The Westchester School for Special Children (WSSC) in Yonkers overcharged taxpayers more than $800,000 over a four-year period and engaged in questionable business transactions with companies connected to board members and executives, according to an audit released July 3 by state Comptroller Thomas P. DiNapoli.
The findings of the audit are under review by the state Office of the Attorney General.
A call to the school elicited “no comment.”
Legislation that would improve oversight of pre-school special education by mandating audits of every provider recently passed the state Legislature. It is being reviewed by Gov. Andrew Cuomo”™s office.
“As recent audits by my office have shown, special education providers like the Westchester School for Special Children are taking advantage of lax state oversight to pad their own expenses,” DiNapoli said. “The state Education Department needs to make sure special needs children are getting the services they need and taxpayer dollars are protected. The Legislature has passed a bill to make sure every one of these providers is audited by my office. There must be greater accountability in the spending of special education dollars.”
WSSC provides special education services to school-age and pre-school children between 3 and 21 years of age. The New York City Department of Education and other school districts pay tuition and fees to the school according to rates set by state Education Department. For the four years ended June 30, 2011, WSSC claimed approximately $48.7 million in public support, the comptroller”™s office said.
State auditors claim the school paid nine employees who were unqualified for their positions a total of $254,868, including pay for eight uncertified special education teachers. At the same time, the school”™s former executive director and former assistant executive director took home $126,447 more than the state Education Department”™s allowable compensation levels, the auditors allege.
Auditors disallowed $112,734 in expenses for five vehicles ”“ a 2008 Chevrolet Tahoe, 2008 Ford Edge, 2008 Audi A-6, 2008 Lincoln Navigator, and a 2010 Lincoln MKS ”“ saying school officials could not produce records to support the business use of the vehicles.
State auditors allegedly found the school charged the state $61,284 in tuition reimbursements that did not comply with guidelines and $48,000 for salary increases to an employee whose job tasks and responsibilities did not change.
From 2007-08 through 2010-11, a company owned by WSSC”™s former board chairman allegedly installed security equipment costing $136,032 at the school under a contract that was not competitively bid as required. Auditors disallowed $19,318 in reported depreciation costs for the equipment.
At the same time, WSSC is said by auditors to have paid a relative of the current executive director $245,659 for capital construction work at the school even though he did not submit the lowest bid and his bid was submitted eight months after the deadline. Auditors disallowed $21,320 in depreciation costs related to this project.
In addition, WSSC allegedly paid $97,870 to a lobbying firm owned by the brother of WSSC”™s current executive director. Although these costs were not claimed for reimbursement, auditors noted they represented a “less-than-arms-length” business arrangement.
The former executive director used a WSSC credit card and WSSC checks to make personal purchases, DiNapoli”™s office alleges, including $4,254 at a Harley Davidson dealer; $1,723 for lodging near Zion National Park; $1,620 at a cigar store; and $369 at Victoria”™s Secret. Although the former executive director eventually reimbursed WSSC for the personal expenses, he should not have used WSSC funds for such expenses, the audit says.
