GAB Decision 469
Docket Nos. 83-117, 83-167
October 13, 1983
California Department of Social Services;
Garrett, Donald; Ford, Cecilia Teitz, Alexander
The California Department of Social Services appealed two
disallowances by the Regional Program Director, Administration for
Children, Youth and Families, Office of Human Development Services, of
federal financial participation in the amounts of $11,697,694 (Docket
No. 83-117) and $861,707 (Docket No. 83-167) claimed under title IV-A of
the Social Security Act (Act) as administrative expenses of the
AFDC-foster care program. The claims were disallowed on the ground that
the expenditures were for social services and were therefore not
allowable under section 403(a) of the Act. /1/ That section prohibits
payment under title IV-A "with respect to amounts expended in connection
with the provision of any services described in Section 2002(a)(1) of .
. . (the) Act. . ." Section 2002(a)(1) refers to, inter alia, services
for children in foster care.
In its brief filed in the two appeals, which were considered together
at the State's request, the State indicated that these appeals presented
the same issue as was addressed by the Board in two prior decisions
(Joint Consideration: Reimbursement of Foster Care Services, Decision
No. 337, June 30, 1982; and New York State Department of Social
Services, Decision No. 449, July 29, 1983). According to the State, if
the Board followed the precedent established in those decisions, it
would necessarily uphold the disallowances in the two appeals now before
the Board. In particular, the State stated that it had determined that
the Board's conclusion in those decisions that social services required
by title IV-A are not properly chargeable to title IV-A governed in the
instant appeals. The State concluded that since its arguments, if fully
presented, (2) would be those which were presented by the appellants in
Decision Nos. 337 and 449, and rejected by the Board, "a further
elaboration" of its position "would be futile." (Brief dated
August 29,
1983, p. 5)
The State did not distinguish the instant appeals in any respect from
Decision Nos. 337 and 449 and advanced no reason why the Board should
not follow the precedent established in those decisions. Accordingly,
based ons the State's position that those decisions govern here, we
sustain the disallowances. /1/ The $861,707 involved in Docket No.
83-167 was originally deferred on the additional ground that the
claim was untimely. (State's brief dated August 29, 1983, p. 1) However,
the notice of disallowance subsequently issued in that case did not
raise this issue, and in any event the Agency now concedes that the
claim "should be deemed to have been filed in a timely fashion . . . ."
(Agency's memorandum dated September 30, 1983, p. 1)
NOVEMBER 14, 1984