New York State Department of Social Services, DAB No. 797

DEPARTMENTAL GRANT APPEALS BOARD

Department of Health and Human Services

SUBJECT:  New York State Department  of Social  Services

Docket No. 86-185
Decision No. 797

DATE:  October 21, 1986

DECISION

The New York State Department of Social Services (State) appealed a
decision by the Social Security Administration (Agency) disallowing
$1,079,174 in federal financial participation claimed by the State under
section 403(a) of the Social Security Act (Act) for the calendar quarter
ending March 31, 1986.  The Agency found that the costs at issue were
provided in connection with "social services" as defined at section
2002(a)(l) 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.

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)(3).

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 (although, as the Agency pointed out, the State did
not accurately describe the holding in that case).  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 $1,079,174, based on Decision
No. 759, which we incorporate by reference here.

 ________________________________ Donald F. Garrett

 ________________________________ Norval D. (John) Settle

 ________________________________ Judith A. Ballard Presiding
 Board