Pennsylvania Department of Public Welfare, DAB No. 1392 (1993)

  Department of Health and Human Services

DEPARTMENTAL APPEALS BOARD

Appellate Division

SUBJECT: Pennsylvania Department of Public Welfare

DATE:  February 23, 1993
Docket No. A-91-65
Decision No. 1392

DECISION

The Pennsylvania Department of Public Welfare (Pennsylvania) appealed a
determination by the Administration for Children and Families (ACF)
disallowing $5,146,935 in federal financial participation (FFP) claimed
by Pennsylvania under title IV-E of the Social Security Act (Act). 1/
The disallowed funding was claimed for foster care maintenance payments
made by Philadelphia County (Philadelphia) in fiscal year 1987.  ACF
found that certain sampled payments made by Philadelphia in that period
did not meet the requirements for title IV-E funding on one or more
grounds, and extrapolated the results of the sample to all payments
made.  Pennsylvania disputed ACF's findings of ineligibility for 60 out
of a total of 266 sample payments.  (Pennsylvania did not challenge the
statistical sampling methodology used by ACF, however.  Pennsylvania's
brief dated 1/13/92, at 2.)  During the proceedings before the Board,
the number of disputed cases was reduced to 50 since Pennsylvania
conceded that four of these payments (sample nos. 9, 73, 188 and 233)
were ineligible as found by ACF, while ACF conceded that six payments
(sample nos. 57, 69, 149, 195, 224 and 231) contested by Pennsylvania
were eligible.

The principal issues raised by the appeal are (1) whether ACF properly
found that certain children were removed from their homes pursuant to
voluntary placement agreements (VPAs) within the meaning of section
472(a)(1) of the Act and thus were ineligible for title IV-E funding
because Pennsylvania's title IV-E plan did not provide for payments to
such children; and (2) whether ACF properly found that, in issuing
orders removing certain children from home, the court did not make the
determination required by section 472(a)(1) of the Act that it was
contrary to the child's welfare to remain in the home.

For the reasons discussed below, we conclude that, in the one case
(sample no. 155) in which the VPA issue was the sole basis for ACF's
finding of ineligibility, the child was not removed "pursuant to a
voluntary placement agreement" within the meaning of the Act, although
she was initially removed voluntarily from her home.  Furthermore, we
affirm ACF's finding that the court did not make the requisite "contrary
to the welfare" determinations when it issued the removal orders, in all
cases found ineligible by ACF on this basis.  In addition, we conclude
that ACF correctly found that all of the remaining cases disputed by
Pennsylvania were ineligible on some other ground.  Accordingly, we
uphold the disallowance in the amount attributable to 49 of the 50
disputed payments, and reverse the disallowance in the amount
attributable to the payment in sample no. 155.

Below, we first describe the relevant statutory authority for the title
IV-E program.  We proceed to discuss the two principal issues identified
above, and finally discuss the remaining issues in the case.

Relevant Statutory Authority

Under title IV-E of the Act, federal funding is available for foster
care maintenance payments for a child removed from the home of a
relative if certain requirements are met.  Under section 472(a)(1), the
child's removal from home must be --

 pursuant to a voluntary placement agreement entered into by the
 child's parent or legal guardian, or . . . the result of a
 judicial determination to the effect that continuation therein
 would be contrary to the welfare of such child and (effective
 October 1, 1983) that reasonable efforts of the type described
 in section 471(a)(15) have been made; . . . .

Section 471(a)(15) requires that a state plan under title IV-E provide
that --

 in each case, reasonable efforts will be made (A) prior to the
 placement of a child in foster care, to prevent or eliminate the
 need for removal of the child from his home, . . . .

The requirement for a judicial determination to the effect that
continuation of the child in the home would be "contrary to the welfare
of such child" was continued from the foster care program previously
funded under title IV-A of the Act.  The "reasonable efforts"
requirement was added when the foster care program was transferred to a
new title IV-E by the Adoption Assistance and Child Welfare Act of 1980,
Public Law 96-272.  (The reasonable efforts requirement was not
effective until October 1, 1983, however.)  The provisions relating to
funding for a child removed from home pursuant to a VPA were also added
by Public Law 96-272.  Prior to the enactment of Public Law 96-272,
funding was available only for children removed pursuant to a judicial
determination.

Public Law 96-272 also provides for title IV-E funding for children
removed voluntarily under certain limited circumstances.  Section
102(d)(1) of Public Law 96-272, which was not codified as part of title
IV-E, provides:

 For purposes of section 472 of the Social Security Act, a child
 who was voluntarily removed from the home of a relative and who
 had a judicial determination prior to October 1, 1978 to the
 effect that continuation therein would be contrary to the
 welfare of such child, shall be deemed to have been so removed
 as a result of such judicial determination. . . .

