New Mexico Human Services Department, QC No. 2 (1991)

Department of Health and Human Services

Departmental Appeals Board

AFDC QUALITY CONTROL REVIEW PANEL

SUBJECT:  New Mexico Human      
Services Department
Docket No. A-91-102
Decision No. QC2

DATE:  October 4, 1991

 DECISION

The New Mexico Human Services Department (State) appealed
the June 6, 1991 Aid to Families with Dependent Children
(AFDC) quality control review determination by the Acting
Regional Administrator of the Administration for Children
and Families (Agency).  The Agency determined that J.C. 
 1/ was ineligible for $63 of the $269 AFDC payment she
received during the review month of December 1990.  This
determination was based on a federal quality control
review finding that J.C.'s youngest child was not
properly enumerated.  For the reasons stated below, we
agree with the Agency that this child was not properly
enumerated.  Therefore, we uphold the Agency's decision.

Relevant Statutory and Regulatory Provisions

Section 402(a)(25) of the Social Security Act (Act)
requires that a state's title IV-A plan "provide that
information is requested and exchanged for purposes of
income and eligibility verification in accordance with a
State system which meets the requirements of section 1137
of this Act."  Section 1137 in turn provides that, as a
condition of eligibility for title IV-A payments, a state
shall require that "each applicant for or recipient of
benefits . . . furnish to the State his social security
account number . . . ."  Section 1137(a)(1).  This
information is to be utilized primarily to obtain wage
information from various state and federal agencies to
verify the applicant's eligibility and the amount of
benefits to which the applicant is entitled.  See section
1137(b).  Section 408(c)(4) of the Act (42 U.S.C. section
608(c)(4)), which applies to erroneous payments made
after fiscal year 1990, states that "[n]otwithstanding
any other provision of this section, a payment shall be
considered an erroneous payment if the payment is made to
a family . . . (B) any member of which is a recipient of
aid under a State plan approved under this part and does
not have a social security account number (unless an
application for a social security account number for the
family member has been filed within 30 days after the
date of application for such aid)."

Regulations implementing the requirement for a social
security number (SSN) (referred to by the Agency as the
"enumeration requirement") appear at 45 C.F.R. 205.52,
which states in pertinent part that a state title IV-A
plan must provide that --

   (a) As a condition of eligibility, each applicant
for or recipient of aid will be required:

   (1) To furnish to the State or local agency a
social security account number, hereinafter referred
to as the SSN . . . ; and

   (2) If he cannot furnish a SSN (either because
such SSN has not been issued or is not known), to
apply for such number through procedures adopted by
the State or local agency with the Social Security
Administration.  If such procedures are not in
effect, the applicant or recipient shall apply
directly for such number, submit verification of
such application, and provide the number upon its
receipt.   2/

The record does not indicate what provisions concerning
the enumeration requirement, if any, were in the State's
IV-A plan.  However, the following provisions were
included in State ISD Manual Section No. FA 312(1987):

 In order for a person to be included in the
assistance unit, s/he must report his or her social
Security Number to the HSD.

 If any such person does not have a validated Social
Security Number, s/he must apply for one as a
condition of qualifying for assistance.  Application
is made by completing form SS-5 and giving it to the

 eligibility worker.  The person must also present
documents verifying age, citizenship and identity.

The Agency acknowledged that these provisions constitute
"permissible State practice" consistent with federal law.
 Agency Response, September 6, 1991, page 4.

The AFDC Quality Control Manual issued by the Agency
states that "[t]he QC review is to be conducted against
`permissible state practice' (PSP)."  QC Manual,
Appendix W, p. 1.

Factual Background

On May 18, 1990, J.C. applied for AFDC benefits for
herself and her two children, E.R. and N.C.  In
accordance with applicable requirements, J.C. supplied
SSNs for herself and her older daughter, E.R.  However,
she was unable to furnish a SSN for her younger daughter,
N.C., because N.C.'s social security card (SSC),
originally issued in September 1989, was lost or
destroyed and J.C. did not know the number.  State Appeal
Request at 1.

