GAB Decision 627
March 4, 1985
Washington Department of Social and Health Services;
Ballard, Judith.; Garrett, Donald. Ford,Cecilia Sparks
Docket No. 83-256
The Health Care Financing Administration (Agency) disallowed $171,755
in federal financial participation claimed by the Washington Department
of Social and Health Services (State). The disallowed amount was
divided into three separate categories by the Agency: $12,768 which the
Agency said was incurred in federal fiscal year 1980 and not claimed
within two years of expenditure; $1,866, which the Agency said was
incurred in federal fiscal year 1978 and not claimed prior to May 15,
1981; and $157,121, which the Agency said was incurred prior to October
1, 1978 but which was claimed prior to May 15, 1981. By letter dated
January 31, 1985, the State conceded that its claim for $12,768 had not
been claimed prior to the two-year deadline, as the State had originally
alleged. The State raised no other arguments concerning the
disallowance of the $12,768. With respect to the two remaining
categories, an issue concerning whether the claims were barred by
certain appropriations provisions was decided in the State's favor in
Joint Consideration -- Timely Filing of Claims, Decision 576, October 5,
1984. The sole remaining issue is whether the State's claims were
timely filed under section 306 of Public Law 96-272. Based on a
preliminary review of the record, it appeared to the Board that the
$157,121 would clearly be payable since it relates to claims filed by
the May 15 deadline set pursuant to section 306. Further, it appeared
to the Board the $1,866 fell within the Agency's definition of an
adjustment to prior year costs and, therefore, was excepted from the
timely filing requirements of section 306. The Board issued an order,
dated October 19, 1984, directing the Agency to show cause why the
disallowance of these amounts should not be reversed based on the
analysis set out in the order. The Agency subsequently notified the
Board that, given the Board's conclusion in Decision No. 576, it did
not take issue with the conclusions and analyses in the order concerning
these amounts. (Response dated November 21, 1984 from Agency
counsel)(2)$%Accordingly, for the reasons stated in the order, which is
attached to this decision and made part of it, we conclude that the
$157,121 and $1,866 portions of the disallowance should be reversed. We
uphold the disallowance of the $12,768 based on the State's concession.
JUNE 06, 1985