A new Social Security Administration (SSA) audit found the agency did not always accurately pay or properly document student benefits, with an estimated $211 million in improper payments and $342 million in unsupported payments.
Of the 100 student beneficiaries reviewed, SSA correctly paid 71 in accordance with policy. However, SSA incorrectly paid 17 beneficiaries because of inaccurate or outdated school attendance information or because employees did not correctly determine when benefits should end. SSA also lacked required documentation to support payments to 12 beneficiaries.
The audit's objective was to determine whether SSA accurately paid student benefits to eligible beneficiaries. Based on the sample, auditors estimated the approximately $211 million in improper payments and $342 million in unsupported payments.
The SSA Office of the Inspector General recommended SSA take corrective action on the beneficiary records with identified payment errors and determine why inaccurate school attendance information, incorrect benefit termination dates, and missing Forms SSA-1372 continue to occur. It also recommended SSA take appropriate corrective actions to address these issues and strengthen controls over student benefit payments. SSA agreed with the recommendations.