Pennsylvania Department of Public Welfare, DAB No. 1544 (1995)

Department of Health and Human Services

DEPARTMENTAL APPEALS BOARD

Appellate Division

SUBJECT: Pennsylvania Department of Public Welfare


Docket No. A-96-006
Decision No. 1544

DECISION

The Pennsylvania Department of Public Welfare
(Pennsylvania) appealed a determination by the
Administration for Children and Families (ACF)
disallowing $25,516 in federal financial participation
(FFP) claimed under Title IV-D (Child Support and
Establishment of Paternity) of the Social Security Act
(Act) for the quarter ended June 30, 1995. ACF
determined that court fees collected by Pennsylvania in
child support cases were required to be treated as income
resulting from services under the child support
enforcement program. Therefore, ACF concluded that this
income would have reduced Pennsylvania's expenditures
eligible for FFP by the disallowance amount.

The issue presented by this case was previously raised
and addressed in Pennsylvania Dept. of Public Welfare,
DAB No. 1523 (1995), and Pennsylvania Dept. of Public
Welfare, DAB No. 1450 (1993).

In Pennsylvania Dept. of Public Welfare, DAB No. 1523
(1995), the Board found that section 455(a) of the Act
and the applicable regulations require Pennsylvania to
credit against its IV-D program expenses the court filing
fees at issue. 1/ Further, the Board found that the
language of the statute is clear and unambiguous and
requires Pennsylvania to exclude from its expenditures
claimed for FFP any fees which resulted from services
provided under the IV-D state plan, regardless of which
state entity collected the fees and how the collected
funds are used. Finally, the Board found that if an
agency policy, such as a policy interpretation question
memorandum, is contrary to an applicable regulation, the
Board must adhere to the applicable regulation.

Although the State disagreed with the Board's analyses in
DAB Nos. 1523 and 1450, the State agreed that a summary
decision is appropriate in this case. ACF also agreed to
this course of action.

We therefore sustain the disallowance of $25,516 based on
the reasoning and analysis in DAB No. 1523, which we
incorporate here in full.



Cecilia Sparks Ford



Norval D. (John) Settle



M. Terry Johnson
Presiding Board Member


1. This issue was also raised and addressed in
Pennsylvania Dept. of Public Welfare, DAB No. 1450
(1993). However, in DAB No. 1523, Pennsylvania argued
that the Board had not considered this issue in light of
a policy interpretation question memorandum issued by an
ACF official.