Action Needed To Resolve Problem of Outstanding Supplemental Security Income Checks

Several proposals before the 96th Congress would have placed a time limit on the negotiation of Federal Government checks issued monthly to Supplemental Security Income (SSI) recipients. However, none of the proposals were enacted. Under present legislation, these and other Government checks are payable without time limitations. GAO conducted a review designed to quantify the number and amount of SSI checks not cashed, determine why they were not cashed, and identify actions to alleviate check-cashing problems.

The Social Security Administration (SSA) has done little to reduce the number of uncashed SSI checks or determine why this condition exists. The Department of the Treasury, in following up on a number of uncashed checks, determined that the status of checks not presented to it for reconciliation would have to be determined by SSA. By identifying these checks and checking their recipients, SSA could determine the status of these checks and identify some potential ineligible recipients and recipients who need check-cashing assistance. Such actions could also improve the accuracy of the Treasury's accounting records. While SSA has the authority to request lists of uncashed checks from the Treasury and to follow up and to take appropriate actions such as canceling checks, removing ineligible recipients from the rolls, or providing needed check-cashing assistance, it has not done so. The Treasury's suggested alternative to the legislative proposals that were before the 96th Congress would allow for appropriate credits to be made to SSA and States and would give SSA the information it needs to follow up on uncashed checks. However, this could cost SSA an estimated $9 million in additional administrative costs and would not automatically clear the checks from the Treasury's accounting records.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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