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State Education Department
Crossroads Center for Children
Compliance With the Reimbursable Cost Manual

Issued: May 13, 2016
Link to full audit report 2015-S-87
Link to 90-day response

To determine whether the costs reported by Crossroads Center for Children, (Crossroads) 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 fiscal year ended June 30, 2014.

Crossroads is an SED-approved, not-for-profit organization located in Schenectady, New York. Crossroads provides preschool special education services to children with disabilities who are between the ages of three and five years. Crossroads is reimbursed for preschool special education services through rates set by SED. These reimbursement rates are based on financial information, including costs, that Crossroads 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, 2014, Crossroads reported about $1.27 million in reimbursable costs on its CFR for two rate-based preschool special education programs.

Key Findings

For the year ended June 30, 2014, we identified $14,297 in non-personal service costs that were charged to the preschool special education programs that did not comply with SED’s requirements for reimbursement. The non-reimbursable costs included $11,111 for iPads, software, laptops, and various curriculum materials that were purchased with private grant funds; $2,281 for non-audit services that were performed by the same CPA firm that Crossroads contracted with for their annual audit; and $905 in non-reimbursable costs for travel, gifts and clothing for staff.

Key Recommendations


  • Review the recommended disallowances resulting from our audit and make the appropriate adjustments to the costs reported on Crossroads’ CFR and to Crossroads’ tuition reimbursement rates.
  • Remind Crossroads officials of the pertinent SED guidelines that relate to the deficiencies we identified.

To Crossroads:

  • Ensure that costs reported on annual CFRs fully comply with SED’s requirements, and communicate with SED to obtain clarification as needed.

Other Related Audits/Reports of Interest

Newmeadow, Inc.: Compliance With the Reimbursable Cost Manual (2015-S-48)
Story Place Preschool Inc., Compliance With the Reimbursable Cost Manual (2015-S-69)

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