DEPARTMENTAL GRANT APPEALS BOARD
Department of Health and Human Services
SUBJECT: New York State Department of Social Services
Docket No. 88-21
Decision No. 938
DATE: February 23, 1988
DECISION
The New York State Department of Social Services (State) appealed
a
decision by the Family Support Administration (Agency)
disallowing
$1,755,347 in federal financial participation (FFP) claimed by
the State
under Title IV-A of the Social Security Act (Act). These
costs had been
initially allocated to the State's Work Incentive Program
(WIN) but had
been shifted to Title IV-A after the State exceeded its
WIN
appropriation ceilings. The Agency disallowed the costs on two
bases.
The first was that section 403(d) of the Act imposes a ceiling on
the
amount of federal funds that can be used to match the social
and
supportive services provided by the State under the WIN program.
The
second was that the cost principles for state and local governments
in
Office of Management and Budget (OMB) Circular A-87 preclude the
State
from shifting costs allocable to a particular grant or cost objective
to
another grant program in order to overcome fund deficiencies or
avoid
restrictions imposed by law, and further provide that any excess of
cost
over the Federal contribution under one grant agreement is
unallowable
under other grant programs. OMB Circular A-87, Attachment
A, section
C.2.b., and Attachment B, section D.9.
The State argued that, notwithstanding the appropriation
restrictions
applicable to the WIN program, the appellant is legally entitled
under
section 403(a)(3)(C) of the Act to receive federal funding under
Title
IV-A for otherwise eligible expenditures which were initially
allocated
to the WIN program. The State contended that the
appropriation
restriction merely carries out the intent of Congress to limit
the
amount of FFP available under the WIN program at the enhanced rate of
90
percent. The State argued that the appropriation limitation does
not
preclude a state from receiving federal funding at the 50 percent
rate
under Title IV-A for otherwise eligible expenditures which may have
been
initially allocated to the WIN program. Finally, the State
concluded
that any other interpretation, whether set forth in regulation
or
administrative directive, would be contrary to the intent of
Congress
and the plain meaning of the Act.
The State admitted that this case involved the same legal and
factual
issues which were before the Board in Docket No. 87-54, where the
same
arguments were put forward by the State and rejected in New York
State
Dept of Social Services, DGAB No. 908 (1987). The State requested
that
the Board issue a summary decision on the basis of DGAB No. 908.
The
State submitted no new argument why DGAB No. 908 was wrong.
We therefore sustain the disallowance of $1,755,347, based on DGAB No.
908
(which we incorporate by reference here).
________________________________
Cecilia
Sparks Ford
________________________________ Norval
D.
(John) Settle
________________________________
Alexander
G. Teitz Presiding Board Member