New York State Department of Social Services, DAB No. 1068 (1989)

DEPARTMENTAL APPEALS BOARD

Department of Health and Human Services

SUBJECT: New York State DATE: July 12, 1989
Department of
Social Services
Docket No. 89-128
Decision No. 1068

DECISION

The New York State Department of Social Services (New York/State)
appealed a determination by the Family Support Administration (Agency)
disallowing $701,626 in federal financial participation (FFP) claimed by
the State under section 403(a) of the Social Security Act (Act). The
Agency found that the State had claimed FFP under Title IV-A of the Act
(Aid to Families with Dependent Children) for administrative costs
incurred in connection with the provision of child care, which is a
"social service" described in section 2002(a)(1) of the Act. With
certain exceptions, section 403(a)(3) prohibits reimbursing such costs
with Title IV-A funding.

The Board first addressed these issues in a series of appeals by the
State which resulted in New York State Dept. of Social Services, DAB No.
759 (1986). There, the Board upheld the disallowances in general but
remanded for two purposes: (1) to permit the State an opportunity to
document to what extent the costs fell within one of the exceptions to
the section 403(a)(3) prohibition (for costs incurred in connection with
a Community Work Experience Program); and (2) to permit the Agency to
consider the State's argument that some of the costs were allowable
because they were associated with child care paid by Title IV-A as an
"expense incidental to employment" and the State to show to what extent
the costs related to such child care.

As a result of the parties inability to reach a satisfactory resolution
on remand, the Board issued New York State Dept. of Social Services, DAB
No. 932 (1988). There, we affirmed our holding in DAB No. 759. We
upheld the disallowances, first addressed in DAB No. 759, except to the
degree that New York was able to meet its burden to show to what extent
the costs were within three areas where the Agency agreed to review
further documentation.

New York indicated that the current appeal contains "the identical
issues of fact and law" present in DAB No. 932. Consequently, New York
asked that we issue a summary decision based on the rationale of DAB No.
932. The Agency agreed with the State's request.

We therefore sustain the disallowance of $701,626 based on DAB No. 932,
which we incorporate by reference here.

Donald F. Garrett

Norval D. (John) Settle

Judith A. Ballard Presiding Board