Audit Report
Match of State Department Death
Information Against Social
Security Administration Records
062313 May 2024
MEMORANDUM
Date:
May 31, 2024
Refer to:
062313
To:
Martin O’Malley
Commissioner
From:
Gail S. Ennis
Inspector General
Subject:
Match of State Department Death Information Against Social Security Administration Records
The attached final report presents the results of the Office of Audit’s review. The objective was
to determine whether the Social Security Administration issued payments to beneficiaries who
were deceased according to State Department records.
If you wish to discuss the final report, please contact Michelle L. Anderson,
Assistant Inspector General for Audit.
Attachment
Match of State Department Death Information Against
Social Security Administration Records
062313
May 2024 Office of Audit Report Summary
Objective
Our objective was to determine
whether the Social Security
Administration (SSA) issued payments
to beneficiaries who were deceased
according to State Department
records.
Background
SSA administers the Old-Age,
Survivors, and Disability Insurance
(OASDI) and Supplemental Security
Income (SSI) programs under Titles II
and XVI of the Social Security Act,
respectively. OASDI provides benefits
to workers and eligible family
members in the event a worker retires,
becomes disabled, or dies. SSI
provides monthly payments to
individuals who are aged, blind, or
disabled and meet certain income and
resource limits. Under both programs,
payments should terminate when a
beneficiary dies.
When a U.S. citizen dies abroad and
the death is reported to the U.S.
embassy or consulate, the State
Department confirms the decedent’s
death, identity, and U.S. citizenship
and completes and mails to SSA a
Form DS-2060, Consular Report of
Death of a U.S. Citizen Abroad. SSA
treats State Department reported
death information as verified evidence
of death.
The State Department provided us
death information from its Consular
and Passport systems for
approximately 460,000 U.S. citizens
who died from January 1970 through
July 2022.
Results
We identified 1,596
current or suspended payment status
beneficiaries who were deceased according to State Department
death data.
We reviewed 100 randomly selected cases. In 91 cases, it
appeared that State Department death information was correct and
that SSA issued 80 beneficiaries approximately $2.4 million in
payments after death. This occurred because SSA and State
Department had not established a process to timely obtain first-
party reports of death for U.S. citizens who died abroad. In
addition, the State Department initiated, but did not send
completed, Forms DS-2060 to SSA in instances where certain
decedent information, that SSA did not require to terminate benefit
payments, was missing from its records. Examples include cause
of death, next of kin, disposition of the decedent’s remains, or proof
of death documentation (death certificate) in cases where a first
party reported the death.
Based on our sample results, we estimate SSA issued
approximately $37.8 million in payments to 1,277 beneficiaries who
were deceased according to State Department records. We
estimate that identifying and correcting these discrepancies
prevented, or will prevent, approximately $4.9 million in additional
payments after death over a 12-month period.
Agency Corrective Actions
As of May 28, 2024, SSA added death information to 372 of the
1,596 beneficiaries’ records.
Recommendations
We recommended SSA (1) review the 1,596 cases, (2) work with
State Department officials and develop an electronic method to
timely report death information for U.S. citizens who die abroad,
and (3) work with State Department officials to timely forward
reports of death abroad when State Department obtains a first-
party report of death.
SSA agreed with recommendations 1 and 2. SSA disagreed with
recommendation 3 but agreed to satisfy the intent of the
recommendation through implementation of recommendation 2.
Match of State Department Death Information Against Social Security Administration Records (062313)
TABLE OF CONTENTS
Objective ..................................................................................................................................... 1
Background ................................................................................................................................. 1
Results of Review ....................................................................................................................... 1
Agency Corrective Actions .......................................................................................................... 3
Recommendations ...................................................................................................................... 3
Agency Comments ...................................................................................................................... 3
OIG Response ............................................................................................................................ 3
– Scope and Methodology .................................................................................. A-1
– Sampling Methodology and Results ................................................................. B-1
– Agency Comments........................................................................................... C-1
Match of State Department Death Information Against Social Security Administration Records (062313)
ABBREVIATIONS
OIG Office of the Inspector General
OASDI Old-Age, Survivors, and Disability Insurance
POMS Program Operations Manual System
SSA Social Security Administration
SSI Supplemental Security Income
U.S.C. United States Code
FORM
DS-2060 Consular Report of Death of a U.S. Citizen Abroad
Match of State Department Death Information Against Social Security Administration Records (062313) 1
OBJECTIVE
Our objective was to determine whether the Social Security Administration (SSA) issued
payments to beneficiaries who were deceased according to State Department records.