A state wishing to claim title IV-E funding for children removed from
home pursuant to a VPA must provide in its title IV-E plan that payments
will be made on behalf of such children.  Sections 471(a)(1) and
472(a)(1) of the Act.

Section 472(f) of the Act defines the term "voluntary placement" as--

 an out-of-home placement of a minor, by or with participation of
 a State agency, after the parents or guardians of the minor have
 requested the assistance of the agency and signed a voluntary
 placement agreement.

The same section also defines the term "voluntary placement agreement"
as --

 a written agreement binding on the parties to the agreement,
 between the State agency, any other agency acting on its behalf,
 and the parents or guardians of a minor child which specifies,
 at a minimum, the legal status of the child and the rights and
 obligations of the parents or guardians, the child, and the
 agency while the child is in placement.

Finally, section 472(e) prohibits federal funding for foster care
maintenance payments --

 in the case of any child who was removed from his or her home
 pursuant to a voluntary placement agreement . . . and has
 remained in voluntary placement for a period in excess of 180
 days, unless there has been a judicial determination by a court
 of competent jurisdiction (within the first 180 days of such
 placement) to the effect that such placement is in the best
 interests of the child.

Removal Pursuant to VPAs or Court Orders

ACF found multiple payments ineligible on the ground that the children
were removed from their homes pursuant to VPAs and that Pennsylvania's
title IV-E plan in effect during the fiscal year in question here did
not authorize payments for such children. 2/  Pennsylvania did not
dispute that its title IV-E plan for the relevant period did not
authorize payments for children removed pursuant to VPAs, nor did
Pennsylvania dispute that there were nominally VPAs in these cases.
However, Pennsylvania took the position that the children were not
removed pursuant to VPAs but by later judicial determinations and were
therefore covered by its title IV-E plan.

According to Pennsylvania, Philadelphia removed the children from their
homes using a "hybrid system" of VPAs and court orders in which the VPAs
were "ancillary" to the court order process and functioned merely to
insulate Philadelphia from civil liability for the child's removal
pending issuance of the court order.  Pennsylvania brief dated 1/13/92
at 3.  Pennsylvania asserted that when Philadelphia wished to remove a
child from home, it asked the parents to sign a VPA which was effective
for only 30 days, in accordance with state regulations issued October 9,
1982 providing that "[p]lacement of a child may not extend beyond 30
days unless a court order has been entered pursuant to the Juvenile Act
. . . ."  Pennsylvania Appeal File (A.F.) Exhibit (Ex.) 4, at 4-1-1.
Pennsylvania further asserted that, contemporaneously with the execution
of a VPA, the social worker prepared a worksheet and referred the case
to the court unit.  According to Pennsylvania, a petition for a hearing
was then filed by the court unit and a hearing before the court was
scheduled, usually for a date within 30 days of the date of the child's
physical removal from home.

Pennsylvania asserted that, under its system, the court order was the
only legal authority for a child's placement beyond 30 days. 3/  Thus,
in Pennsylvania's view, the children should be considered as having been
removed from their homes pursuant to a judicial determination
notwithstanding the earlier VPA.  Pennsylvania stated that, consistent
with this view of the case, it had claimed federal funding only from the
date of the court order.

As indicated previously, there is only one case (sample no. 155) in
which the VPA issue is dispositive.  We conclude that, under the system
used by Philadelphia, this child, although initially removed voluntarily
from her home, was nevertheless removed as the result of a judicial
determination, within the meaning of section 472(a)(1) of the Act.  Our
conclusion rests primarily upon the following factors:

     o   Although the child was initially removed from home pursuant to
     what was nominally a VPA, that document was not the type of VPA
     contemplated by the Act.  Section 472(e) of the Act contemplates
     that a VPA may substitute for a judicial determination removing a
     child for up to 180 days, at which time a court order is required
     to continue the child in placement.  In contrast, here the VPA
     expressly stated, in accordance with the applicable state
     regulation, that it was "valid only for thirty days from the date
     of placement" and was not renewable.  A.F. Ex. 11, at 11-18-2
     (emphasis in original).  The VPA also provided that the
     Philadelphia Department of Public Welfare would file a petition for
     a court order within 24 hours of the placement date (id. at
     11-18-3), and stated that "[i]f the child is still in care as of
     the 30th day, the court hearing will be held on day 31."  Id. at
     11-18-2.  Thus, Pennsylvania viewed the VPA as only an interim
     measure prior to issuance of a court order no later than 31 days
     from the date of placement. 4/

