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Department of Health and Human Services DEPARTMENTAL APPEALS BOARD Appellate Division SUBJECT: Municipality of Santa Isabel DATE: March 3 , 2009 Docket No. A-09-1 Decision No . 2230 DECISION T h e Municipality of Santa Isabel (the Municipality) appealed t h e September 1 8 , 2008 determination of the Administration f o r Children a n d Families (ACF) to terminate t h e grant awarded t o t h e Municipality f o r a Head Start program and a n Early Head Start program. AC F based the termination o n its finding that t h e Municipality failed to correct tw o deficiencies identified i n a follow-up review of the Municipality's programs conducted o n Ma y 2 , 2008. AC F subsequently withdrew o n e of th e deficiency findings pending i t s receipt a n d review of th e Municipality's audit report f o r t h e fiscal year ending June 3 0 , 2008. AC F B r . at 1-2, 2 1 n.13. The Municipality challenges t h e termination o n th e grounds that 1) t h e Municipality corrected a l l other deficiencies identified i n ACF's initial review a n d substantially complied with t h e regulation that wa s t h e basis f o r th e remaining finding o f a n uncorrected deficiency, an d 2) th e remaining uncorrected deficiency resulted from a longstanding operating deficit that t h e Municipality wa s taking measures t o reduce. AC F moved t o dismiss t h e appeal f o r failure t o meet th e requirements fo r th e content of a n appeal i n 4 5 C.F.R. § 1303.14(d). The Municipality requested that t h e Board deny ACF's motion t o dismiss a n d grant th e Municipality " a n oral hearing." Reply dated 12/22/08, at 1 . F o r th e reasons explained below, we deny ACF's motion t o dismiss. As we also explain, however, the Municipality ha s no t disputed a n y material fact alleged b y AC F a s a basis f or the termination, a n d h a s n o t identified a n y valid legal basis f o r reversing ACF's determination t o terminate the grant. Accordingly, we conclude that a n oral proceeding would serve no purpose, a n d we uphold ACF's determination o n summary judgment.

Departmental Appeals Board DAB2230 Municipality of Santa Isabel (03.03.2009)

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