Pennsylvania Department of Public Welfare, DAB No. 424 (1983)

GAB Decision 424
Docket No. 83-69

May 13, 1983

Pennsylvania Department of Public Welfare;
Ford, Cecilia; Settle, Norval Teitz, Alexander


The Pennsylvania Department of Public Welfare (State) appealed a
determination by the Regional Administrator, Social Security
Administration (Agency), to disallow $11,430 in federal financial
participation for welfare fraud prosecution costs charged to Title IV-A
of the Social Security Act for the quarter which ended December 31,
1982. The issue arose because the State entered into a cooperative
agreement with the Philadelphia District Attorney (D.A.) under which the
State agreed to partially reimburse the D.A.'s office for the costs of
prosecuting cases involving fraud in the Aid to Families with Dependent
Children program. The State then claimed the reimbursement as part of
its administrative costs of running its IV-A program. The Agency found
the costs to be a general government expense, unallowable under Action
Transmittal 78-8.

This issue was presented in another appeal previously filed by the
State with the Board. Pennsylvania Department of Public Welfare,
Decision No. 398, March 18, 1983. The State in the instant appeal
relies on the briefs submitted by it in the previous appeal, and the
Agency has agreed to rely on its earlier brief.

The conclusion of the Board in Decision No. 398 was that the costs
were unallowable as prosecution costs under Action Transmittal 78-8 and
as general government expenses under OMB Circular A-87.

No material facts are in dispute. Accordingly, based on the Board's
prior decision cited above, we sustain the disallowance.

JULY 07, 1984