TN 44 (04-24)

DI 39506.001 DDS Financial Management


Social Security Act - Sections 221(a) and 1633; Code of Federal Regulations 20 C.F.R. 404.1626 and 416.1026; 2 C.F.R. 200

A. Background

20 CFR 404.1626 and 416.1026, that were effective June 1, 1981, provide that the Commissioner of the Social Security Administration “will give the State funds...for necessary costs in making disability determinations....” The regulations provide that SSA will notify the State of the amount of funding that will be made available to it as well as what anticipated costs are being approved. The State may not incur or make expenditures for items of cost not approved by SSA or in excess of the amount SSA makes available to the State. The State will submit a report of its actual expenditures. Any money the State spends for purposes not within the scope of the regulations must be repaid to the Treasury of the United States.

B. Policy

1. General

State agencies are expected to exercise reasonable care in the expenditure of funds required for making SSA disability determinations. These funds must be effectively and economically used in carrying out the provisions of the disability program.

SSA will provide the State with funding for all expenses (direct or indirect) necessary to make disability determinations. All expenditures are deemed necessary if:

  • incurred for the SSA disability determination process;

  • in accordance with standards and other written guidelines of the Commissioner;

  • approved by SSA; and

  • within the limits of the approved State budget.

Any class or kind of administrative expenditure (in the proper amount for services, goods, or facilities) deemed essential to making SSA disability determinations is generally considered properly chargeable to SSA.

2. State practice

a. Operating within framework of State regulations

It is the desire and intent of SSA that State agencies operate within the framework of rules, regulations, and procedures promulgated by the State for establishing and charging obligations to appropriate accounting periods.

b. Where conflict exists between Federal and State regulations

The financial guidelines contained in the following sections should be followed by the State agency if not in conflict with the fiscal directives of the State. Where a conflict exists, the DDS should inform the regional office in writing and submit copies of pertinent State directives; no action should be taken pending approval by the SSA regional office.

To Link to this section - Use this URL:
DI 39506.001 - DDS Financial Management - 04/01/2024
Batch run: 04/01/2024