As of the review date, the local agency case record
concerning N.C.'s SSN contained: 1) an undated form
letter, "Message from Social Security," concerning when
the parents would receive their baby's SSN, ostensibly
given to J.C. when she first applied for a SSN for N.C.
under the enumeration at birth project.  State Appeal
Request, Exhibit 1, Attachment 2; 2) an unsigned form
SS-5 "Application for a Social Security Card," dated June
13, 1990.  State Appeal Request, Exhibit 1, Attachment 3;
and a State Form ISD 110 "Referral for Social Security
Number," which J.C. was to give to the Social Security
Administration (SSA) when she applied for N.C.'s SSN and
which was to be returned to the State by SSA.  The
portions of this form to be filled out by SSA are blank.
State Appeal Request, Exhibit 1, Attachment 4.   3/

State QC review found that the enumeration requirement
in this case was met as of the review date.  This finding
was based upon indications that a SSN had been issued
prior to application, as evidenced by the "Message from

Social Security" indicating that at one time an
application for a SSN for N.C. had been filed, and on the
presence in the case record of the SS-5.  State Appeal
Request, Exhibit 1, Attachment 5, QC Worksheet, Element
170.   4/

Federal QC review verified that on September 1, 1989,
N.C. was issued a SSN, but found that there was no
evidence in the case record that her SSN was reported to
the local agency.  Federal QC review also noted that the
SS-5 of June 13, 1990 did not meet SSA's evidentiary
requirements, as no evidence of identity for N.C. was
provided.  Federal QC review then determined that since
no SSN was furnished to the local agency, the case had
been overpaid $63.  State Appeal Request, Exhibit 1,
Attachment 8.

The State appealed and on June 6, 1991, the Agency upheld
the federal QC review determination concerning the $63
overpayment.  The Agency concluded that there was no
acceptable evidence that J.C had applied for a SSN on
N.C.'s behalf, nor was there evidence that a number was
ever reported to the State.  The Agency specifically
found that the procedures regarding proper documentation
of an application for a SSN required by the State Manual
were not followed.  State Appeal Request, Exhibit 2.

On appeal, the State argued that for purposes of QC
review, both federal statute and permissible State
practice precluded a finding of error.  The State
asserted that the express language of section 408(c)(4)
only considered as QC errors AFDC payments made to family
members who had no SSN and had not filed an application
for a SSN.  Thus, in the State's view, the mere fact that
N.C. had a SSN, although it was unknown and unreported,
was sufficient to preclude a finding of error.  The State
also contended that although federal regulations required
a second application for a SSN because N.C.'s SSC had
been lost and the number was unknown, failure to meet the
technical requirement of enumeration in this case should
not result in a QC error where the applicable statute
provides otherwise.  The State argued in the alternative
that the technical requirement of enumeration was met in
this case by N.C.'s June 13, 1990 application for a SSN.
 The State asserted that a completed form SS-5 was
provided to the eligibility worker (EW) in accordance
with permissible State practice.  The State also
asserted, and the Agency did not dispute, that there was
no indication that any response to this SS-5 application
was ever received.  Thus, the requirement in the State
Manual that an applicant report his or her SSN would not
be applicable.  State Appeal Request, June 26, 1991,
pages 1 - 5; State Reply, September 19, 1991, pages 1-4.

Discussion

Enumeration provides the AFDC program a means of
verifying an applicant's income in order to determine the
applicant's eligibility and benefit level.  An applicant
may have received a SSN prior to application, but the SSN
serves no purpose if the applicant does not make the AFDC
staff aware of it.   5/

In essence, the State is asserting that section 408(c)(4)
of the Act is inconsistent with the enumeration
requirement as set forth at 45 C.F.R. 205.52.  The State
is contending that because N.C. had a SSN as of the
review date, even though it was not available to the
local agency, N.C. should be considered properly
enumerated for AFDC purposes.  We disagree, and find that
these sections are consistent.