     o  The court order in this case contains express determinations
     that continuation in the home would be contrary to the child's
     welfare and that reasonable efforts to keep the child in the home
     were not possible due to the emergency nature of the placement. 5/
     A.F. Ex. 11, at 11-18-7.  Thus, the order satisfied the
     requirements in section 472(a)(1) of the Act for a judicial
     determination removing the child from home.  As noted above,
     section 472(e) of the Act requires that, in those cases where a
     child has been removed pursuant to a VPA rather than a court order,
     a court order be issued within 180 days of a child's placement in
     order to continue the placement.  However, that order need only
     contain a determination that placement is in the child's best
     interests, a determination which ACF has deemed tantamount to a
     contrary to the welfare determination. 6/  The fact that a
     reasonable efforts determination was also made in this case
     indicates that Philadelphia did not intend to comply with section
     472(e) but rather with section 472(a)(1).

     o  The court order was issued within six months of the child's
     physical removal from home.  ACF acknowledged that the judicial
     determination required by section 472(a)(1) is timely if the
     petition for the order is filed within six months of the child's
     physical removal from the home.  Transcript of 8/24/92 hearing
     (Tr.) at 149, 153.  Here, the court order itself was issued less
     than two months after the child was removed from home.  Thus, there
     was a judicial determination in this case which fully satisfied the
     requirements of section 472(a)(1).

     o  Consistent with its view that the VPA was merely an interim
     measure prior to the issuance of a court order, Pennsylvania
     claimed FFP only in payments made for the child following the
     issuance of the court order.

ACF did not advance any reason, nor can we find any, why the denial of
FFP under these circumstances would further the purposes of the Act.
Thus, ACF's determination simply penalizes Pennsylvania for having an
interim measure prior to the issuance of a court order which met the
requirements of section 472(a)(1) of the Act.

ACF asserted, however, that section 472(a) of the Act "gave Pennsylvania
full notice that removals pursuant to voluntary placement agreements and
those resulting from judicial determinations were separate and
distinct."  ACF brief dated 11/16/92 at 5-6.  ACF argued that there was
"nothing in the statute that indicates that a voluntary removal can
later be `converted' into a judicial removal" for purposes of title IV-E
funding.  Id. at 6.  However, Pennsylvania did not contend that a
voluntary removal was converted into a judicial removal, but rather that
the VPA was an integral part of the process leading to the issuance of a
court order removing the child.  As just discussed, the court order did
not simply affirm the VPA; it made the affirmative findings required by
the Act for a court-ordered removal.


ACF also contended that, in arguing that its system was used to insulate
Philadelphia from civil liability pending the issuance of a court order,
Pennsylvania in effect admitted that at the time the children were
removed from their homes, the only legal basis for that removal was the
VPA.  ACF asserted that the court orders provided a legal basis for
continuing the children in their placements after the 30-day VPAs
expired, and did not alter the fact that the VPAs were the legal basis
for removing the children from their homes.  This argument ignores the
fact that the order in sample no. 155 did not expressly approve the
child's continued placement pursuant to the VPA.  Indeed, the VPA was no
longer the authority for the child's placement at the time the order was
issued because the VPA had expired.  Moreover, once the VPA expired, the
terms of the placement were no longer those agreed to in the VPA but
rather those specified in the order. 7/  Accordingly, the order cannot
reasonably be viewed as continuing the placement made by the VPA.

ACF argued further that this case could not properly be viewed as
involving a removal pursuant to a judicial determination because
Pennsylvania law provides specific procedures for court-ordered
placements which were not followed in this case.  ACF cited in
particular the requirements at Pa.C.S. .. 6331, 6332, 6335, and 6341
that a petition be filed with the court within 24 hours after the child
is placed in shelter care, that a detention hearing be held within 72
hours after such placement, and that a hearing to adjudicate the child's
dependency be held within 10 days of the filing of the petition, with
another hearing to place the child in foster care within 20 days (if
this was not done at the dependency hearing).  Pennsylvania responded
that the procedures referred to by ACF applied only to emergency
placements and not to this case.  However, sample no. 155 involves an
emergency placement since the court order states that reasonable efforts
were not made to prevent the child's removal because of "the emergency
nature of the placement."   A.F. Ex. 11, at 11-18-7.  Nevertheless, the
fact that Pennsylvania may not have followed mandated State procedures
for emergency placements does not undercut a determination that the
court order was sufficient for purposes of the federal program
requirements at issue. 8/

