Department of Health and Human Services
DEPARTMENTAL APPEALS BOARD
Appellate Division
SUBJECT: New York
State
Department of Social Services
Docket
No. 90-206
Decision No. 1217
DATE: January 3, 1991
DECISION
The New York State Department of Social Services (State) appealed
a
decision by the Family Support Administration (Agency)
disallowing
$2,816,332 in federal financial participation claimed by the
State under
section 403(a) of the Social Security Act (Act) for the period
April
1989 through March 1990. The Agency found that the costs at issue
were
provided in connection with "social services" as defined at
section
403(a)(3) of the Act, which prohibits federal reimbursement under
Title
IV-A for costs associated with the provision of such social
services.
Arguing for reversal of the disallowance, New York contended that
the
disallowed costs were properly charged to Title IV-A based on
an
approved cost allocation plan. The State also maintained that
these
claims were allowable under the statutory exceptions in
section
403(a)(3)(C). Additionally, New York argued that at least part
of these
claims were attributable to income maintenance functions and,
therefore,
were allowable under section 403(a)(1). Finally, New York
asserted that
the Agency had misinterpreted several "claiming documents"
and
consequently had overstated the disallowance by approximately
$460,000.
The State acknowledged that legal issues raised by this appeal had
been
addressed by the Board in New York State Dept. of Social Services,
DAB
No. 759 (1986); and New York State Dept. of Social Services, DAB No.
932
(1988). However, based on the alleged overstatement of
the
disallowance, New York indicated that summary disposition of
these
issues would be inappropriate until the parties were able to reach
an
agreement as to the correct amount of the disallowance.
At the Board's direction, the Agency considered the possibility that
the
disallowance was overstated. In a December 7, 1990 submission,
the
Agency concluded "that the disallowed costs . . . [had] been
overstated"
by $458,989. By letter dated December 24th, the State
agreed with the
Agency's recalculation and asked the Board to direct the
Agency to
reduce the disallowance by $458,989. New York indicated that
once this
was accomplished, a summary decision would be appropriate.
Since the Agency conceded that the disallowance was initially
overstated
by $458,989, the Agency should reduce the disallowance
accordingly,
without a separate order from us to do so. Therefore,
based on
Decisions No. 759 and No. 932 (which we incorporate by reference),
we
sustain this disallowance in a revised amount consistent with
the
Agency's December 7th recalculation. This disallowance would also
be
subject to possible further reduction consistent with our
previous
decisions, DAB No. 759 and DAB No. 932.
Donald F. Garrett
Norval D. (John) Settle
Judith A. Ballard Presiding Board