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HRD-80-23 1 (1979-11-19)

handle is hein.gao/gaobaazxz0001 and id is 1 raw text is: REPORT BY THE Comptroller General OF THE UNITED STATES Indirect Costs Of The Social Security Administration's Disability Programs Are Excessive And Should Be Reduced In 1978, the Social Security Disability In- surance program and the Supplemental Secu- rity Income program paid about $19.5 mil- lion in indirect charges to the State agencies for services provided in making disability de- terminations. In four of the six States GAO visited, these programs were overcharged at least $645,000 annually in indirect costs. Another $570,000 in program costs could have been saved if a more equitable method of allocating indirect costs had been used in two States. HEW regional negotiators do not adequately analyze the propriety of indirect costs. HEW headquarters has no adequate mechanism to assure itself that the regional negotiation procedures are applied effectively and uni- forml y. The Secretary of HEW needs to monitor the effectiveness of the procedures under which HEW negotiators approve indirect costs to assure that services being paid for are actu- ally benefiting the disability programs and ne- gotiators consider the most equitable alloca- tion methods. 110885 O07 83 4- HRD-80-23 NOVEMBER 19, 1979 R_

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