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NYS Comptroller


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State Education Department
LaSalle School
Compliance with the Reimbursable Cost Manual

Issued: May 19, 2014
Link to full audit report 2012-S-68
Link to 90-day response

To determine whether the costs reported by the LaSalle School (LaSalle) on its Consolidated Fiscal Reports (CFRs) were properly calculated, adequately documented, and allowable under the State Education Department's (SED) Reimbursable Cost Manual (RCM) and the Consolidated Fiscal Report Manual (CFR Manual). The audit included the three fiscal years ended June 30, 2011.

LaSalle's campus school provides special and regular educational services for students in grades 6 through 12. Pursuant to the State Education Law, providers such as LaSalle are reimbursed by local school districts based on tuition rates established by SED. SED determines the tuition rates based on expense and other data reported on providers' annual CFRs. To be eligible for reimbursement, the provider's reported expenses must comply with the guidelines specified in the RCM and the CFR Manual. For the three fiscal years ended June 30, 2011, LaSalle claimed about $11.5 million in reimbursable expenses for the special education program we audited.

Key Findings

  • LaSalle claimed $433,968 in personal service and other than personal service costs (OTPS) that were unnecessary, unallowable or not correctly reported on the CFR.
  • The disallowances for personal services included $375,240 in compensation for uncertified teachers and $38,745 in other ineligible employee compensation.
  • The disallowances for OTPS included $11,450 in unsupported vehicle costs, $3,135 in inadequately documented staff travel, $3,005 in inadequately documented credit card purchases and ineligible credit card fees, $1,750 in ineligible administrative costs and $643 in ineligible costs for staff conferences.
  • LaSalle's Board of Trustees failed to report less-than-arm's-length business arrangements on its CFR and did not comply with RCM requirements pertaining to the documentation of cost allocation methodologies and preparation and maintenance of employee time and attendance sheets.

Key Recommendations

  • SED should review the disallowances resulting from our audit and make the appropriate adjustments to costs LaSalle reported on its CFRs and to tuition reimbursement rates, as appropriate.
  • LaSalle officials should ensure that the reporting of reimbursable expenses complies with SED requirements and that professional employees have the certifications required for the positions they hold.

Other Related Audits/Reports of Interest

Mill Neck Manor School for the Deaf: Compliance With the Reimbursable Cost Manual (2011-S-40)
Kids & the Training Institute, Inc.: Compliance With the Reimbursable Cost Manual (2010-S-69)

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