Social Security Administration

In 1994 Congress passed legislation making the Social Security Administration (SSA) an independent agency. As part of the transition, GAO was required to evaluate the interagency agreement for transferring personnel and resources from the Department of Health and Human Services (HHS) to SSA. GAO concludes that the two agencies have developed an acceptable methodology for identifying the functions; personnel; and other resources, such as furniture and computer equipment, to be transferred to an independent SSA. They have also made good progress toward completing the initiatives necessary for SSA to be a fully functional independent agency by March 31, 1995. However, SSA will continue to face serious policy and management challenges, including the long-range shortfall in funds to pay future Social Security benefits. Also, questions have been raised by GAO and others about the future growth of the Disability Insurance program and recent increases in Supplemental Security Income benefits.

GAO found that: (1) SSA and HHS have progressed towards the goal of SSA functioning as an independent agency; (2) HHS has successfully identified and transferred personnel and other resources to SSA; (3) there has been effective organizational changes prompted by the transition; (4) SSA and HHS have made changes to the SSA budget process, and SSA has initiated an effort to improve its claims processing function; (5) SSA and HHS have agreed that nonpersonnel transfers, such as funds, computer equipment, and furniture will be dependent on personnel transfers to SSA; (6) SSA will maintain its own legal and auditing departments; and (7) SSA will establish a Washington, DC office in order to bring about a closer working relationship with Congress and the executive branch.