State Education Department


Skip to Content

Login   Subscribe   Site Index   Contact Us   Google Translate™

NYS Comptroller


Taxpayers' Guide to State and Local Audits

State Education Department
Hear 2 Learn PLLC
Compliance With the Reimbursable Cost Manual

Issued: July 22, 2015
Link to full audit report 2014-S-74
Link to 90-day response

To determine whether the costs reported by Hear 2 Learn PLLC (Hear 2 Learn) 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.

Hear 2 Learn is a privately owned institution located in Syracuse, New York that provides preschool special education services to children with disabilities from birth through age five. During the 2012-13 school year, Hear 2 Learn provided Special Education Itinerant Teacher (SEIT) services to 105 children with learning disabilities from 15 school districts in two counties in central New York. Hear 2 Learn is reimbursed for SEIT services through rates set by SED. These reimbursement rates are based on financial information, including costs, that Hear 2 Learn 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, Hear 2 Learn reported approximately $2.7 million in reimbursable costs on its CFR, of which $340,876 was for its SEIT program.

Key Findings

  • For the fiscal year ended June 30, 2013, Hear 2 Learn charged $20,851 in costs to the SEIT program that did not comply with SED’s requirements for reimbursement. The disallowances included $10,957 in other than personal service costs and $9,894 in personal service and associated fringe benefit costs that were either non-reimbursable, incorrectly reported on the CFR, or not properly documented.

Key Recommendations


  • Review the disallowances identified by our audit and, if warranted, make the necessary adjustments to Hear 2 Learn’s reimbursement rates.
  • Remind Hear 2 Learn officials of the pertinent SED guidelines that relate to the deficiencies we identified.

To Hear 2 Learn:

  • 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