DEPARTMENTAL GRANT APPEALS BOARD
Department of Health and Human Services
SUBJECT: New York State Department of
Social Services
Docket No. 86-232
Decision No. 829
DECISION
The New York State Department of Social Services (State) appealed
a
decision by the Social Security Administration (Agency)
disallowing
$2,131,998 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, 1986. 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.
The State claimed that this disallowance included $1,582,074 which
were
not day care administrative costs and, therefore, mistakenly
disallowed.
During a January 14, 1987 telephone conference, the Agency
indicated
that it had reviewed the State's documentation on this issue
and
conceded that the State's position was correct. The parties then
agreed
that the correct amount in dispute was $549,924.
Arguing for reversal of the recalculated 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)(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. 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 revised disallowance of $549,924, based
on
Decision No. 759 (which we incorporate by reference here) and subject
to
reduction in accordance with Decision No. 759.
_____________________________________ Donald
F.
Garrett
_____________________________________ Norval
D.
(John) Settle
_____________________________________ Judith
A.
Ballard Presiding Board