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NYS Comptroller


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State Education Department
New York Institute for Special Education: Selected Financial and Management Practices (Follow-Up)

Issued: December 27, 2011
Link to full audit report 2011-F-7

To assess the extent of implementation, as of August 26, 2011, of the 12 recommendations included in our initial report, Selected Financial and Management Practices (2008-S-157).

The New York Institute for Special Education (Institute), located in the Bronx, New York, is one of 11 Chapter 4201 private schools in New York that receive state operating aid to teach disabled students. The Institute received approximately $18 million in State funds during the 2010-2011 school year. In our initial audit report which was issued on January 14, 2010, we examined whether Institute officials had established and maintained an adequate system of internal control over the school's financial operations. We found that Institute officials had not performed certain criminal background checks, some employees from a non-State program were enrolled in the New York State and Local Employees Retirement System, and interests earned on State funds were not used to offset the costs of State-funded programs. We made 12 recommendations to Institute officials.

Key Findings

  • Institute officials have made significant progress in correcting the problems we identified in the initial report. However, improvements are still needed. Of the 12 prior audit recommendations, nine have been implemented, two have been partially implemented, and one has not been implemented.

Key Recommendations

  • Institute officials are given 30 days after the issuance of the follow-up review to provide information on any actions that are planned to address the unresolved issues discussed in this review.

Other Related Audits/Reports of Interest
New York Institute for Special Education: Selected Financial and Management Practices (Report 2008-S-157)
Lavelle School for the Blind: Selected Financial Practices (Report 2009-S-2)
Lexington School for the Deaf: Review of Procurement Practices (Report 2008-S-129)

State Government Accountability Contact Information:
Audit Director: John Buyce
Phone:(518) 474-3271; Email:
Address: Office of the State Comptroller; Division of State Government Accountability; 110 State Street, 11th Floor; Albany, NY 12236