A-69741, JANUARY 23, 1935, 15 COMP. GEN. 655

A-69741: Jan 23, 1935

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ARE NOT AFFECTED BY THE NUMBER OF DAYS IN A MONTH OR THE MANNER OR TIME OF MAKING PAYMENTS TO THE INDIVIDUALS BY THE STATES. STATE: THE BOARD IS ABOUT TO BE CONFRONTED WITH THE QUESTION AS TO THE APPLICATION OF THIS SECTION IN THE CASE OF THE STATE OF CONNECTICUT. UNDER THIS SYSTEM THE STATE WILL. SOME DAYS OF WHICH WILL FALL IN DIFFERENT MONTHS. DURING SOME MONTHS MORE THAN $30 WILL BE PAID TO A RECIPIENT AND DURING OTHERS. ALTHOUGH THE ASSISTANCE FOR EACH MONTH IS EITHER $30 OR $31 DEPENDING ON THE NUMBER OF DAYS IN THE MONTH. IS THE SOCIAL SECURITY BOARD CORRECT IN ASSUMING THAT IT SHOULD MAKE CERTIFICATION TO THE SECRETARY OF THE TREASURY OF THE ESTIMATED AMOUNTS ACTUALLY TO BE EXPENDED DURING A PARTICULAR QUARTER?

A-69741, JANUARY 23, 1935, 15 COMP. GEN. 655

SOCIAL SECURITY ACT OF 1935 - FEDERAL CONTRIBUTIONS TO THE STATES THE AUTHORIZED CONTRIBUTIONS TO THE SEVERAL STATES AS OLD-AGE ASSISTANCE UNDER SECTION 3 OF THE SOCIAL SECURITY ACT OF 1935, 49 STAT. 621, ARE NOT AFFECTED BY THE NUMBER OF DAYS IN A MONTH OR THE MANNER OR TIME OF MAKING PAYMENTS TO THE INDIVIDUALS BY THE STATES.

COMPTROLLER GENERAL MCCARL TO THE CHAIRMAN, SOCIAL SECURITY BOARD, JANUARY 23, 1935:

THERE HAS BEEN CONSIDERED THE MATTER PRESENTED IN YOUR LETTER OF JANUARY 7, 1936, IN WHICH YOU REFER TO SECTION 3 (A) (1) OF THE SOCIAL SECURITY ACT OF AUGUST 14, 1935, 49 STAT. 621; AND STATE:

THE BOARD IS ABOUT TO BE CONFRONTED WITH THE QUESTION AS TO THE APPLICATION OF THIS SECTION IN THE CASE OF THE STATE OF CONNECTICUT. THE LAW OF THAT STATE PROVIDES FOR THE MAKING OF PAYMENTS OF OLD-AGE ASSISTANCE ON A WEEKLY BASIS, AT THE RATE OF $7 A WEEK. UNDER THIS SYSTEM THE STATE WILL, IN SOME CASES, MAKE PAYMENTS FOR A PARTICULAR WEEK, SOME DAYS OF WHICH WILL FALL IN DIFFERENT MONTHS. AS A RESULT, DURING SOME MONTHS MORE THAN $30 WILL BE PAID TO A RECIPIENT AND DURING OTHERS, LESS THAN THAT AMOUNT, ALTHOUGH THE ASSISTANCE FOR EACH MONTH IS EITHER $30 OR $31 DEPENDING ON THE NUMBER OF DAYS IN THE MONTH.

IS THE SOCIAL SECURITY BOARD CORRECT IN ASSUMING THAT IT SHOULD MAKE CERTIFICATION TO THE SECRETARY OF THE TREASURY OF THE ESTIMATED AMOUNTS ACTUALLY TO BE EXPENDED DURING A PARTICULAR QUARTER?

IS IT CORRECT IN FURTHER ASSUMING THAT IN LIMITING FEDERAL PAYMENTS TO ONE-HALF OF $30 PAID AS ASSISTANCE WITH RESPECT TO EACH INDIVIDUAL FOR ANY MONTH, THE ASSISTANCE GIVEN FOR THE MONTH GOVERNS, REGARDLESS OF ACTUAL EXPENDITURE DURING THE MONTH?

SECTION 3 OF THE SOCIAL SECURITY ACT OF 1935, 49 STAT. 621, IS AS FOLLOWS:

SEC. 3. (A) FROM THE SUMS APPROPRIATED THEREFOR, THE SECRETARY OF THE TREASURY SHALL PAY TO EACH STATE WHICH HAS AN APPROVED PLAN FOR OLD-AGE ASSISTANCE, FOR EACH QUARTER, BEGINNING WITH THE QUARTER COMMENCING JULY 1, 1935, (1) AN AMOUNT, WHICH SHALL BE USED EXCLUSIVELY AS OLD-AGE ASSISTANCE, EQUAL TO ONE-HALF OF THE TOTAL OF THE SUMS EXPENDED DURING SUCH QUARTER AS OLD-AGE ASSISTANCE UNDER THE STATE PLAN WITH RESPECT TO EACH INDIVIDUAL WHO AT THE TIME OF SUCH EXPENDITURE IS SIXTY-FIVE YEARS OF AGE OR OLDER AND IS NOT AN INMATE OF A PUBLIC INSTITUTION, NOT COUNTING SO MUCH OF SUCH EXPENDITURE WITH RESPECT TO ANY INDIVIDUAL FOR ANY MONTH AS EXCEEDS $30, AND (2) 5 PERCENTUM OF SUCH AMOUNT, WHICH SHALL BE USED FOR PAYING THE COSTS OF ADMINISTERING THE STATE PLAN OR FOR OLD-AGE ASSISTANCE, OR BOTH, AND FOR NO OTHER PURPOSE: PROVIDED, THAT THE STATE PLAN, IN ORDER TO BE APPROVED BY THE BOARD, NEED NOT PROVIDE FOR FINANCIAL PARTICIPATION BEFORE JULY 1, 1937, BY THE STATE, IN THE CASE OF ANY STATE WHICH THE BOARD, UPON APPLICATION BY THE STATE AND AFTER REASONABLE NOTICE AND OPPORTUNITY FOR HEARING TO THE STATE, FINDS IS PREVENTED BY ITS CONSTITUTION FROM PROVIDING SUCH FINANCIAL PARTICIPATION.