ACF argued in addition that the Board had decided the issue presented
here in its favor in DAB No. 1278.  ACF cited the Board's statement in
that decision to the effect that the only basis for title IV-E funding
for children removed from home pursuant to a VPA before such funding was
authorized by law and included in a state's title IV-E plan was section
102(d)(1) of Public Law 96-262.  This section, which specifically
provides for funding in the case of such children if a court made a
contrary to the welfare determination prior to October 1, 1978, does not
apply to sample no. 155, in which the court order was issued in 1987.
See A.F. Ex. 11, at 11-18-7.  Nevertheless, DAB No. 1278 is not
dispositive here.  As the Board noted in its Ruling on Request for
Hearing dated 6/19/92, the Board's statement in DAB No. 1278 was made in
the face of Pennsylvania's concession that the specific case in dispute
was ineligible and without the benefit of Pennsylvania's arguments on
this issue.  Pennsylvania did not argue in DAB No. 1278, as it did here,
that the VPA was an intermediate step in the process of the child's
removal by court order.

Accordingly, we conclude that Pennsylvania's claim for federal funding
related to foster care maintenance payments made for the child in sample
no. 155 following the issuance of the court order was proper. 9/

Contrary to the Welfare Determinations

ACF found most of the payments raising the VPA issue, as well as other
payments, ineligible on the ground that, in issuing the orders removing
the children from their homes, the court did not make a determination
that continuation in the home was contrary to the child's welfare, as
required by section 472 of the Act. 10/

Pennsylvania admitted that the orders did not contain express contrary
to the welfare determinations.  However, Pennsylvania argued with
respect to most of the cases that the requisite determination was made
because, in issuing the removal order, the court relied on one of
several provisions of Pennsylvania's Juvenile Act which Pennsylvania
said permitted a child's removal from home only if the court determined
that removal from home was in the child's best interest.  Pennsylvania
cited 42 Pa.C.S. . 6351 (1982) or the version of this provision enacted
in 1972 as the applicable provision in most cases.  For those cases in
which the order was issued prior to 1972, Pennsylvania cited 11 Pa.C.S.
. 250.  In addition, for those cases in which a temporary restraining
order rather than an order of disposition placing the child was issued,
Pennsylvania cited 42 Pa.C.S. . 6325.

As discussed below, we conclude that two of the applicable provisions
did not clearly require a contrary to the welfare determination.  We
further conclude that there is insufficient evidence that the court
relied on the other provision in issuing the orders in question.
Accordingly, we reject Pennsylvania's argument that contrary to the
welfare determinations were made notwithstanding the lack of an express
determination in the orders.

This Board has previously considered the question of how a state may
establish that the judicial determination required by section 472 of the
Act has been made in the absence of any language in the court order
itself which satisfies the statutory requirements.  See, e.g., Georgia
Dept. of Human Resources, DAB No. 1355 (1992); West Virginia Dept. of
Health and Human Services, DAB No. 1257 (1991).  The Board noted in
those decisions that ACF policy, set out in ACYF-PIQ-86-02, dated May 8,
1986,  provided that a state could establish that the requisite
determination was made by showing that the court order was "expressly
based" on a "clear and unequivocal State law" which "requires that
removal may only be based on a determination that remaining in the home
would be contrary to the child's welfare."  (Emphasis in original.)  The
Board found in DAB No. 1257 that a court order could be "expressly
based" on a state law within the meaning of ACYF-PIQ-86-02 even if it
did not specifically cite the state law, as long as there was other
evidence in the order that the court intended to rely on that law.

ACF did not dispute that 42 Pa.C.S. . 6351 in effect required that the
court make a contrary to the welfare determination in order to remove a
child from home (but, as discussed later, ACF contended that the court
orders which Pennsylvania argued were issued in reliance on this
provision were not "expressly based" on it).  However, ACF challenged
Pennsylvania's assertion that the other two statutory provisions cited
by Pennsylvania required the court to make a best interest/contrary to
the welfare determination.  As discussed below, we agree with ACF that
neither 42 Pa.C.S. . 6325 nor 11 Pa.C.S. . 250 clearly required such a
determination.

The Board has previously held that reliance on a state statute which
requires the court to consider the interests of others in addition to
the interest of the child in determining whether to remove a child from
home does not satisfy the requirement for a contrary to the welfare
determination, which addresses only the child's welfare.  DAB No. 1257
at 42.  Based on that holding, we conclude that 42 Pa.C.S. . 6325 does
not require a contrary to the welfare determination since it states in
pertinent part that a child shall not be placed in shelter care prior to
a hearing on the court petition unless required "to protect the person
or property of others or of the child . . . ."  ACF brief dated
11/16/92, enclosure (emphasis added).  Section 250 of 11 Pa.C.S. states
in pertinent part that the judge shall "determine whether the best
interests and welfare of a child and the State require the care,
guidance and control of such child."  Pennsylvania Response to Summary
of Challenged Sample Numbers, dated 1/12/93, Ex. 2 (emphasis added).
This provision could be read to require a balancing of the child's and
the State's interests which would not necessarily give the child's
interests priority.  Thus, neither provision clearly requires the court
to make a contrary to the welfare determination before removing a child
from home. 11/

Since it is undisputed that 42 Pa.C.S. . 6351 requires a contrary to the
welfare determination, the question remains whether the court relied on
this provision in issuing the orders to which Pennsylvania said it
applied.  As discussed below, we conclude that the evidence offered by
Pennsylvania does not establish the court's reliance on this provision.