BACKGROUND
SSA administers the Old-Age, Survivors, and Disability Insurance (OASDI) and Supplemental
Security Income (SSI) programs under Titles II and XVI of the Social Security Act, respectively.
1
OASDI provides benefits to workers and eligible family members in the event a worker retires,
becomes disabled, or dies. SSI provides monthly payments to individuals who are aged, blind,
or disabled and meet certain income and resource limits. Under both programs, payments
should terminate when a beneficiary
2
dies. The Agency receives death information from a
variety of sources, such as friends and relatives of deceased individuals, funeral homes,
financial institutions, and Federal and state agencies.
SSA does not verify first-party reports of death from acceptable reporters and considers the
death information to be “verified.”
3
Examples of first-party reporters include a relative such as a
spouse, parent, or sibling; or a representative payee. When SSA receives verified death
information, it does not require documented proof of death (for example, a death certificate) to
terminate a decedent’s OASDI or SSI payments; however, if the death results in another
person’s potential entitlement, SSA must obtain documented proof of death.
When a U.S. citizen dies abroad and the death is reported to the U.S. embassy or consulate,
the State Department confirms the decedent’s death, identity, and U.S. citizenship and enters
the death information into its Consular and Passport systems. The State Department provided
us death information from its Consular and Passport systems for approximately 460,000 U.S.
citizens who died from January 1970 through July 2022. After the State Department has
collected specific information about the decedent (for example, obtained proof of death,
identified next of kin, identified the disposition of the decedent’s remains), it completes and
mails
4
to SSA a 1-page Form DS-2060, Consular Report of Death of a U.S. Citizen Abroad.
SSA treats State Department reported death information as verified evidence of death.
RESULTS OF REVIEW
We identified 1,596 beneficiaries in current or suspended payment status
5
whose personally
identifiable information matched that of a decedent in State Department death data and
provided SSA with the beneficiaries’ State Department death information. We reviewed
100 randomly selected cases.
6
In 91 cases, it appeared State Department death information
1
Social Security Act §§ 201 and 1601, 42 U.S.C. §§ 401 and 1381.
2
We use the term beneficiary to refer to both OASDI beneficiaries and SSI recipients.
3
SSA, POMS, GN 02602.050.C. (May 5, 2023).
4
SSA officials informed us the State Department can email Form DS-2060 from U.S. consulates in Canada. Canada
is the only country for which SSA and the State Department use an electronic process to transmit death information.
5
Included 767 beneficiaries in current payment status and 829 in suspended payment status.
6
Included 46 beneficiaries in current payment status and 54 in suspended payment status.
Match of State Department Death Information Against Social Security Administration Records (062313) 2
was correct, and SSA issued 80 beneficiaries approximately $2.4 million in payments after
death. In the nine remaining cases, we could not make a clear determination of the
beneficiaries’ status based on SSA and State Department data.
7
This occurred because SSA and State Department had not established a process to timely
obtain first-party reports of death for U.S. citizens who died abroad. To illustrate:
In August 2019, a retirement beneficiary died in the Philippines. In August 2023, State
Department officials informed us its American Consulate General in Manila, Philippines,
initiated, but had not completed, a Form DS-2060. In January 2024, State Department
completed Form DS-2060. SSA added death information to the beneficiary’s record on
February 5, 2024 but had not terminated the beneficiary’s payments as of April 3, 2024.
SSA has issued approximately $51,000 in payments after the beneficiary’s death.
In May 2020, a retirement beneficiary died in Spain. However, the State Department did not
provide SSA a Form DS-2060 until August 2023. SSA terminated the benefit payments and
determined it issued $66,988 in payments after beneficiary’s death.
In addition, the State Department initiated, but did not send completed, Forms DS-2060 to SSA
in instances where certain decedent information, that SSA did not require to terminate benefit
payments, was missing from its records. Examples include cause of death, next of kin,
disposition of the decedent’s remains, or proof of death documentation (death certificate) in
cases where a first party reported the death.
