The Form SSA-872 is the official document that authorizes the State to incur obligations against Federal funds to meet its approved necessary costs. The SSA-872 notifies the State agencies of the funding that may be obligated or expended by the State and the dates covered by the funding. The SSA-872 is issued to the States on a quarterly basis or in six to eight week intervals (and when appropriate to distribute funding).

The regional office prepares the SSA-872s based on the allowance advice received from the Office of Disability Determinations. The regional office should submit copies as follows:

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  One copy via email to the appropriate staff in ODD and to DCO.ODD.DDRWM.Funding@ssa.gov

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  One copy via email to the appropriate staff in the Office of Finance and to OF.DDS.Funding@ssa.gov

The expenditure of funds for particular categories or purposes may be limited at any time by SSA.

The State agencies will observe the dates covered by the funding authorized on the SSA-872 and the cumulative limitation on expenditures. The State agencies should control the rate of expenditures throughout the year and take precautions to safeguard against inadvertent overexpenditure of SSA's budget for disability program operations.

State agencies must check their rate of expenditure monthly. If it appears that expenditures may exceed the cumulative obligational authorization for the dates covered by the funding, agencies must consult with the SSA regional office staff.

SSA is subject to the Anti-deficiency Act, which prohibits an agency from incurring obligations or making expenditures in excess of available appropriations (31 U.S.C. § 1341).

Occasionally, it may be necessary to reduce the obligational authorization for certain State agencies. This would occur, for example, when workloads fall short of estimates or when some other unforeseen trend or situation would make a reduction necessary. If it becomes clear that an agency will not need as much obligational authority as has been authorized, the authorization will be reduced. However, such reduction will be made only after advance consultation between the SSA regional office and State agency.