Letter Report on the New York City Department of Education’s Payments to Navigant Consulting, Inc.
Letter Report on the New York City Department of Education’s Payments to Navigant Consulting, Inc.
December 2, 2013
LETTER REPORT IN BRIEF
Introduction
Pursuant to the Individuals with Disabilities Education Act, Section 504 of the Rehabilitation Act, and New York State law, the New York City Department of Education (DOE) is required to maintain a due process hearing system whereby parents are able to challenge the actions of DOE in providing special education services to their children with disabilities. On December 12, 2003, a group of parents filed a lawsuit against DOE, claiming that the favorable orders and settlements they received from the court were not being enforced in a timely manner.
On December 11, 2007, DOE, Advocates for Children of New York, and the legal counsel for the Lead Plaintiffs (parents) entered into a Stipulation and Agreement of Settlement (Stipulation) that required an independent auditor to calculate the percentage of orders that were implemented in a timely manner and generate reports showing the results. On March 26, 2008, the court appointed Daylight Forensic and Advisory, LLC (Daylight) as independent auditor. Subsequently, on May 14, 2010, Daylight was acquired by Navigant Consulting, Inc. (Navigant). On June 24, 2010, a court order was issued assigning Daylight’s responsibilities to Navigant, with no objections from either party.
The objectives of this audit were to determine whether Navigant appropriately billed DOE for the services provided and performed its responsibilities as required by the Stipulation. The scope period of this audit was January 1, 2011, to June 30, 2013. Between January 2011 and June 2013, Navigant issued 11 quarterly reports. In addition, Navigant submitted 29 invoices totaling approximately $4.3 million to DOE for the services it rendered between January 2011 and May 2013.
Results
Our review found that Navigant appropriately billed DOE for the services provided and performed its responsibilities as required by the Stipulation. Navigant provided DOE with monthly invoices and timesheets containing descriptions of tasks performed and rates billed. For services rendered between January 2011 and May 2013, we determined that the total fees and hours billed were accurate. In addition, the hourly rates corresponded with those listed on Navigant’s engagement letter. Furthermore, Navigant issued all quarterly reports as required. Finally, DOE reviewed the monthly invoices and timesheets and appropriately addressed any unusually high billable hours or discrepancies with Navigant.
DOE’s Response
In its response, DOE officials stated “… the New York City Department of Education wishes only to thank the Comptroller’s team for its conduct of the audit and willingness to ground itself in an understanding of the nature of the Department’s relationship with Navigant Consulting, Inc.”