8
To illustrate:
In October 2010, a retirement beneficiary died in Romania. The State Department initiated,
but did not complete, Form DS-2060 or otherwise report the death to SSA because it did not
have information regarding the place of death, next of kin, or disposition of the decedent’s
remains. The beneficiary remains in current payment status. SSA has issued
approximately $125,000 in payments after the beneficiary’s death.
In March 2020, a retirement beneficiary died in the Philippines. The State Department
completed, but did not send, Form DS-2060 to SSA because after the decedent’s family
reported the death to the State Department, they did not provide an official death record.
SSA suspended the benefits in February 2023 after the beneficiary did not respond to an
SSA request for information. SSA terminated the benefits in September 2023 and
determined it issued $58,139 in payments after the beneficiary’s death.
In August 2015, a retirement beneficiary died in Costa Rica. The State Department had not
completed Form DS-2060 or reported the death to SSA because it did not have information
regarding the decedent’s next of kin or disposition of the decedent’s remains. SSA issued
approximately $9,000 in payments after death before suspending the benefits in 2017, after
the beneficiary did not return a Foreign Enforcement Questionnaire.
7
For example, SSA records indicated field office staff conducted a face-to-face interview with a beneficiary after the
date of death in State Department records, or that SSA had already posted the death information reported by State
Department on the record of the beneficiary’s parent.
8
SSA officials informed us the Agency does not have a data-exchange agreement or a Memorandum of
Understanding with State Department to specify the death information it requires and/or the timeframe for providing
the death reports.
Match of State Department Death Information Against Social Security Administration Records (062313) 3
Based on our sample results, we estimate SSA issued $37.8 million in payments after death to
1,277 beneficiaries who were deceased according to State Department records. SSA can
improve its death information-sharing process with State Department and more timely receive
death information for beneficiaries who die while outside the United States.
AGENCY CORRECTIVE ACTIONS
As of May 28, 2024, SSA added death information to 372 of the 1,596 beneficiaries’ records.
RECOMMENDATIONS
We recommend SSA:
1. Review and take appropriate action (for example, verify the beneficiaries’ vital status, input
death information, terminate payment records, initiate recovery of improper payments) on
the remaining cases in our population of 1,596 beneficiaries reported as deceased in State
Department records.
2. Work with State Department officials and develop an electronic method to timely report
death information for U.S. citizens who die abroad.
3. Work with State Department officials to timely forward reports of death abroad when State
Department obtains a first-party report of death.
AGENCY COMMENTS
SSA agreed with recommendations 1 and 2. SSA disagreed with recommendation 3 and stated
the Agency would negotiate the timeliness of receiving overseas death reports as part of
implementing recommendation 2. See the full text of Agency Comments in Appendix C.
OIG RESPONSE
While SSA stated it disagreed with recommendation 3, its comments indicate the Agency plans
to satisfy the intent of the recommendation through implementation of recommendation 2.
Therefore, we will monitor SSA’s implementation of recommendations 2 and 3 in tandem.
M
ichelle L. Anderson
Assistant Inspector General for Audit
Match of State Department Death Information Against Social Security Administration Records (062313)
APPENDICES
Match of State Department Death Information Against Social Security Administration Records (062313) A-1
– SCOPE AND METHODOLOGY
To accomplish our audit objective, we:
Reviewed the Social Security Administration’s (SSA) Program Operations Manual System,
Federal laws, and prior Office of the Inspector General reports related to death information
processing.
1
Contacted SSA officials to gain an understanding of death information reporting processes
as well as SSA management controls regarding beneficiaries who die abroad.
Obtained a data file from State Department officials that contained death information for
approximately 460,000 U.S. citizens who died abroad from January 1970 through July 2022.
Processed the State Department death information through the Electronic Verification
System and against SSA payment records to identify beneficiaries (1) whose personally
identifiable information matched that of a decedent in State Department records and (2) who
were in current or suspended payment status as of April 2023.
Tested the data by tracing a sample of data to source (payment record) documents.
Identified 1,596 current or suspended pay beneficiaries whose personally identifiable
information matched decedents in State Department death data.
For 100 randomly selected cases we:
Reviewed SSA’s records to ensure the decedent in State Department records was the
SSA beneficiary.
Requested State Department provide Form DS-2060, Consular Report of Death of a
U.S. Citizen Abroad.
