Illinois Department of Public Aid, QC No. 63 (1994)

Department of Health and Human Services

Departmental Appeals Board

AFDC QUALITY CONTROL REVIEW PANEL

SUBJECT:  Illinois Department of Public Aid
Docket Nos. A-94-046, A-94-047
Decision No. QC 63

DATE:  March 23 1994

DECISION

The Illinois Department of Public Aid (Illinois) appealed
two quality control (QC) review determinations of the
Regional Administrator of the Administration for Children
and Families (ACF).  The Quality Control Review Panel
(Panel) consolidated these two cases, as the appeal in
Docket No. A-94-047 concerned the same legal and factual
issues as in Docket No. A-94-046.   1/  In its appeal
requests, Illinois acknowledged that the issues in these
two appeals were the same ones decided by the Panel in
Illinois Dept. of Public Aid, DAB QC48 (1993), which
resolved three earlier Illinois appeals in Docket Nos.
A-92-202, A-93-019, and A-93-101. 

The central issue in all five of these Illinois appeals
is whether Illinois improperly calculated the initial
payment amount of Aid to Families with Dependent Children
(AFDC).  Illinois contended that it was proper to prorate
the recipients' initial AFDC payment from the date of the
recipients' approval for AFDC until the day before their
cases were placed on Illinois' regular automated payment
roll (the initial prorated entitlement or IPE period)
where the IPE period was longer than one fiscal month. 
Illinois contended further that its IPE methodology was
consistent with the Social Security Act (Act), federal
regulations, the AFDC Quality Control Manual (QCM), and
its own State plan.  In all five appeals, ACF contended
that instead of paying for the month of application and
the next fiscal month (which made up the IPE period) on a
prorated basis, Illinois should have prorated that part
of the payment which consisted of the days remaining in
the application month and then paid a flat grant for the
part of the payment which represented the next fiscal
month.  In Decision No. QC48, the Panel sustained ACF's
determination regarding the calculation of the IPE
payment.   2/

Regarding the appeals in question here, in Docket No.
A-94-046, State QC reviewed a $357.00 payment made during
the April 1992 review month.  State QC found that the
recipient was underpaid $9.00, stating that the recipient
should have been paid $366.00, covering 41 days (the
entire IPE period).  Federal QC review found the April
1992 review month payment of $89.00 to be correct. 
Federal QC determined that the April review month
consisted of ten days only (the number of days remaining
in the application month following the recipient's
approval for AFDC payment), not the 41 days alleged by
State QC review.  In Docket No. A-94-047, State QC
reviewed a $366.00 payment made during the July 1992
review month.  State QC review found that the recipient
was overpaid $310.00 due to unreported child support
income.  Federal QC review found that the recipient was
overpaid $70.00, having determined that the July review
month consisted of ten days only (the number of days
remaining in the application month following the
recipient's approval for AFDC payment), not the 41 days
(the entire IPE period) alleged by State QC review.

In its March 18, 1994 reply, Illinois acknowledged again
that the issues in Docket Nos. A-94-046 and A-94-047 are
the same issues the Panel decided in Decision No. QC48. 
Illinois acknowledged further that its appeals in Docket
Nos. A-94-046 and A-94-047 were submitted only to
preserve Illinois' appeal rights.  We conclude, in the
absence of any new argument or evidence in support of
Illinois' position regarding the calculation of the IPE
payments in these appeals, and for the reasons discussed
in Decision No. QC48 (which we incorporate herein by
reference), that Illinois incorrectly calculated the
payment for the IPE period in Docket Nos. A-94-046 and A-
94-047.  Illinois should have prorated that part of the
IPE payment which consisted of the days remaining in the
application month and then paid a flat grant for that
part of the payment which represented the next fiscal
month.

Accordingly, we uphold the ACF Regional Administrator's
determination in both appeals.


                                     
    Peggy McFadden-Elmore


                                     
     Carolyn Reines-Graubard


                                     
     Maxine Winerman


* * * Footnotes * * *

         1.  Initially, Illinois' appeal of ACF's
determination in Docket No. A-94-046 contained an issue
concerning timeliness.  However, in Illinois' March 18,
1994 reply, Illinois withdrew its appeal of the
timeliness issue, stating that the issue was not properly
before the Panel. 
         2.  The Panel remanded Docket No. A-93-101 to
ACF to determine whether income received by the recipient
during the review month should be applied in full or in
prorated part only against the AFDC payment for which the
recipient was eligible.  This question was not raised by
the parties in Docket Nos. A-94-046 and A-94-047.
 

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