Section 408(c)(4) cannot be applied in a vacuum. 
Instead, it must be applied in such a way as to fulfill
the purpose of enumeration -- validation of eligibility
and income levels.  Validation cannot be accomplished
where an applicant to whom a SSN was previously issued no

longer knows the SSN.  If an applicant is unable to
furnish his or her SSN to the local agency, he or she
must apply for the SSN not to fulfill some technical
requirement, but so that the local agency can validate
eligibility and income levels.  Federal regulations at 45
C.F.R. 205.52 further the purposes of Section 408(c)(4)
by requiring that a state title IV-A plan must provide
that when an applicant cannot furnish his or her SSN,
either because it has not been issued or is not known,
the applicant must apply for a SSN through procedures
adopted by the state or local agency with SSA.

New Mexico's Manual regarding enumeration provides that,
if an applicant for AFDC does not have a validated SSN,
he or she must apply for one.  Application is to be made
by "completing" Form SS-5 and giving it to the EW with
documents verifying age, citizenship and identity.  In
this case N.C.'s SSC had been lost or destroyed and J.C.
had no record of N.C.'s SSN.  As J.C. could not furnish a
valid SSN for N.C., it was incumbent upon her both by
federal law and State practice, which was presumably
consistent with the State's IV-A plan, to apply for a SSN
for her daughter.  The record fails to establish,
however, that this was done in accordance with the State
Manual.

Specifically, the local agency case record contained a
form SS-5 for N.C., which J.C. did not sign.  State
Appeal Request, Exhibit 1, Attachment 3.  There is no
evidence in the record that the SS-5 was accompanied by
documents verifying N.C.'s age, citizenship and identity.
 There is also nothing in the case record to show that as
of the review date a completed application for a SSN had
been made on N.C.'s behalf to SSA or that a SSN was later
furnished to the local agency.

Since, as of the review date, N.C.'s SSN was not reported
to the State, and since, as of the review date, there is
no evidence that a completed application for a SSN was
filed with SSA, we conclude that N.C. was not properly
enumerated as of that date.

Conclusion

For the reasons discussed above, we conclude that $63 of
the $269 payment made to J.C. in December 1990 was
incorrect.  Accordingly, we affirm the Agency's
determination.

 

                                                       
                               Carolyn Reines-Graubard

 

                                                       
                               Maxine Winerman

 

                                                       
                               Carmen Cafasso


* * * Footnotes * * *

      1.    We identify the recipient by her initials in
order to protect her privacy. The State quality control
review number is 2111.

      2.    A more detailed background on the enumeration
requirement is provided in North Carolina Department of
Human Resources, DAB QC 91-88, pages 2 - 4.

      3.    The record also contains a card bearing the
notation "I'm a Girl", followed by data concerning N.C.
from an unspecified source.  State Appeal Request,
Exhibit 1, Attachment 2.  The State did not rely on this
document.
      4.    State QC review also noted that computer
records showed SS-5's sent for N.C. on 7/16/90 and
11/6/90. There were, however, no copies of these SS-5's
in the local agency case record and no SSN was received
as a result of their purported submission. State QC
review also noted that J.C. applied directly to SSA for a
SSN for N.C. on 1/8/91. State QC review then noted that
the SSN had not yet been received. State Appeal Request,
Exhibit 1, Attachment 5, Element 170.

      5.    In North Carolina Department of Human
Resources, DAB QC 91-88, this Panel held that a SSN was
provided to AFDC when it was provided to the Food Stamp
program which was a part of the same local agency, noting
that the AFDC Quality Control Manual defined "Local
Agency Case Control Record" as "[a]ll information
available to the local agency for use in making an
eligibility and payment determination including
information stored by automated systems."  Manual,
section 3030.  In contrast, in this case there is no
evidence that N.C.'s SSN was provided to any entity whose
files would be part of a "Local Agency Case Control
Record."