Capital District Beginnings | services for young children with special needs and their families
Administrative Office | 673 Columbia Turnpike | P.O. Box 630 | East Greenbush, NY 12061 | (518) 233-0544
Supporting children where they live and learn
Capital District Beginnings | Services for Young Children with Special Needs

Our OSC Audit and Resolution

Capital District Beginnings (Beginnings) underwent an audit of compliance with the New York State Education Department’s (SED) Reimbursable Cost Manual (RCM) by the Office of the State Comptroller (OSC) for the program years 2008-2009 and 2009-2010. The OSC portion of this process began in January of 2011 and a report was issued in June of 2012. This report resulted in recommendations for the SED to consider and make a final determination on any “disallowances”. After a more careful review by SED, a determination was made to reinstate approximately half of the original OSC recommended disallowance.

One of the larger items that remained in the disallowed costs was a bonus that was paid to staff. Our system has not been able to give raises in the past 7 years due to no Cost of Living Adjustment (COLA) provided by SED. As a staff retention effort, we gave a small bonus to our staff in 2010. As the bonus amount was the same to all staff, it was disallowed and deemed not merit based as the RCM requires, despite the fact that Annual Performance Evaluations were completed. Beginnings has since corrected all of the identified issues. It is important to note that none of Beginnings’ disallowances were deemed fraudulent.

Preschool tuition rates are cost-based and as a result of the disallowances, a new, lower tuition rate was established in October of 2013 for the two audited years. We have now fully repaid the audit period obligation to all counties.