State Education Department

East Bronx Day Care Center: Reporting Costs and Enrollments for Tuition Rate-Setting Purposes

Students with handicapping conditions may be taught in separate schools whose costs are reimbursed by State and local taxpayers on the basis of tuition reimbursement rates set by the State Education Department. We audited the reimbursable costs reported by the East Bronx Day Care Center for two pre-school special education programs for the three years ended June 30, 2002. Children are placed in these two programs by the New York City Department of Education. We disallowed $948,536 of the reimbursable costs claimed by the Center because the costs did not comply with the Departmentís reimbursement guidelines. For example, personal service costs for Center staff not involved in the two special education programs were inappropriately allocated to the programs, and certain consultant costs were not adequately documented. We also determined that the Center did not accurately calculate its full-time equivalent enrollment in the two special education programs.

For a complete copy of Report 2003-S-22 click here.
For a copy of the 90-day response click here.