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State Education Department
Clinical Associates of the Finger Lakes
Compliance With the Reimbursable Cost Manual

Issued: July 22, 2015
Link to full audit report 2014-S-61
Link to 90-day response

To determine whether the costs reported by Clinical Associates of the Finger Lakes (CAFL) 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, 2012.

CAFL is a privately owned institution located in Victor, New York that provides preschool special education services to children with disabilities between the ages of three and five years. CAFL is reimbursed for preschool special education services through rates set by SED. These reimbursement rates are based on financial information, including costs, that CAFL reports to SED on its annual CFR. To be eligible for reimbursement, reported costs must comply with the guidelines specified in the RCM. For the fiscal year ended June 30, 2012, CAFL reported $1.2 million in reimbursable costs on its CFR for the preschool Special Education Itinerant Teacher (SEIT) program we audited.

Key Finding

We identified $72,401 in costs charged to the SEIT program that did not comply with SED’s requirements for reimbursement. The disallowances included $54,751 in various other-than-personal-service costs, such as property related costs and vehicle expenses, and $17,650 in personal service costs.

Key Recommendations


  • Review the disallowances identified by our audit and, if warranted, make the necessary adjustments to CAFL’s reimbursement rates.
  • Remind CAFL officials of the pertinent SED guidelines that relate to the deficiencies we identified.


  • 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