- Associated Press - Thursday, April 3, 2014

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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