Pennsylvania contended that, in several cases, the court's reliance on
the Juvenile Act was established by the testimony of the judge who
issued the removal order that he made a determination that foster care
was in the best interest of the child at the time he issued the order.
Pennsylvania further contended that the testimony of two judges that it
was the general procedure of the court to issue a removal order only if
the court made a best interests determination established that such a
determination was made by any judge who issued one of the orders in
question.  See Tr. at 11-13, 70-72. 12/  Pennsylvania contended,
moreover, that the fact that the petition in several of the cases
expressly referred to the Juvenile Act established that the court made a
contrary to the welfare determination in those cases.  In addition,
Pennsylvania argued that it was clear from the circumstances described
in the petition or in other documents in the child's case record (such
as the Information for Court Hearing or the VPA) that it was contrary to
the child's welfare to remain in the home, so that a determination to
this effect must have been made when the order was issued, as required
by the Juvenile Act.

Pennsylvania's reliance on the testimony of the judges is misplaced,
however.  In evaluating whether a contrary to the welfare determination
has been made, we proceed from the premise that "a court order would
ordinarily reflect any material findings made by the court."  DAB No.
1278 at 16.  A contrary to the welfare determination could be reflected
in a court order by use of the contrary to the welfare language (or the
equivalent best interest language), by a citation to a state statute
which unambiguously requires a contrary to the welfare determination, or
by a clear indication that the court relied on such a statute, such as
use of language which parallels the language of the statute.  The
absence of any such reference to the requisite determination in the
orders in question here thus raises a strong presumption that such a
determination was not made.  This presumption is not overcome by the
testimony of the judges who signed the orders because that testimony
does not indicate that the judges specifically recalled the individual
circumstances of the cases in question or that they could remember that
the general procedures were in fact followed in these particular cases.
13/  Testimony concerning procedures that were generally followed simply
cannot establish what the Act here requires:  evidence of a specific
finding by the court following evaluation of the facts of the individual
case.  Thus, even though we accept as credible the testimony of the
judges that they generally issued removal orders in reliance on
provisions of the Juvenile Act requiring a contrary to the welfare
determination, we cannot conclude based on their testimony that such a
determination was made in the cases in question.

We note that, while in DAB No. 1278 we relied on the testimony of a
judge to establish that a contrary to the welfare determination was
made, the case now before us is different.  In DAB No. 1278,
Pennsylvania contended that the judge's signature on a VPA below a
pre-printed line reading "REGISTERED IN THE COUNTY COURT OF PHILADELPHIA
JUVENILE DIVISION" constituted a contrary to the welfare determination.
Since a VPA is defined in section 472(f) of the Act as an agreement
"between the State agency . . . and the parents or guardians of a minor
child," the significance of the judge's signature on this document was
not apparent.  Under these circumstances, the Board accepted a judge's
testimony as to the meaning of his and other judge's signatures on VPAs,
stating that "[w]hen the meaning of a document is unclear on its face,
extrinsic evidence is properly considered to show what was intended."
DAB No. 1278, at 15.  Here, however, there was no ambiguity in the court
orders, which were complete on their face.  Thus, unlike the situation
in DAB No. 1278, Pennsylvania relied on the judges' testimony to
establish that the court made a contrary to the welfare determination
despite the fact that no such determination was reflected in the orders.
For the reasons discussed above, such testimony is unpersuasive.

