State Education Department

Leake and Watts Services, Inc.: 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 Leake and Watts Services, Inc. for two pre-school programs and one school-age program for the year ended June 30, 2005. We disallowed $646,066 of the reimbursable costs claimed by the school because the costs did not comply with the Departmentís reimbursement guidelines. For example, refinancing costs for capital project bonds were not appropriately amortized over the remaining life of the bonds and the salaries of certain school officials exceeded Department-approved levels.

For a complete copy of Report 2006-S-123 click here.
For a copy of the 90-day response click here.