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
Early Education Center
Compliance With the Reimbursable Cost Manual

Issued: July 25, 2016
Link to full audit report 2015-S-96
Link to 90-day response

To determine whether the costs submitted by the Early Education Center (Center) 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, 2014.

The Center, for-profit organization located in Highland, New York, provides preschool special education services to children with disabilities between the ages of three and five years. The Center is reimbursed for preschool special education services through rates set by SED. These reimbursement rates are based on financial information, including costs the Center 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, the Center reported about $2.4 million in reimbursable costs on its CFR, for the Preschool Special Class and the Preschool Integrated Special Class programs (the Programs) we audited.

Key Finding

We identified $11,508 in other than personal service costs charged to the Programs that did not comply with SED’s requirements for reimbursement. The ineligible costs included vehicles expenses, food for meetings and advertising.

Key Recommendations


  • Review the disallowances identified by our audit and make the necessary adjustments to the costs reported on the Center’s CFRs and to the Center’s tuition reimbursement rates, as appropriate.

To the Center:

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

Other Related Audits/Reports of Interest

The Arc of Orange County: Compliance With the Reimbursable Cost Manual (2015-S-45)

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