Department of Health and Human Services
DEPARTMENTAL APPEALS BOARD
Appellate Division
SUBJECT: New York State Department of Social Services
DATE: March 23, 1994
Docket No. A-94-067
Decision No. 1470
DECISION
The New York State Department of Social Services (New York) appealed a
determination by the Administration for Children and Families (ACF)
disallowing $136,768,669 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 a summary decision based on DAB No. 1428,
affirming additional disallowances of title IV-E reimbursement for
protective services. New York State Dept. of Social Services, DAB No.
1442 (1993). As to this disallowance, New York requested another
summary decision upholding this disallowance based on DAB No. 1428.
Notice of Appeal dated February 3, 1994. ACF consented to the issuance
of a summary decision. ACF Letter of March 15, 1994.
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 January 5, 1994
disallowing $146,861,111 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;
foster care maintenance claims made by NYC's Human Resources
Administration which allegedly exceeded the actual expenditures to
voluntary child care agencies; administrative costs for preventive and
protective services; and administrative costs for training. This
decision concerns only one portion of the January 5, 1994 disallowance:
administrative costs for protective services provided by local Social
Services Districts in the amount of $136,768,669. The portions of the
disallowance concerning preventive services costs, training costs, and
maintenance payments 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