Department of Health and Human Services
DEPARTMENTAL APPEALS BOARD
Appellate Division
SUBJECT: New York State Department of Social Services
DATE: April 24, 1995
Docket No. A-95-94
Decision No. 1513
DECISION
The New York State Department of Social Services (New York) appealed a
determination by the Administration for Children and Families (ACF)
disallowing $54,999,244.00 in claims for federal funds under title IV-E
of the Social Security Act. 1/ Title IV-E provides funding for foster
care maintenance payments on behalf of children who would otherwise be
eligible for title IV-A (Aid to Families with Dependent Children). This
case involves claims for the administrative costs incurred for
protective services provided to children for whom there was reasonable
cause to suspect abuse or maltreatment.
New York claimed these administrative costs pursuant to a proposed
amendment to its cost allocation plan (CAP). The activities for which
New York sought reimbursement pursuant to this amendment were divided
into ten categories of activities typically performed by Child
Protective Services workers. 2/ New York claimed these costs for all
children who were the subject of a State Central Registry (SCR) abuse or
maltreatment report and who had not been determined to be ineligible for
title IV-E.
Prior to New York's claiming these funds, this Department's Division of
Cost Allocation (DCA) had partially approved and partially denied the
proposed CAP amendment relied on by New York for its claim. DCA's
ruling on that proposed amendment and ACF's prior disallowances of
claims pursuant to that proposed amendment were considered by the Board
in New York State Dept. of Social Services, DAB No. 1428 (1993). The
Board has also issued summary decisionS based on DAB No. 1428, affirming
additional disallowances of title IV-E reimbursement for protective
services. New York State Dept. of Social Services, DAB Nos. 1442
(1993), 1470 (1994), and 1503 (1994). As to this disallowance, New York
requested another summary decision upholding this disallowance based on
DAB No. 1428. Notice of Appeal dated March 27, 1995. ACF consented to
the issuance of a summary decision. ACF letter of April 11, 1995.
In DAB No. 1428, the Board upheld DCA's determination that four of the
protective services activities described by the CAP amendment were not
allowable title IV-E activities. The Board concluded that these four
activities were not identified in the regulations as allowable
administrative activities and were not activities which were unique to
title IV-E or which furthered its specific, limited purposes. DCA found
that the remaining six activities were allocable to title IV-E if
performed on behalf of candidates for title IV-E. As to these six
activities, the Board upheld ACF's determination that New York's
characterization of all children who were the subject of an SCR report
as title IV-E candidates was not consistent with title IV-E, the
regulations and ACF's policy announcement, ACYF-PA-87-05. Because ACF
was willing to reduce the disallowances by the amount of costs that New
York could document in a manner consistent with DCA's decision and the
requirements of applicable authorities including ACYF-PA- 87-05, the
Board remanded that case to ACF to make that determination.
Conclusion
Accordingly, based on the analysis in DAB No. 1428 which we incorporate
in its entirety here, we uphold ACF's disallowance in principle. We
remand the disallowance to ACF so that it can determine which portion of
New York's claims can be documented in a manner consistent with DCA's
decision and the requirements of applicable authorities including
ACYF-PA-87-05. If New York is dissatisfied with ACF's determination as
to allowable administrative expenses, New York may appeal ACF's
determination to the Board within 30 days of its issuance.
__________________________ Judith A. Ballard
___________________________ Norval D. (John)
Settle
___________________________ Donald F.
Garrett Presiding Board Member
1. New York appealed from ACF's letter of February 16, 1995
disallowing $58,251,933 in title IV-E funds. The disallowance was
composed of several categories of title IV-E costs: foster care
maintenance payments made to New York City (NYC) kinship foster homes;
administrative costs for preventive and protective services; and
administrative costs incurred in the development of NYC's services
payment plan system. This decision concerns only one portion of the
February 16, 1995 disallowance: administrative costs for protective
services provided by local Social Services Districts in the amount of
$54,999,244. The portions of the disallowance concerning maintenance
payments, preventive services costs, and the development of NYC's
services payment plan system have been assigned different DAB docket
numbers and will be considered separately.
2. These activities were processing State Central Registry forms;
determining the nature, extent, and cause of injuries; risk assessment;
arranging for other services; arranging for foster care; supervisory
consultation/conference; family court proceedings; preparing and
maintaining Welfare Management System/Child Care Review Service
documentation; preparing and maintaining case record documentation; and
case management/monitoring