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State Education Department
United Cerebral Palsy Association of the Rochester Area, Inc.
Compliance With the Reimbursable Cost Manual

Issued: December 03, 2015
Link to full audit report 2014-S-75
Link to 90-day response

To determine whether the costs reported by United Cerebral Palsy Association of the Rochester Area, Inc. (UCP Rochester) 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 year ended December 31, 2013.

UCP Rochester, a not-for-profit organization located in Rochester, New York, is an SED-approved provider of preschool special education services. UCP Rochester provides these services to children with disabilities who are between the ages of three and five years. In 2013, UCP Rochester provided preschool special education services to about 90 children from 16 school districts located in Monroe and Ontario counties in western New York. UCP Rochester is reimbursed for preschool special education services through rates set by SED. These reimbursement rates are based on financial information, including costs, that UCP Rochester reports to SED on its annual CFR. To be eligible for reimbursement, reported costs must comply with RCM requirements. For the year ended December 31, 2013, UCP Rochester reported approximately $1.7 million in reimbursable costs for its preschool special education programs.

Key Findings

  • For the year ended December 31, 2013, we identified $6,634 in costs charged to the programs that did not comply with SED’s requirements for reimbursement. The non-reimbursable costs included: $2,210 in ineligible bonuses and associated fringe benefits; $1,681 for inappropriate consultant services; and $2,743 in other-than-personal-service (OTPS) costs that were either not allowed, not directly related to the programs, or not properly documented. In addition to the non-reimbursable costs, we also questioned the appropriateness of $1,544 in costs for consultant services that did not comply with bidding requirements outlined in the RCM.

Key Recommendations


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

To UCP Rochester:

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

Other Related Audits/Reports of Interest

Finger Lakes United Cerebral Palsy, Compliance With the Reimbursable Cost Manual 2015-S-10
Summit Educational Resources, Compliance With the Reimbursable Cost Manual 2014-S-49

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