Finding Text
Condition: Private pay tuition revenue is being recorded based on payments received instead of services performed. There is no documentation of private pay tuition rates by child or contracts with the families.
Criteria: Procedures should be in place to properly record revenue and receivables for tuition. OSSE requires a schedule of private pay tuition rates.
Cause: The Center did not maintain a schedule for private pay tuition revenue and no reconciliation was performed between amounts billed and amounts received. The Center is currently recording revenue based on the deposits received. The previous Director determined tuition rates and did not keep records of the rates or copies of current contracts.
Effect: The Center could be understating revenue and receivables related to private pay tuition. The Center could be unaware of unpaid tuition. The Center has no documentation to support the private pay tuition rates charged or how they were calculated.
Recommendation: The Center should record revenue and a corresponding receivable by child each month. The Center should create a schedule of tuition rates by program. Contracts should be maintained with each family with current tuition rates.
View of Responsible Officials and Planned Corrective Actions: The Center agrees with the finding. The Center is in the process of implementing the recommendation.