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