Social Security Administration faces increasing demand for data

The Social Security Administration needs to invest in staff and technology to handle a growing demand for data from state and local governments, according to a report released on Wednesday by the Government Accountability Office.

SSA must answer the demand for data exchanges between it and other agencies. Data exchanges are networks of information technology systems that communicate securely with external networks used by partner agencies. SSA currently uses more than 3,000 exchanges, primarily to collect data from other agencies to support its Social Security benefits programs.

SSA also uses exchanges to verify Social Security numbers for other state and federal agencies. According to the report, SSA currently performs more than a billion such transactions a year for other agencies and the number continues to rise. The increased demand means the agency likely will have to invest in additional technology and support for its data exchanges.

"More agencies are using SSA data, and the level of service required is increasing," the report stated. "For example, according to SSA, an increasing number of outside organizations are requesting electronic verification of Social Security numbers and Supplemental Security Income eligibility. Additionally, in some cases, data must be accessible full time, with updates available in near real time. SSA may be challenged to retain the expertise and maintain the technology required to support the technical infrastructure and other resources needed to meet the increased demand."

SSA also is responsible for overseeing agencies' privacy and security safeguards to make sure they comply with federal guidelines. As more agencies request access to its online records, SSA might need to hire more staff with the technical expertise to evaluate their security practices, GAO reported.

The audit agency said SSA, in recognition of the increasing demand for its data, has created an electronic information exchange initiative, which in a July 2008 report included recommendations for improving the agency's management of data exchanges. GAO noted, however, that the report did not establish milestones for acting on the recommendations and urged SSA to define milestones to ensure the recommendations were resolved.

GAO also urged SSA to develop a comprehensive inventory of the data exchanges and the systems that support them to ensure they are effectively managed. SSA agreed with GAO's recommendations, stating that the milestones have since been established and a comprehensive inventory is currently under way.