The Social Security Administration's (SSA) Office of the Inspector General (OIG) has released an audit report revealing significant errors in the agency's processing of administrative sanctions and the recovery of related overpayments, leading to an estimated $49.6 million in improper payments.
The audit, which reviewed cases referred between June 2017 and May 2022, found that SSA employees and systems made errors in 75 percent of sampled administrative sanction cases. These errors included withholding benefits for incorrect periods, failing to suspend benefits when required, inadequate documentation of sanction determinations, and sending inaccurate or incomplete notices to individuals.
Many of these issues were attributed to complex manual processes, inconsistent documentation practices, and limitations within SSA's existing systems for handling sanctions and overpayment recoveries. Michelle L. Anderson, Assistant Inspector General for Audit performing the duties of the Inspector General, said, “Administrative sanctions are an important tool for protecting the integrity of Social Security programs and deterring fraud.” She added that SSA can strengthen these efforts by improving oversight, modernizing systems controls, and ensuring employees consistently follow policies.
While SSA began implementing system improvements in 2025, including enhanced tracking, the OIG report indicates further action is necessary. Auditors recommended updating policies, strengthening system controls, improving documentation, enhancing notice review procedures, and ensuring full recovery of overpayments. SSA has agreed with these recommendations and plans to take corrective action.