Letter Report on the Controls over Payments for Carter Cases by the New York City Department of Education’s Bureau of Non-Public Schools Payables

May 30, 2014 | FM13-087AL

Table of Contents

Letter Report on the Controls over Payments for Carter Cases by the New York City Department of Education’s Bureau of Non-Public Schools Payables

Introduction

Under the Individuals with Disabilities Education Act (IDEA), the New York City Department of Education (DOE) is required to identify and evaluate students with disabilities and to meet with their parents to recommend appropriate programs and services through an Individualized Education Plan. 

The IDEA establishes a mechanism for parents to challenge DOE’s evaluation of their children and plans to address their special education needs by providing them with the opportunity to request an impartial hearing through which they can challenge DOE’s recommended educational plan for their children.  In addition, pursuant to Florence County School District Four v. Carter, when a parent or guardian disagrees with DOE’s recommended educational plan, they may elect to place the student in a non-public school and seek reimbursement for their costs or direct payment to the school by commencing legal proceedings against DOE. 

DOE may elect to proceed with a hearing or settle the case.  Where cases are resolved with a decision or agreement that DOE will pay costs associated with non-public education of special needs children, NPSP is responsible for issuing settlement, appeal, and enhanced rate Special Education Teacher Support Services (SETSS) payments. In FY 2012, NPSP issued $115,680,280 in payments for settlements, appeals, and enhanced rate SETSS.

The objective of this audit was to determine whether NPSP has adequate controls over payments resulting from legal proceedings against DOE following the Supreme Court’s decision in Florence County School District Four v. Carter (Carter Cases).

Results

NPSP has adequate controls over payments it makes resulting from Carter Cases.  We reviewed 119 payments issued in FY 2012 made on behalf of 50 sampled students, totaling $1,675,953. All 119 payments were made in accordance with the related stipulations.  NPSP ensured that all required documents were submitted by the parents or the private schools before issuing payments.  In cases where vendors billed incorrectly, NPSP recalculated the invoice and only paid for authorized expenditures.  We found no duplicate payments in our sample.  Finally, in our review of sampled payments for enhanced rate SETSS, NPSP did not make payments for hours where one provider’s service hours overlapped with another provider’s hours for the same student.

DOE’s Response

DOE officials chose not to formally respond in writing to the report because there were no adverse findings.

$242 billion
Aug
2022