Pennsylvania's position that a contrary to the welfare determination was
made where the petitions for the court orders expressly referred to the
Juvenile Act is also unfounded.  Some of the petitions in the cases as
to which Pennsylvania made this argument do not in fact contain any
mention of the Juvenile Act.  See, e.g., A.F. Ex. 11, at 11-3-6 (sample
no. 31).  While other petitions request that the child "be adjudicated
(adjudged) dependent under the Juvenile Act and committed to DPW" (see,
e.g., A.F. Ex. 11, at 11-1-6 (sample no. 11)), none of the court orders
expressly cite the petitions or incorporate them by reference.  In the
absence of any express reference in the order to section 6351 or to a
petition referring to this section, there is insufficient basis for
determining that the court followed this section in issuing the orders
in question (and thus made the findings contemplated by this section).
It follows from this that the mere description in a petition or other
document available to the court of circumstances based on which the
court could have determined that it was contrary to the child's welfare
to remain in the home is not a basis for finding that the court made
such a determination.  As ACF observed in PIQ-86-02, "the petition which
requests a hearing could not anticipate the findings and conclusions to
be made by the court at a time in the future and cannot be used in lieu
of the judicial determination."  ACYF-PIQ-86-02, at 5.  Furthermore, as
we observed elsewhere in this decision, the Act requires evidence of a
specific finding by the court that continuation in the home is contrary
to the child's welfare.  ACF has given the states substantial leeway
with respect to what constitutes adequate evidence of such a finding.
However, for the reasons discussed above, ACF reasonably determined that
a petition alone, regardless of its language, cannot establish that such
a finding was made.  We note, moreover, that as the connection between
the court order and the requisite judicial determination becomes more
attenuated, it becomes more difficult for the states and for ACF to
monitor compliance with the Act.  ACF could reasonably take this into
account in setting the policy of what type of evidence would be
acceptable. 14/

Pennsylvania also argued in one case (sample no. 128) that the VPA was
the type at issue in DAB No. 1278, and that, consistent with the Board's
holding in that decision, the judge's approval of the VPA constituted a
contrary to the welfare determination.  However, in DAB No. 1278, the
Board found that the judge's signature on the VPA signified that he had
made a contrary to the welfare determination.  Here, in contrast, there
is no judge's signature on the VPA.  Instead, there is a notation in the
child's case record that "[a]t a review of this placement agreement" the
judge "approved the agreement and ordered [the Department of Public
Welfare] to file a petition."  A.F. Ex. 11, at 11-14-1 and 11-14-2.
Accordingly, Pennsylvania's argument that sample no. 128 is controlled
by DAB No. 1278 has no merit.

We therefore conclude that ACF correctly found that, in those cases in
which the court order lacked an express contrary to the welfare
determination, no such determination was made.  As the Board noted with
respect to a similar conclusion in a prior decision, this conclusion is
not intended to indicate that the court's or the state agency's "actions
were unsound, but simply that [the state] failed to document that its
claims met the conditions Congress established as a prerequisite for
Title IV-E funding."  DAB No. 1355 at 10, citing DAB No. 1257.
Accordingly, title IV-E funding related to the cases which ACF found
ineligible on this basis is not available.

Miscellaneous Issues

1.  Reasonable Efforts Determination

ACF found one payment (sample no. 118) ineligible on the sole ground
that the reasonable efforts determination required by section 472 of the
Act was not made. 15/  In that case, the removal order was on a form
which included boxes the judge could check if he determined that (A)
"[r]easonable efforts were made . . . to prevent the placement of this
child," (B) "[r]easonable efforts were not made . . . ," or (C)
"[s]ervices were not offered in an effort to prevent the placement of
this child due to the emergency nature of the placement . . . ."  A.F.
Ex. 11, at 11-12-5.  Pennsylvania relied on the testimony of the judge
who signed the order that he had "heard facts which responded to the
question of `Were reasonable efforts made . . . to prevent placement of
this child?'," that he would not have signed the order if he intended to
check the second box, and that he had probably inadvertently failed to
check another box.  Tr. at 26-29.

This testimony is insufficient to establish that a reasonable efforts
determination was made.  Although the judge testified that he heard
facts regarding whether reasonable efforts were made, he was unable,
when asked, to testify as to the specific circumstances which
necessitated the child's removal from home.  Tr. at 26.  As indicated in
the preceding discussion of contrary to the welfare determinations,
where the testimony of the judge does not indicate that he specifically
recalled the individual circumstances of a case, there is no assurance
that he made the requisite determination in that case.  Moreover, the
failure of the judge to check one of the boxes with a pre-printed
reasonable efforts finding was obvious from the face of the order.
Thus, it would have been a simple matter for Pennsylvania to request
that the judge issue a corrected order before Pennsylvania determined
the child eligible for title IV-E payments.  Under these circumstances,
it is reasonable to require that the judge's testimony reflect his
recollection of the specific facts of the case in order to establish
that an inadvertent error was made nearly five years before his
testimony was given.  Accordingly, we conclude that ACF correctly found
sample no. 118 ineligible based on the lack of a reasonable efforts
determination.

