Southtowns Record

Lackawanna City School District - Tuition (2019M-59)

Government
Lackawanna City School District
Posted by publisher
Jun 7, 2019
Kind
State audit
Topics
Audits and oversight, Budget and taxes

Publisher's summary

School districts are required to pay tuition for resident students attending charter schools or receiving special education services from other public or private schools. We recalculated tuition costs and full-time equivalents (FTEs) using attendance records for charter school students and special education students' individualized education programs (IEPs) to verify that the District was billed for the correct services and frequency. We found that tuition was incorrectly calculated for nine students. The District was overbilled $5,300 for eight charter school students. The billing school used the correct rate for those students but used the incorrect FTE to calculate the tuition, resulting in overbilling. Additionally, the District was underbilled by a private school $900 for one special education student. The billing school used the incorrect rate when calculating tuition. We also found that the District did not have adequate and up-to-date residency information to support tuition charges totaling $2.5 million for 162 students (77 percent) attending charter schools and other public or private schools. The District had no registration or residency information on file for 44 of these students and registration information that was out-of-date and/or incomplete for the remaining 118 students.

Original document

Text · page 4 of 11

Tuition
School districts are required to pay tuition for resident students attending charter
schools or receiving special education services from other public or private
schools. The amount paid per student is based on rates established by the New
York State Education Department (SED).

How Should District Officials Verify that Tuition Payments Are
Accurate and Supported?
The board and district officials are responsible for adopting written policies and
procedures which provide sufficient guidance for employees involved in the
payment of tuition. These procedures should involve periodically reviewing tuition
payments to ensure the district is only billed for students residing within the district
and tuition charges have been calculated correctly using the appropriate SED
rate.

Charter school invoices should be supported by sufficient documentation to
verify both residency and attendance such as a roster of resident students, which
includes physical mailing addresses and parent/guardian names, adequate proof-
of-residency and attendance records. Tuition costs are based on attendance
or full-time equivalent (FTE) attendance. FTE is the decimal expression of the
enrollment of a student in a school compared to the length of the annual school
session.1 Prior to payment, district officials should use these records to verify that
tuition charges have been calculated correctly.

Tuition invoices from private and other public schools for special education
costs should be properly itemized and provide all pertinent information, including
supporting documentation, required for audit. Prior to payment, invoices should be
compared to the student’s individualized education program (IEP) to ensure that
the services provided and the recommended frequency are accurate, residency
information is up-to-date and that the district is charged the appropriate rate.

Tuition Payments Were Not Accurate
We reviewed the FTE calculations for a sample2 of 37 students (26 charter school
students and 11 special education students) for whom the District was billed
$504,000 in tuition.

We recalculated tuition costs and FTEs using attendance records for charter
school students and IEPs for special education students to verify that the District
was billed for the correct services and frequency. We found that tuition was

1 A student who is enrolled for the full school year has an FTE of 1.0, while a student who is only enrolled for half
of the school year has an FTE of 0.5.

2 See Appendix B Audit Methodology and Standards for information on the sample selection process.

2  Of f ic e of t he New York State Comptroller