New York State Department of Social Services, DAB No. 928 (1987)

DEPARTMENTAL GRANT APPEALS BOARD

Department of Health and Human Services

SUBJECT:  New York State Department of Social Services

Docket No. 87-202
Decision No. 928

DATE:  December 22,  1987

DECISION

The New York State Department of Social Services (State) appealed a
decision by the Family Support Administration (Agency) disallowing
$615,744 in federal financial participation claimed by the State under
section 403(a) of the Social Security Act (Act) for the calendar quarter
ending June 30, 1987.  The Agency found that the costs at issue were
provided in connection with "social services" as defined at section
2002(a)(1) of the Act.  The Agency based the disallowance on 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 asserted that the
disallowed costs were properly charged to Title IV-A based on an
approved cost allocation plan. New York also maintained that these
claims were allowable under statutory exceptions in section
403(a)(3)(C). Finally, 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).

The State acknowledged that these identical issues were addressed and
decided in New York State Department of Social Services, Decision No.
759, June 13, 1986.  The State requested that the Board issue a summary
decision consistent with the findings and determinations we made in
Decision No. 759.  The Agency did not object to this course of action.

We therefore sustain the disallowance of $615,744, based on Decision No.
759 (which we incorporate by reference.here) and subject to reduction in
accordance with Decision No. 759 and subsequent proceedings.

 


                          ________________________________ Donald F.
                          Garrett

 

                          ________________________________ Norval D.
                          (John) Settle

 

                          ________________________________ Judith A.
                          Ballard Presiding Board Member