual must file an application with SSA. Once an application is filed, an SSA field office determines whether the individual meets the non-disability criteria for benefits, and if so, forwards the claim to the disability determination services, or DDS, in the State or other responsible jurisdiction. DDSs are located in each of the 50 States plus the District of Columbia and Puerto Rico.

SSA reimburses the DDS for 100 percent of allowable expenditures up to its approved funding authorization. The expenditures include both costs directly related to claims processing, such as disability adjudicators' salaries, and indirect costs.

To deal with budget deficits, some States have instituted, or are considering, furloughs for State employees—including staff at the DDSs, which are 100-percent funded by SSA.