GAB Decision 644
April 25, 1985
New York State Department of Social Services;
Ballard, Judith A. Garrett, Donald F. Teitz, Alexander G.
Docket No. 84-227
The New York State Department of Social Services (State) appealed the
disallowance of $79,065 in federal financial participation by the
Administration for Children, Youth and Families, Office of Human
Development Services (Agency). The disallowance was based on the
Quarterly Statement of Expenditures dated May 12, 1984, submitted for
the quarter ended March 31, 1984. This report, according to the
disallowance, contained increasing adjustments for Title IV-A Foster
Care expenditures incurred between July 1974 and March 1982. The
grounds for the disallowance were that the claims were unallowable
because they were not filed within the limitations for timely filing of
claims in certain statutes and regulations. On November 16, 1984 the
Agency issued a revised disallowance, spelling out that $55,567 of the
total amount disallowed was related to expenditures in fiscal years
1974-79, and $23,498 related to fiscal years 1979-82. Section 306(b) of
Public Law 96-272 and 45 CFR 95.10 require that claims for expenditures
relating to FY 1979 and prior periods be filed by May 15, 1981. Claims
for FY 1980 and later must be filed within two years after the calendar
quarter in which the expenditures were made, as required by section 1132
of the Social Security Act and 45 CFR 95.7. The State questioned
particularly two items from Rockland County totalling $989.00. The
State contended that these items should not be disallowed since they
were "adjustments to prior years costs" and therefore not subject
to the
timely filing requirements. The Board split off this amount of $989.00
and assigned it a separate docket number, namely 85-1, since the issue
as to this amount was different from the other issues in the appeal.
The Agency agreed with the State's contention as to the $989.00, and
withdrew this amount of the disallowance. The Board then closed Board
Docket No. 85-1 and proceeded with 84-227 in the reduced amount of
$78,076.(2) Both parties agreed that this balance was subject to
Decision No. 521 (New York State Department of Social Services, March 6,
1984), and requested the Board to issue a summary decision based upon
that decision. /1/
The State further admitted that there were no distinguishing facts
regarding the claims in this case, or their filing, from Decision No.
521, and submitted no new argument why the State thought Decision No.
521 was wrong. /2/
We therefore conclude that the claims here are barred by statutory and
regulatory filing limitations and sustain the disallowance of $76,089
based on Decision No. 521, which we incorporate herein. /1/ In its
December 20, 1984 letter to the Board, the State referred to the
citation by the Agency of "appropriation restrictions imposed by
Congress." The State's position was that if this language was intended
to refer to the one-year claiming limitation in appropriation statutes,
the Board had ruled against the Agency in Decision No. 576 (Joint
Consideration - Timely Filing of Claims, October 5, 1984). The Agency
cited statutes and regulations which have no connection with the
one-year appropriation restriction as authority for the disallowance.
Decision No. 521, upon which we rely here, also was not based upon the
one-year appropriation restrictions. /2/ In its December 20,
1984 letter the State asked the record to indicate that the State filed
the claims here under Title IV-E of the Social Security Act, as Foster
Care and Adoption Assistance expenditures and not under Title IV-A of
the Act as stated in the disallowance letters. The State added that
this was not a distinguishing fact.
JUNE 06, 1985