DEPARTMENTAL GRANT APPEALS BOARD
Department of Health and Human Services
Subject: Attorney General of Texas Date: June 13, 1989 Docket No.
89-85 Decision No. 1059
DECISION
The Attorney General of Texas (Texas) appealed a decision by the Office
of Child Support Enforcement (OCSE) disallowing $66,459 in federal
financial participation claimed by Texas pursuant to Title IV-D of the
Social Security Act for the costs of operating its child support
enforcement program for the period of October 1988 through December
1988.
Arguing for a reversal of the disallowance, Texas asserted that the
interest earned on undistributed Title IV-D child support collections
was not "program income" within the meaning of 45 C.F.R. 304.50 because
(1) the interest accrued to entities other than the Title IV-D grantee,
the Attorney General; (2) the interest was earned by the activities of
the Treasurer of Texas; and (3) portions of the principal in the account
at issue were the property of Texas or were erroneously deposited in the
account and had nothing to do with the Title IV-D program.
Texas acknowledged that these identical issues were addressed and
decided in Attorney General of Texas, DAB No. 1048, May 9, 1989. Texas
agreed that the Board should issue a summary decision consistent with
the findings and determinations we made in DAB No. 1048. OCSE did not
object to this course of action.
We therefore sustain the disallowance of $66,459 based on DAB No. 1048,
the record of which we incorporate by reference. This disallowance is
subject to reduction if the State provides evidence, consistent with DAB
No. 1048, that interest actually earned was less than what OCSE
determined. Texas is given 60 days from the receipt of this decision,
or such longer period as OCSE determines appropriate, to develop and
submit its documentation to OCSE. If Texas disputes OCSE's further
determination, it may return to this Board within 30 days after
receiving that determination.
Norval D. (John) Settle
Cecilia Sparks Ford
Judith A. Ballard Presiding Board