(B) THE METHOD OF COMPUTING AND PAYING SUCH AMOUNTS SHALL BE AS FOLLOWS:

(1) THE BOARD SHALL, PRIOR TO THE BEGINNING OF EACH QUARTER, ESTIMATE THE AMOUNT TO BE PAID TO THE STATE FOR SUCH QUARTER UNDER THE PROVISIONS OF CLAUSE (1) OF SUBSECTION (A), SUCH ESTIMATE TO BE BASED ON (A) A REPORT FILED BY THE STATE CONTAINING ITS ESTIMATE OF THE TOTAL SUM TO BE EXPENDED IN SUCH QUARTER IN ACCORDANCE WITH THE PROVISIONS OF SUCH CLAUSE, AND STATING THE AMOUNT APPROPRIATED OR MADE AVAILABLE BY THE STATE AND ITS POLITICAL SUBDIVISIONS FOR SUCH EXPENDITURES IN SUCH QUARTER, AND IF SUCH AMOUNT IS LESS THAN ONE-HALF OF THE TOTAL SUM OF SUCH ESTIMATED EXPENDITURES, THE SOURCE OR SOURCES FROM WHICH THE DIFFERENCE IS EXPECTED TO BE DERIVED, (B) RECORDS SHOWING THE NUMBER OF AGED INDIVIDUALS IN THE STATE, AND (C) SUCH OTHER INVESTIGATION AS THE BOARD MAY FIND NECESSARY.

(2) THE BOARD SHALL THEN CERTIFY TO THE SECRETARY OF THE TREASURY THE AMOUNT SO ESTIMATED BY THE BOARD, REDUCED OR INCREASED, AS THE CASE MAY BE, BY ANY SUM BY WHICH IT FINDS THAT ITS ESTIMATE FOR ANY PRIOR QUARTER WAS GREATER OR LESS THAN THE AMOUNT WHICH SHOULD HAVE BEEN PAID TO THE STATE UNDER CLAUSE (1) OF SUBSECTION (A) FOR SUCH QUARTER, EXCEPT TO THE EXTENT THAT SUCH SUM HAS BEEN APPLIED TO MAKE THE AMOUNT CERTIFIED FOR ANY PRIOR QUARTER GREATER OR LESS THAN THE AMOUNT ESTIMATED BY THE BOARD FOR SUCH PRIOR QUARTER.

(3) THE SECRETARY OF THE TREASURY SHALL THEREUPON, THROUGH THE DIVISION OF DISBURSEMENT OF THE TREASURY DEPARTMENT AND PRIOR TO AUDIT OR SETTLEMENT BY THE GENERAL ACCOUNTING OFFICE, PAY TO THE STATE, AT THE TIME OR TIMES FIXED BY THE BOARD, THE AMOUNT SO CERTIFIED, INCREASED BY 5 PERCENTUM.

THUS THE AUTHORIZED CONTRIBUTION TO THE SEVERAL STATES, COMPLYING WITH THE TERMS OF THE SAID LAW, IS AN AMOUNT EQUALING ONE-HALF OF THE TOTAL OF THE SUMS EXPENDED DURING EACH QUARTER AS OLD-AGE ASSISTANCE TO INDIVIDUALS AT A RATE NOT IN EXCESS OF $30 PER MONTH--- PLUS 5 PERCENT FOR ADMINISTRATIVE EXPENSES. THE TWO UNITS OF TIME FOR CONSIDERATION IN THE ADMINISTRATION OF THE ACT THUS BEING A QUARTER (3 CALENDAR MONTHS)AND THE CALENDAR MONTH ITSELF, IT MATTERS NOT WHETHER THE MONTH HAS 28, 30, OR 31 DAYS, OR WHETHER THE STATE MAKES THE PAYMENT TO THE INDIVIDUAL ON THE FIRST OR LAST DAY OF THE MONTH OR SOME OTHER DAY, OR WHETHER THE PAYMENTS ARE WEEKLY, AS IN THE CASE OF CONNECTICUT.

STATED IN OTHER WORDS, THE FEDERAL CONTRIBUTIONS AS OLD-AGE ASSISTANCE MAY NOT EXCEED A MAXIMUM OF $15 FOR ANY 1 CALENDAR MONTH FOR EACH INDIVIDUAL REGARDLESS OF THE FACT THAT THE STATE MAY PAY THE INDIVIDUAL MORE THAN $30 DURING SUCH PERIOD, SUBJECT TO THE FURTHER QUALIFICATION THAT IF THE AMOUNT PAID BY THE STATE TO THE INDIVIDUAL AS OLD-AGE ASSISTANCE IS LESS THAN $30 FOR ANY 1 CALENDAR MONTH, THE AMOUNT TO BE ESTIMATED AND PAID BY THE UNITED STATES MAY NOT EXCEED ONE-HALF OF SUCH LESSER AMOUNT PAID FOR SAID PERIOD--- INCREASED BY 5 PERCENTUM FOR ADMINISTRATIVE EXPENSES.