A new state audit has found that the E. John Gavras Center in Auburn claimed more than $625,000 in costs that didn’t meet state reimbursement rules for preschool special education services.
The Office of the State Comptroller reviewed three years of financial reports from the center and flagged a wide range of issues — from unsupported staff payments and excess fringe benefits to donated rent and ineligible vehicle costs.
The Gavras Center is a not-for-profit provider serving preschool students with disabilities in Cayuga and surrounding counties. The audit focused on costs reported to the State Education Department (SED) between 2019 and 2021.
According to the findings, the center reported $283,000 in donated rent as if it were a reimbursable cost, used public special education funds to cover non-special-ed services, and claimed over $81,000 in staff compensation that wasn’t properly documented.
Other flagged costs include:
- $56,000 in staff expenses that exceeded SED’s approved staffing ratios
- $27,000 in fringe benefits not eligible for reimbursement
- $16,000 in bonus pay that didn’t follow required guidelines
- $7,000 in vehicle costs without logs to support them
In total, auditors disallowed $625,534 in reported expenses out of $4.3 million.
Response from Gavras Center
Gavras officials said the findings largely stem from outdated practices and pandemic-related disruptions. In a response included in the audit, the center cited major leadership turnover in 2024 and noted that some financial records from prior years were difficult to reconstruct.
The new executive team says it has already taken steps to fix the problems — including improving internal controls, retraining staff on cost reporting rules, and hiring outside support during the transition.
The center pushed back on some findings, including about $34,000 in excess staffing costs, arguing that additional hires were necessary during the COVID-19 pandemic to comply with distancing guidelines and maintain safe in-person services.
What’s next
The State Education Department agreed with the audit’s recommendations and said it would review the disallowed costs and adjust the center’s tuition reimbursement rates if necessary. SED also plans to offer additional training to Gavras staff.
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