Audit shows $1.5M overcharge to Suffolk

Developmental Disabilities Institute Inc. overcharged Suffolk County $1.5 million for services to disabled preschoolers as well as administrative and busing costs that were not reimbursable, according to a new audit by County Comptroller Joseph Sawicki.

The audit period from July 1, 2001, to June 30, 2002, also found that the institute failed to include $236,000 in offsetting fees collected from parents of non-handicapped children, which would have lowered costs. The school, according to the audit, charged for expenses related to a preschool educational program run for non-disabled children not eligible for aid.

According to the audit, released last month, the institute only provided students 74 percent of the required therapies because of absences of students and teachers, and staff shortages. They also found the agency billed the county improperly for staff holiday parties, political contributions and lobby expenses.

"The state Education Department has upheld all our findings and did not make a single change to our report," Sawicki said. His aides said the state will now reset the tuition rate for the audit period and the recovery will be shared, based on the 60-40 percent the state and county split in funding.

John Lessard, the institute's executive director, in a written response, said the audit was conducted at a time when the school was in bankruptcy and "not representative" of normal operations. County officials had to take time to reconstruct records before doing the audit.

"The reason for the majority of the audit disallowance was caused by the county's recalculation of the amount of teachers and teacher assistants' time that should be charged to the preschool program," Lesser said. "We feel the auditors' calculations . . . were inaccurate and unreasonable."