Mike Cunnington Deputy Commissioner Information, Intelligence and Communications.
The Importance of Accounting at the Social Security Administration Peter D. Spencer Deputy...
-
Upload
laurel-bates -
Category
Documents
-
view
215 -
download
0
Transcript of The Importance of Accounting at the Social Security Administration Peter D. Spencer Deputy...
The Importance of Accounting at the Social Security Administration
Peter D. Spencer
Deputy Commissioner for Budget, Finance, Quality, and Management
Chief Financial Officer
November 19, 2014
2
Presentation Objectives•Provide an overview of the agency and BFQM
•Discuss how our operations tie into accounting
•Review major challenges we face as accountants
•Discuss initiatives to address challenges
•Look into the future of Social Security
3
About the Social Security Administration
• Social Security touches the lives of virtually every American, as our programs provide a safety net for millions of people:
In FY 2014, we paid over 63 million Americans $894 billion in benefits
We issued 16 million new and replacement cards
We handled more than 37 million calls on our 800 Number
We assisted over 40 million visitors to our field offices
Received 5 million applications for benefits
4
About the Social Security Administration
• We need a vast network of facilities, technology, and skilled staff to serve the public:
The agency is led by Acting Commissioner Carolyn Colvin, who reports directly to the President
82,000 Federal and State employees
Nationwide network of 1,400 offices
International offices in hundreds of countries
Work with 54 States to make disability determinations
5
Budget, Finance, Quality, & Management
•Budget policy, formulation, and execution
•Accounting policy and operations
•Acquisition and grants programs
•Forms, publications, and printing program
•Facilities and supply management
•Environmental health and safety programs
•Quality reviews and improvement
•Security and emergency preparedness
6
Budget Information
•On a given day, SSA is working on three fiscal years of budgets simultaneously
•Our budgets are performanced-based/workload driven
•Our budget and accounting processes are very closely linked
•Information from accounting system is used as a baseline to develop following year’s budget
7
SSA’s Budget Account Structure
•Program Budget
Covers benefit payments to individuals
Mandatory portion of the Federal budget
• Administrative Budget Covers the cost of accomplishing our mission
Discretionary spending
Must compete for scarce resources with other agencies
8
SSA’s Administrative Budget
In FY 2015, our administrative budget is expected to be 1.3% of benefit payments –
a remarkable achievement!
SSA Program Budget
$947 Billion
Administrative Budget$12.024 Billion
9
Importance of Accounting• The Government is accountable for the use of its
resources
• Providing our financial report to our stakeholders enables them to:
Assess our accountability and stewardship of public resources
Determine whether our services improved or declined from the previous year
Evaluate whether we provided services efficiently and effectively
• Financial information enables Congress and Government Managers to make political, social, and economic decisions
• We use financial information as a tool to demonstrate funding needs to Congress for specific workloads
10
SSA’s Complex Accounting System• SSA has a unique accounting structure compared to
other agencies: General fund for Supplemental Security Income (SSI)
Trust funds for Social Security and Disability Insurance
Administrative expenses
Initially charged to one fund
Must allocate portions of administrative expenses to proper fund
Funded by the general fund and the OASI, DI, HI, and SMI trust funds
11
Accounting Cycle
• The accounting cycle covers: Budgeting – Tracks authorized spending of public
resources Cost analysis – Determines the cost of producing public
services Performance measures– Link between outputs and
outcomes, which provides a complete picture of how we are using our resources
Financial Accounting - Recording consequences of actual transactions and events
• We report the outcome of these transactions and events in our Agency Financial Report
12
Transactions and Events• Some examples of transactions and events that affect
our financial reports:
Benefit payments
Benefits due and payable
Payroll
Supplies and equipment
Leasing office space
Building maintenance
Security measures in field offices
13
Agency Financial Report
• Provides information to the President, Congress, and the public to assess our stewardship over the financial resources entrusted to us
• Includes annual audited financial statements required by the Chief
Financial Officers Act and satisfies several other legislative reporting requirements:
the Federal Managers’ Financial Integrity Act management’s assurance
the Debt Collection Improvement Act
the Improper Payments reporting
• Also includes performance discussion, auditor’s opinion and IG’s major management challenges
• Available at www.ssa.gov/finance/
14
Agency Financial Report•Producing the report is a team effort
•FY 2014 marks the 28th year that we published audited financial statements
•21st year we received a clean audit opinion
•Hoping to receive our 17th consecutive CEAR Award
15
Enhancing Financial Information
•Social Security Online Accounting and Reporting System (SSOARS)
•SSOARS Financial Information System Upgrade
•Social Security Electronic Remittance System (SERS)
•Improved Administrative Payments Technology
16
Numbers are Important But They
Don’t Tell The Whole Story
17
Challenges we Face – Keep CFO Out of Trouble!
18
Challenges We Face – Audit Process
•Financial Statement Audit Constant communication with auditors Address issues early in the process
•Evolving compliance standards Stay on top of emerging guidance Active in shaping accounting
requirements
•Managing Multiple Audits OIG, GAO, and Financial Management
System Reviews Stay involved from start to finish
19
Challenges We Face – Risk •Information Technology Risks Maintain secure and reliable IT services Address significant deficiency in
information controls identified by auditors
Risk-Based Corrective Action Plans
•Improper Payments Risk Assessment Improper Payments Governance Board Risk of beneficiaries receiving incorrect
payments Review of administrative payments
•Reputation Risk
20
Challenges We Face – Data Quality
•We must make data-driven decisions
•Ensure reliable, accurate, and consistent data
•Collaborate throughout agency
•Comply with Open Government Initiatives
Office of Open Government SAO for Federal Spending
•Validate data on USASpending.gov with financial information
21
Challenges We Face – Benchmarking
•President’s Management Agenda (PMA) Initiative
•Establishes cost, quality and performance metrics for mission support functions Acquisition Financial Management Real Property
•Working with OMB and GSA on metrics
•Agency missions and needs are different, so difficult to measure across the board
22
Challenges We Face – Fraud•Zero tolerance for fraud
•Fraud is increasing
•85 anti-fraud initiatives
•Centralized anti-fraud unit“To be the driving force behind the Social Security
Administration’s anti-fraud efforts by sponsoring new initiatives, supporting component anti-fraud efforts, and ensuring agency vigilance at preventing, detecting, and
investigating fraud.”
•National Anti-Fraud Committee
23
National Anti Fraud Committee
•NAFC was reestablished to oversee agency’s efforts and milestones in anti-fraud initiatives
•The Inspector General O'Carroll and I co-chair
•We report our progress on initiatives to Ways and Means Subcommittee on Social Security
•NAFC conference held September 2014
24
National Anti Fraud Committee
•Anti-Fraud initiatives include:
Increasing continuing disability reviews Expand Cooperative Disability Units Data analytics Anti-Fraud training
• NAFC conference September 2014
• Anti-Fraud suggestions mailbox
25
Look into the Future
•More on-line services
•my Social Security
•Vision 2025
•Continue to operate with limited resources
26
Questions?