Department of Health and Human Services
DEPARTMENTAL APPEALS BOARD
Appellate Division
SUBJECT: Northwest Georgia Services, Inc.
DATE: June 14, 1994
Docket No. A-94-100
Decision No. 1478 ACN A-04-94-28234
DECISION
The Northwest Georgia Services, Inc. filed a notice of appeal from a
February 23, 1994 determination of the Administration for Children and
Families (ACF) disallowing $1,046,898 for certain costs under
appellant's Head Start grant for program years ended August 31, 1992 and
August 31, 1993.
The appellant in its notice of appeal stated:
Northwest Georgia Services does not have any other assets that can
be converted to cash, nor does it have any cash on hand other than
the amounts necessary to pay employee withholding and FICA taxes.
The assets of the entire Board of Directors coupled with the assets
of the entire community, if available, would not be sufficient to
retire this monetary funding [finding].
The appellant requested that the Board grant it relief from the
disallowance.
On April 7, 1994, the Board acknowledged the notice of appeal and issued
an order to show cause. The order directed the appellant to show cause
why the Board should not issue a summary decision upholding the
disallowance since the appellant apparently did not dispute the legal
and factual basis for the disallowance and since the Board does not have
the authority to grant the kind of equitable relief the appellant
requested. The appellant was given 30 days from its receipt of the
order to file a response.
The certified mail receipt for the order shows that the appellant's
representative received it on April 28, 1994, so that the response was
due to be filed May 31, 1994. We have not received a filing or any
communication from the appellant seeking an extension to file a
response.
Consequently, the appellant has left undisputed our preliminary
analysis. While we are sympathetic to the appellant's circumstances, as
we explained in the order, the Board does not have the authority to
grant the kind of equitable relief requested here. The Board is bound
by all applicable laws and regulations and has no authority to waive a
disallowance. See 45 C.F.R. 16.14; Guam Dept. of Public Health and
Social Services, DAB No. 1050 (1989) at 8; and Tulsa Community Action
Agency, DAB No. 789 (1986) at 6.
Thus, consistent with the order to show cause, we affirm the
disallowance.
Judith A. Ballard
Norval D. (John) Settle
Cecilia Sparks Ford Presiding Board Member