(a) Expenditures made by social services officials for day services programs and their administration pursuant to the provisions of this title shall, if approved by the department, be subject to reimbursement by the state, in accordance with the regulations of the department as follows: there shall be paid to each social services district (1) the amount of federal funds, if any, properly received or to be received on account of such expenditures; (2) fifty per centum of allowable expenditures for day services and its administration, after first deducting therefrom any federal funds properly received or to be received on account thereof and the amount of any fees paid to the social services official for day services. The local government share of the cost of day services may be met in whole or in part by donated private funds, exclusive of in-kind services.

(b) For purposes of this title, expenditures for administration of day services shall include expenditures for compensation of employees in connection with the furnishing of day services, including but not limited to costs incurred for pensions, federal old age and survivors insurance and health insurance for such employees; training programs for personnel, operation, maintenance and service costs; and such other expenditures as equipment costs, depreciation and charges and rental values as may be approved by the department. It shall not include expenditures for capital costs. 2. The department shall, after consultation with appropriate state agencies and with the approval of the the director of the budget, promulgate regulations establishing standards of payment for day services provided children with public financial support. Such standards of payment shall include the services required to be provided to the child and his family and the cost of such services. When the department has established such standards, reimbursement under this section shall be limited in accordance with such standards. 3. (a) Claims for state reimbursement shall be made in such form and manner and at such times and for such periods as the department shall determine.

(b) When certified by the department, state reimbursement shall be paid from the state treasury upon the audit and warrant of the comptroller out of funds made available therefor. 4. Payment of state reimbursement shall be made to local fiscal officers as in the case of state reimbursement for public assistance and care under other provisions of this chapter.