Determined whether the Numident contained a date of death or SSA’s Evidence Portal
contained a report of death.
Calculated estimated improper payments issued after death through August 2023 and
estimated our results (see Appendix B).
The audited entities were SSA’s Office of Operations and Systems. We assessed the
significance of internal controls necessary to satisfy the audit objective. This included an
assessment of the five internal control components, including control environment, risk
assessment, control activities, information and communication, and monitoring. In addition, we
reviewed the principles of internal controls associated with the audit objective. We identified the
following component and principles as significant to the audit objective:
1
SSA, OIG, Payments to Individuals Listed as Deceased in Department of Veterans Affairs’ Records,
A-06-16-50029, (August 2017); Match of Treasury Death Information Against Social Security Administration Records,
A-06-18-50568, (August 2018), Match of Centers for Medicare & Medicaid Services Death Information Against Social
Security Administration Records, A-06-18-50653, (August 2021).
Match of State Department Death Information Against Social Security Administration Records (062313) A-2
Component 3: Control Activities
Principle 10: Design control activities
Principle 12: Implement control activities.
We conducted our review between February 2023 and January 2024 in Dallas, Texas. We
conducted this performance audit in accordance with generally accepted government auditing
standards. Those standards require that we plan and perform the audit to obtain sufficient,
appropriate evidence to provide a reasonable basis for findings and conclusions based on our
audit objectives. We believe that the evidence obtained provides a reasonable basis for our
findings and conclusions based on our audit objectives.
Match of State Department Death Information Against Social Security Administration Records (062313) B-1
– SAMPLING METHODOLOGY AND RESULTS
We reviewed a random sample of 100 beneficiaries whose personally identifiable information
matched that of a decedent in State Department records.
Table B–1: Population and Sample Size
Description
Number of Cases
Population
1,596
Sample Size
100
Of the 100 cases, 80 resulted in approximately $2.4 million in improper payments. Based on
our sample results, we estimate the Social Security Administration issued approximately
$37.8 million in payments after death to 1,277 beneficiaries.
1
Table B–2: Improper Payments in Sample
Description
Number of Cases with
Improper Payments
Improper Payment
Amounts
Sample Results
80
$2,369,467
Projected Quantity/Point Estimate
1,277
$37,816,696
Projection Lower Limit
1,158
$27,105,470
Projection Upper Limit
1,375
$48,527,923
Note: All projections are at the 90 percent confidence level.
We estimate identification and correction of these discrepancies prevented, or will prevent,
approximately $4.9 million in additional improper payments after death over a 12-month period,
as shown in the following table.
2
Table B–3: Improper Payments to Deceased Beneficiaries over a 12-Month Period
Description
Number of
Deceased
Beneficiaries
Improper
Payment
Amounts
Avoided
24
$305,566
383
$4,926,099
277
$3,389,858
507
$6,462,341
Note: All projections are at the 90 percent confidence level.
1
We based this estimate on the assumption that conditions remained the same for a 12-month period.
2
We based this estimate on the assumption that conditions remained the same for a 12-month period.
Match of State Department Death Information Against Social Security Administration Records (062313) C-1
– AGENCY COMMENTS
SOCIAL SECURITY
MEMORANDUM
Date:
May 23, 2024 Refer To: TQA-1
To:
Gail S. Ennis
Inspector General
From:
Dustin Brown
Acting Chief of Staff
Subject:
Office of the Inspector General Draft Report “Match of State Department Death Information
Against Social Security Administration Records” (062313) -- INFORMATION
Thank you for the opportunity to review the draft report. We appreciate the Office of Inspector
General’s analysis which illustrates that timely death reports from the Department of State would
help us reduce overpayments. We agree with recommendations 1 and 2. We disagree with
recommendation 3, since timeliness of receiving overseas death reports will be negotiated as a
part of implementing recommendation 2.
Please let me know if I can be of further assistance. You may direct staff inquiries to Trae
Sommer at (410) 965-9102.
Mission: The Social Security Office of the Inspector General (OIG) serves the
public through independent oversight of SSA’s programs and operations.
Report: Social Security-related scams and Social Security fraud, waste, abuse,
and mismanagement, at oig.ssa.gov/report.
Connect: OIG.SSA.GOV
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