(WNY News Now) – A recent audit has uncovered significant financial discrepancies at a New York City-based preschool, Adaptive Solutions Multi Services, PLLC, revealing $803,921 in non-compliant costs over a three-year period.
New York City, N.Y. – An audit conducted by the State Education Department (SED) has identified nearly $1 million in costs reported by Adaptive Solutions Multi Services, PLLC (Adaptive Solutions) that failed to meet state requirements. The audit focused on financial reports submitted for special education programs serving children with disabilities between the ages of 3 and 5.
Adaptive Solutions, which operates preschool programs in New York City, reported approximately $11.2 million in reimbursable costs for the three fiscal years ending June 30, 2018. However, auditors found that $803,921 of those costs were unreasonable, unsupported, or incorrectly documented according to the SED’s Reimbursable Cost Manual (RCM) and the Consolidated Fiscal Reporting and Claiming Manual (CFR Manual).
Key findings include $277,388 in excessive compensation paid to two top officials who also owned other entities—exceeding the allowable limits for full-time employment. Additionally, $230,051 in compensation costs for one-on-one aides were improperly allocated to the wrong program, and $206,354 in IT and janitorial expenses lacked required documentation, including service details and fee breakdowns.
Other discrepancies included $61,999 in unsupported interest costs, $14,204 in personal service costs that were unrelated to the preschool program, and $13,925 in various other ineligible costs.
The report recommends that SED adjust Adaptive Solutions’ future reimbursement rates and ensure compliance with state financial guidelines. It also advises the organization to improve its cost-reporting practices and seek clarification from SED when necessary.
The full report can be read here.
Leave a Reply