Audit: special ed contractor overbilled state

ALBANY, N.Y. (AP) – A new audit suggests a New York City special
education contractor overcharged the state by more than $875,000.

The audit released Wednesday by state Comptroller Thomas DiNapoli
says TheraCare Preschool Services Inc. overbilled the state between 2008 and
2011.

TheraCare provides special education services to preschool-aged
children in New York City and three nearby counties.

DiNapoli says TheraCare billed the state for executive
compensation, employee bonuses and staff recruitment costs that aren't allowed
under state reimbursement rules. He recommends that state education officials
work with provider to recover overpayments.

In a formal response, an attorney for TheraCare disputed the
audit's findings and says they are the result of differences in how state
reimbursement rules are interpreted. A message left with the attorney was not
immediately returned Wednesday.

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