Tot special-ed network found to have padded bills
A NETWORK OF preschools for children with disabilities soaked the state Education Department for nearly $6 million in bogus expenses, a report published Wednesday by state Controller Thomas DiNapoli charges.
DiNapoli’s audit of the Manhattan-based nonprofit New York League for Early Learning uncovered the phony charges in a review of $138 million in expenses for special education services from 2011-2014.
The bunk reimbursements included $1.7 million in overpayments for duplicate administrative costs for the school’s executive director, assistant executive director and seven administrators, and $1.2 million in duplicate costs for services, including technical consultants, according to DiNapoli (photo right).
Almost $1 million went to pay for food for the staff, recognition awards and vehicle expenses that were not supported or documented, the controller said.
“This special education provider failed to adhere to the state Education Department’s rules for getting taxpayer-funded reimbursements,” DiNapoli said. “We have referred our findings to the (department) for the recovery of this money.”
DiNapoli’s audit found the nonprofit billed the state for a variety of baloney charges, including payments to staffers and costs for materials.
The audit reports the state paid for $738,901 in bogus bonuses, $292,279 in ineligible food costs and $377,038 in shady consulting services fees.
DiNapoli’s report says the state should recover the money it shelled out for ineligible costs — and more — from the preschool group.
State education officials agreed with DiNapoli’s recommendations and said they would work to recover the nearly $6 million in bad payments.
“We applaud Controller DiNapoli for bringing to light the allegations raised in the . . . audit,” said state Education Department spokesman Jonathan Burman. “We have an obligation to ensure that every dollar intended to educate our children is used for that purpose and for that purpose only,” he added. “We agree with all of the controller’s recommendations and will work to recover any overpayments.”
DiNapoli’s audit did not recommend any criminal charges against the organization, and it did not suggest that any children were harmed in any of the nonprofit’s alleged transgressions.
The League for Early Learning has operated city schools for kids with disabilities for 35 years, according to the group’s website.
The nonprofit operates eight schools in every borough except Staten Island, the website says.
Margaret Chiara, the organization’s executive director, said the audit reflects the controller’s interpretation of the reimbursable costs.
“The New York League for Early Learning will be working with the New York State Education Department, to whom the report is directed, to address the matter,” Chiara said.