New York State Department of Social Services, DAB No. 829 (1987)

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

DATE: January 20, 1987

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