New York State Department of Social Services, DAB No. 1268 (1991)

Department of Health and Human Services

DEPARTMENTAL APPEALS BOARD

Appellate Division

SUBJECT:        New York State Department of Social Services

DATE: July 30, 1991
Docket No. 91-68
Decision No. 1268

DECISION

The New York State Department of Social Services (State) appealed a
decision of the Office of Child Support Enforcement (Agency) disallowing
$4,466,861 in claims for federal financial participation under Title
IV-D of the Social Security Act.  The disallowed amount represents the
federal share of interest earned on child support collections from
October, 1982 through December, 1989.

The State referred to its arguments in New York State Department of
Social Services, DAB No. 794 (1986), and requested that the Board issue
a summary decision based on its holding in that decision.  Counsel for
the Agency did not object.

We therefore sustain the disallowance of $4,466,861 based on DAB No.
794, which we incorporate here. 1/  Pursuant to that holding, the State
shall have the opportunity to show that interest ceased to be earned on
child support collections at an earlier date than that determined by the
Agency, and that a lesser amount of interest was actually earned.
Accordingly, the State will have 30 days (or such longer period as the
Agency determines appropriate) from receipt of this decision to submit
to .the Agency information justifying an earlier date.  If the State
disputes the Agency's further determination, it may return to the Board
for limited review of this issue within 30 days after receiving the
determination.

 


       Judith A. Ballard

 

 

       Alexander G. Teitz

 

 

       Norval D. (John) Settle Presiding Board Member. 1.   We
consider the rationale in DAB No. 794 to be a sufficient basis for
upholding the disallowance here.  We note, however, that the Agency
regulation at 45 C.F.R. 304.50 (which specifically refers to interest
income, but which was not in effect during the period at issue in DAB
No. 794) provides further support for the disallowance here.  See DAB
No. 794, n.