2.  Unapproved Providers

ACF found two payments (sample nos. 151 and 223) ineligible on the sole
ground that the homes in which the children were placed were not
licensed by Pennsylvania as foster family homes or approved by
Pennsylvania as meeting its licensing standards for foster family homes.
Although Pennsylvania disputed ACF's finding of ineligibility, it
acknowledged that the Board should uphold ACF's finding based on its
holding in DAB No. 1278 that documentation similar to that submitted by
Pennsylvania here was insufficient to establish that the homes were
licensed or approved.  Accordingly, we conclude without further
discussion that the payments in question were ineligible. 16/

3.  Mother/Child Placements

ACF also found that two payments (sample nos. 89 and 121)  were
ineligible on the ground that the children, who were placed in foster
homes with their mothers, were not removed from the home of a relative,
as required by section 472(a) of the Act.  Pennsylvania disputed ACF's
position that title IV-E funds were unavailable for any children in
mother/infant placements, but acknowledged that the Board had decided
this issue in ACF's favor in DAB No. 1278.  Since Pennsylvania did not
offer any reason why the Board should reverse its holding in DAB No.
1278, we conclude without further discussion that the two payments
involving this issue were ineligible.

4.  Undated or Unsigned Court Orders

ACF also found several payments (sample nos. 10, 61, 68, 92, 250, and
262) ineligible on the ground that the court order was not dated or was
not signed by a judge or other court official.  Pennsylvania
subsequently submitted copies of the orders in some of these cases which
it contended met ACF's objections, and argued that the orders originally
submitted in the remaining cases were valid notwithstanding ACF's
objections.  However, we do not consider whether ACF properly found the
cases ineligible on the grounds specified here since we uphold ACF's
findings of ineligibility in these cases on the ground that there was no
contrary to the welfare determination.

Conclusion

Based on the foregoing, we uphold the amount of the disallowance which
is attributable to all of the 50 payments in dispute except sample no.
155, with respect to which we reverse the disallowance.  Accordingly,
ACF should reduce the disallowance by the amount attributable to sample
no. 155 as well as the six other cases which ACF conceded were eligible.


       ___________________________ M. Terry Johnson


       ___________________________ Norval D. (John)
       Settle


       ___________________________ Donald F.
       Garrett Presiding Board Member


1.  This determination was appealed in May 1991.  The Board subsequently
granted Pennsylvania's request for a stay of proceedings pending the
issuance of a decision in several other appeals then before the Board.
That decision was issued on October 21, 1991 (Pennsylvania Dept. of
Public Welfare, DAB No. 1278) and was affirmed on reconsideration on
December 24, 1991.  An appeal of DAB No. 1278 is pending in the U.S.
District Court for the Western District of Pennsylvania (Civil Action
No. 92-0337).

2.  ACF conceded, however, that section 102(d)(1) of Public Law 96-272
authorized title IV-E payments for those children initially removed from
their homes pursuant to VPAs where there was a petition for a court
order approving the placement prior to October 1, 1978.  ACF conceded
that the four cases (sample nos. 57, 69, 151 and 231) which involved
this situation should not have been found ineligible based on
Pennsylvania's use of a VPA; however, ACF maintained, and we agree, that
one of these cases (sample no. 151) was ineligible on the ground that
the provider was unapproved.

3.  Pennsylvania asserted that, in some cases, the court order was
retroactive to the date of the child's actual physical removal from
home, and argued that the order served as authority for the removal on
that basis as well.  ACF responded that Pennsylvania law did not
authorize a court to commit a child retroactively to the state agency.
We need not resolve this issue, however, since it involves an
alternative argument not necessary to our conclusion and, in any event,
the court order in sample no. 155 (the one case in which the VPA issue
was the sole basis for ACF's finding of ineligibility) was not
retroactive.

4.  The record for sample no. 155 does not show when the petition for a
court hearing was filed.  However, the case was referred to the court
unit two days after the child's placement for the preparation and filing
of a petition.  A.F. Ex. 11, at 11-18-4.  Although a hearing was not
held before the VPA expired as required by state regulation and the
terms of the VPA, a hearing was held and a court order issued less than
a month after the VPA expired.  Id. at 11-18-7.

5.  ACF's predecessor agency indicated in various policy issuances that
the requirement for a reasonable efforts determination would be
satisfied by such a determination.  See ACYF-IM-85-25, dated August 14,
1985; ACYF-PA-84-1, dated January 13, 1984.

6.  See ACYF-IM-85-25, dated August 14, 1985.

7.  The terms of the VPA included the parent's agreement that "[t]he
planning and return of the child shall be mutually agreed upon by the
Philadelphia [Department of Public Welfare] Children and Youth Agency
and me."  A.F. Ex. 11, at 11-18-3.

8.  A related argument advanced by ACF was that, because the court
orders were issued without the adjudication of the child's dependency
required by Pennsylvania law, the court orders were not effective to
remove the children from home but "were only a ratification of actions
already taken on an alternative legal basis," i.e., the VPA.  ACF brief
dated 11/16/92, at 5.  However, ACF did not include sample no. 155 in
its list of cases for which no adjudication of dependency was made.  See
ACF's brief dated 11/16/92 at 12, n. 9.

