Weaknesses in the Social Security Administration's internal control structure could open the door for waste, fraud, and abuse, according to a Price Waterhouse audit of the agency.
The audit listed several deficiencies that could "adversely affect the agency's ability to meet internal objectives," such as properly recording and accounting for transactions.
The audit noted that SSA needs to better protect information, fully test plans for maintaining continuity of operations, improve its software development process and deal with "insufficient separation of duties" among its employees.
"In our view, these weaknesses demonstrate the need for SSA to do more to assure that adequate controls are provided for information collected, processed, transmitted, stored or disseminated in general support systems," the report stated.
The auditors suggested that SSA work to strengthen its agency-wide computer security program to protect against the risk of unauthorized access to sensitive benefits information.
In the process of reengineering, SSA has "empowered" its workers with increased processing responsibilities. An inherent risk in this process, the audit noted, is that the workers will perform functions outside the scope of their job duties.
The audit suggested that SSA managers exercise oversight to ensure individuals do not exceed or abuse assigned authorities.
SSA, in its response to the report, said it "did not concur" with the auditors' assertion that SSA needs improved controls to protect its information.
SSA makes more than $350 billion in payments to approximately 50 million beneficiaries through its programs, and processes approximately 225 million wage and tax statements annually for 138 million workers.
"In managing such large business processes, SSA also bears a responsibility to do so in a manner which provides reasonable, but not absolute, safeguards against fraud, waste and abuse," the report stated.
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