Purpose

To determine the implementation status of the three recommendations in our initial report, State Education Department: Rainbow Rhymes Learning Center (Report 2009-S-84).

Background

Our initial audit report, which was issued on August 6, 2010, examined whether selected State Education Department (Department) grant payments to Rainbow Rhymes Learning Center (Rainbow) were appropriate and adequately supported. We found that Rainbow claimed $473,815 in expenses that were either not adequately supported, not Program appropriate, or claimed for a period for which Rainbow was not entitled to receive reimbursement. We recommended the Department recover the $473,815 from Rainbow; review another $166,665 of payments to Rainbow which we did not include in our audit; and develop and implement a monitoring system to ensure that contract-related payments are supported and appropriate and that all contract related services are provided.

Key Findings

• Department officials have made progress in addressing the matters in our initial report. Of the three prior audit recommendations, one was implemented and two were partially implemented.
• Despite some initial attempts, the Department had not yet recovered the overpayment cited in our audit. Department staff did examine the additional $166,665 of payments cited in our prior audit and disallowed an additional $10,022 as inappropriate.  These funds were recovered from Rainbow.

Key Recommendation

• Officials were asked to respond within 30 days of the issuance of this follow-up review, indicating actions planned to address the unresolved issues discussed in this report. 

Other Related Audit/Report of Interest

State Education Department: Rainbow Rhymes Learning Center Report (2009-S-84)