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NYS Comptroller


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State Education Department
Summit Educational Resources
Compliance With the Reimbursable Cost Manual

Issued: July 22, 2015
Link to full audit report 2014-S-49
Link to 90-day response

To determine whether the costs reported by Summit Educational Resources (Summit) on its Consolidated Fiscal Report (CFR) were properly calculated, adequately documented and allowable under the State Education Department’s (SED’s) guidelines, including the Reimbursable Cost Manual (RCM). The audit covered the fiscal year ended June 30, 2013.

Summit provides a wide range of services to children with disabilities from ages three through 21. Summit provides preschool special education services to children with developmental disabilities from 38 school districts in three counties in western New York. Summit is reimbursed for preschool special education services through rates set by SED. These reimbursement rates are based on financial information, including costs, that Summit reports to SED on its annual CFR. To be eligible for reimbursement, reported costs must comply with RCM requirements. For the fiscal year ended June 30, 2013, Summit reported approximately $4.25 million in reimbursable costs for its preschool special education programs.

Key Findings

For the fiscal year ended June 30, 2013, we identified $28,176 in other than personal service costs that did not comply with SED’s requirements for reimbursement. The disallowances included $26,754 for consultant services and $1,422 in various other costs that were ineligible for reimbursement. We also questioned an additional $34,357 in costs for consultant services and information technology procurements that were not obtained through competitive bidding practices.

Key Recommendations


  • Review the disallowances and questionable costs identified by our audit and, if warranted, make the necessary adjustments to Summit’s reimbursement rates.
  • Work with Summit officials to ensure they understand and comply with the RCM and the Consolidated Fiscal Reporting Manual.

To Summit:

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

Other Related Audits/Reports of Interest

Dynamic Center Inc.: Compliance With the Reimbursable Cost Manual (2014-S-3)
Bright Start Pediatric Services: Compliance With the Reimbursable Cost Manual (2014-S-34)

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