9.  This case is distinguishable from Georgia Dept. of Human Resources,
DAB No. 1355 (1992), in which the Board found that ACF correctly
disallowed Georgia's claim for foster care maintenance payments made for
periods after court orders were issued in cases where children entered
foster care through voluntary placements and Georgia did not have an
approved state plan provision covering such placements.  Unlike
Pennsylvania, Georgia never disputed that the children's removal from
home was pursuant to VPAs within the meaning of the Act.  Moreover, the
subsequent court orders relied on by Georgia merely ratified the VPAs
without making the requisite findings.   10.  The sample nos. in
question are 10, 11, 31, 44, 50, 55, 61, 68, 71, 85, 86, 92, 109, 112,
115, 128, 141, 148, 152, 161, 177, 182, 190, 197, 198, 205, 206, 221,
225, 242, 246, 247, 248, 250, 253, 258, 259, and 262.  In some of these
cases, the orders which Pennsylvania submitted to establish that a
contrary to the welfare determination was made were later determined by
Pennsylvania not to be the original removal orders.  Although
Pennsylvania did not specifically state that the original removal orders
might contain express contrary to the welfare determinations, it
requested an opportunity to provide these orders after the record in the
case had closed.  The Board ruled that it was inappropriate to re-open
the record to give Pennsylvania a further opportunity to produce the
original removal orders in these cases since Pennsylvania had the burden
of documenting its claims and had ample opportunity to provide such
documentation while the record was open.  Board's Ruling on Offer of
Additional Documentation, dated 1/29/93.  Accordingly, the evidence of
record does not establish that there was a contrary to the welfare
determination in the original removal orders in these cases.

The discussion in this section also applies to several cases (sample
nos. 20, 47, 120, 126, 135, and 217) which ACF found ineligible on the
ground that there was no original removal order in the child's case
record.  Pennsylvania subsequently furnished orders (or documents which
it alleged were orders) for these cases, but indicated that the cases
now raised the issue of whether a contrary to the welfare determination
was made when the order was issued.

11.  Even if 11 Pa.C.S. . 250 is interpreted to permit a child's removal
only if there are two separate determinations -- that removal was in the
child's best interest and that removal was in the State's best interest
-- it is not clear from the language of the two orders in question
(sample nos. 10 and 205) that the court was relying on this provision.
Although Pennsylvania asserted that the words "commit to DPW" in the
orders paralleled the language of section 250, that section does not in
fact specifically refer to DPW (the Department of Public Welfare).

12.  A third judge testified that each judge in the court's Family
Division, of which he was the Administrative Judge, "was conscientious
and did do what he or she was obliged to" in issuing removal orders.
Tr. at 66.

13.  The orders preceded the testimony by a minimum of four years, and
much longer than that in some cases.

14.  ACF took the position that the court did not rely on the Juvenile
Act in issuing the removal orders because the court did not comply with
all of the applicable requirements in that statute, including holding a
hearing within certain timeframes and making an adjudication of
dependency supported by detailed findings.  We need not address ACF's
contention in view of our conclusion that there is no affirmative basis
for finding that contrary to the welfare determinations were made.

15.  Several other payments (sample nos. 31, 109, 121, 182, 248, and
262) were also found ineligible for lack of a reasonable efforts
determination.  However, we need not reach the question whether such a
determination was in fact made since we conclude that these payments
were ineligible on other grounds.  We nevertheless note that
Pennsylvania argued that, even if there was no reasonable efforts
determination in the removal order in these cases, a reasonable efforts
determination might have been made after the issuance of the order.
Pennsylvania pointed out that ACF policy provided that the requirement
for a reasonable efforts determination would be satisfied if, subsequent
to the removal order, the court determined that reasonable efforts had
been made to reunite the child with his family.  This policy is stated
in ACYF-IM-83-25 (quoted in DAB No. 1257 at 29-30).  However,
Pennsylvania did not make this argument with respect to sample no. 118.

16.  Pennsylvania conceded in addition that sample nos. 120 and 135
(which were also ineligible because the orders lacked contrary to the
welfare determinations) were governed by the holding in DAB No. 1278
regarding unapproved providers.  Pennsylvania disputed that the holding
in DAB No. 1278 applied to sample no. 248, contending that the
documentation it submitted to establish that the provider in this case
was approved was different from the documentation considered in that
decision.  However, we do not address this contention since we uphold
ACF's finding of ineligibility in this case on the ground that there was
no contrary to the welfare