Purpose

To determine whether the costs reported by Helping Hands School (Helping Hands) on its Consolidated Fiscal Report (CFR) were properly calculated, adequately documented, and allowable under the State Education Department’s (SED) guidelines, including the Reimbursable Cost Manual (RCM). The audit covered the fiscal year ended June 30, 2014.

Background

To determine whether the costs reported by Helping Hands School (Helping Hands) on its Consolidated Fiscal Report (CFR) were properly calculated, adequately documented, and allowable under the State Education Department’s (SED) guidelines, including the Reimbursable Cost Manual (RCM). The audit covered the fiscal year ended June 30, 2014.

Key Finding

Based on a review of a sample of transactions for the year ended June 30, 2014, we determined Helping Hands reported $26 in non-personal service costs on its CFR that did not comply with SED’s requirements for reimbursement.

Key Recommendations

To SED:

• Review the disallowances identified by our audit and make the necessary adjustment to the costs reported on Helping Hands’ CFR and to Helping Hands’ tuition reimbursement rates, as appropriate.

To Helping Hands:

• Ensure that all costs reported on annual CFRs fully comply with SED’s requirements.

Other Related Audits/Reports of Interest

State Education Department: The Arc of Orange County – Compliance with the Reimbursable Cost Manual (2015-S-45)
State Education Department: Mid Island Therapy Associates, LLC – Compliance with the Reimbursable Cost Manual (2014-S-40)