We segment administrative payments into several categories to analyze and determine the vulnerability of these outlays to improper payments. These expenses largely consist of payroll and benefits and include payments to State agencies for Disability Determination Services and other administrative expenses, such as travel and rents.
|FY 2016 Administrative Expenses
(dollars in millions)
|Payroll and Benefits||$6,746|
|American Recovery and Reinvestment Act*||$70|
|Other Administrative Expenses**||$3,546|
|Total Administrative Expenses||$12,348|
We conducted a risk assessment on each of the categories in the table above and determined that our administrative payments are not at a significant risk of improper payments. Through combining this risk assessment with our strong internal controls, along with a number of financial audits that indicated no weaknesses in our process, we demonstrate that our administrative payments do not meet the criteria for further reporting to Congress or the Office of Management and Budget.