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DAB: South Plains Community Action Agency
 

The Department of Appeals Division concluded that ACF did not have an adequate basis for disallowing any of the salary costs in question. Grantees will find this decision useful in understanding issues dealing with allowable costs. ACF's position that salary costs in excess of the amount budgeted for personnel were unallowable reflects a fundamental misunderstanding of the nature of grant funding.

DAB: South Plains Community Action Agency
 
 

Department of Health and Human Services
DEPARTMENTAL APPEALS BOARD

Appellate Division

SUBJECT: South Plains Community Action Agency DATE: December 15, 1997

South Plains Community Action Agency, Inc. (SPCAA) appealed two determinations by the Administration for Children and Families (ACF) disallowing a total of $297,677 charged to SPCAA's annual Head Start grants for the period March 1, 1992 through February 28, 1996. While the appeals were pending before the Board, SPCAA repaid several disallowance items, leaving $246,243 in dispute. See SPCAA letter dated August 4, 1997, at 1, n.1. The remaining disallowed items consisted of salaries of administrative staff which were charged directly to the personnel class category in SPCAA's approved Head Start budget. ACF disallowed most of the salary costs in question solely because they exceeded the amounts budgeted each year for personnel. ACF also determined that some of the salary costs were not necessary and reasonable. In the case of one employee, ACF found that salary costs were improperly charged to SPCAA's Head Start grant rather than another grant. More>>

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DAB: South Plains Community Action Agency. DHHS/DAB. 1997. English.