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NYS Comptroller


Taxpayers' Guide to State and Local Audits

State Education Department
The ARC of Ulster-Greene
Compliance With the Reimbursable Cost Manual

Issued: September 02, 2016
Link to full audit report 2015-S-60
Link to 90-day response

To determine whether the costs reported by The ARC of Ulster-Greene (Ulster-Greene) on its Consolidated Fiscal Report (CFR) were properly calculated, adequately documented and allowable under the State Education Department’s (SED) guidelines, including the Reimbursable Cost Manual (RCM). The audit covered the year ended December 31, 2014.

Ulster-Greene, a not-for-profit organization located in Kingston, New York, is an SED-approved provider of preschool special education services. Ulster-Greene provides these services to children with disabilities between the ages of three and five years. In 2014, Ulster-Greene provided preschool special education services to about 130 children from ten school districts located in Ulster, Green and Delaware counties. Ulster-Greene is reimbursed for preschool special education services through rates set by SED. These reimbursement rates are based on financial information, including costs, that Ulster-Greene 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 year ended December 31, 2014, Ulster-Greene reported approximately $2.6 million in reimbursable costs for its preschool special education programs.

Key Finding

  • For the year ended December 31, 2014, we identified $995 in other-than-personal-service costs charged to the programs that did not comply with SED’s requirements for reimbursement.

Key Recommendations


  • Review the disallowances identified by our audit and make the necessary adjustments to the costs reported on Ulster-Greene’s CFRs and to Ulster-Greene’s tuition reimbursement rates, as appropriate.
  • Remind Ulster-Greene officials of the pertinent SED guidelines that relate to the deficiencies we identified.

To Ulster-Greene:

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

Other Related Audits/Reports of Interest

SED: Dynamic Center Inc., Compliance With the Reimbursable Cost Manual (2014-S-3)
SED: Upstate Cerebral Palsy, Compliance With the Reimbursable Cost Manual (2014-S-71)

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