State Education Department

Pyramids Child Development 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 Pyramids Child Development Center for four pre-school programs for the year ended June 30, 2006. We disallowed $239,889 of the reimbursable costs claimed by the school because the costs did not comply with the Departmentís reimbursement guidelines. For example, there was no documentation to support the reasons bonuses were paid to several employees and no documentation certain other personal service costs were related to the Centerís pre-school programs. We also found that the Centerís Board of Directors was not sufficiently independent, as three of the five Board members were Center employees and a fourth was related to one of these three.

For a complete copy of Report 2007-S-91 click here.
For a copy of the 90-day response click here.
For a copy of the SED 90-day response click here.