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(1) Allowable administrative costs for public school districts shall include, but need not be limited to:听

(i) all reasonable costs incurred by the school district committee on preschool special education for activities performed in accordance with section 4410 of the Education Law; and听

(ii) all reasonable costs, other than due process costs, incurred by the board of education or trustees of the school district to fulfill their obligations under section 4410 of the Education Law.听

(2) The administrative costs described in paragraph (1) of this subdivision, when computed on a pro rata basis, shall be consistent with similar pro rata administrative costs associated with the operation of the committee on special education and school district activities for students with disabilities. Upon audit, significant differences between such per student costs will not be considered reasonable without an appropriate justification.听

(3) Reimbursement.听

(i) Allowable administrative costs incurred by a school district shall be fully reimbursable by the commissioner, using funds available for this purpose in accordance with Federal law and regulations governing the use of such funds, and by appropriate municipalities for that portion of such costs which exceeds the amount of Federal funds determined by the commissioner to be available.听

(ii) The commissioner shall annually determine an amount of Federal funds which may be used to reimburse school districts for allowable administrative costs incurred. The commissioner shall also calculate each school district's allocation from this amount, which shall be in the same ratio to this amount as the number of preschool students with disabilities residing in that district and served on December 1st of the most recent year for which satisfactory data are available bears to the total number of such students residing in the State on that date.听

(iii) The commissioner shall, prior to July 1st of each school year, notify each district of its allocation and set forth procedures and forms for making application for the use of such funds.听

(iv) Upon receipt and approval of such application, the commissioner shall forward to the applicant an advance payment of Federal funds which shall not exceed the approved amount budgeted by the applicant or the allocation, whichever is the lesser amount.听

(v) In January of any year in which additional Federal funds are determined by the commissioner to be available for this purpose during that year, the commissioner shall notify each district of its amended allocation and the opportunity to amend its application for approval to use such additional funds.听

(vi) In January of any year for which adjustments for growth in the number of preschool students served under section 4410 of the Education Law from December 1st of a given year to December 1st of the next year, the commissioner shall notify each district determined to have contributed to such growth of its pro rata share of the amount of such award set aside by the commissioner for use to reimburse allowable administrative costs. Each such share shall be in the same ratio to the amount set aside by the commissioner as that school district's actual growth is to the sum of actual growths of all such districts in the State.听

(vii) At the close of the school year for which the administrative funds were advanced as described in subparagraphs (i) through (vi) of this paragraph, each public school district shall submit, in a form prescribed by the commissioner, a statement of the administrative costs incurred in connection with this section. The prescribed form shall include, but not be limited to, a summary of the advance revenues received by the school district, a detailed accounting of expenditures for approval by the commissioner and a computation of the difference between actual expenditures and advanced revenues. The prescribed form shall be submitted to the commissioner not later than September 1st next following the end of the school year in which services were provided.听

(viii) The appropriate municipality shall pay the school district within 30 days of receipt of a voucher from the district for excess administrative costs as determined by the commissioner. The appropriate municipality shall submit a State aid voucher in the manner prescribed by the commissioner for reimbursement of such costs pursuant to section 4410(11) of the Education Law within 30 days of the date on which the payment was made to the school district.听

(ix) Due process costs shall not be included in allowable administrative costs.听

(1) Allowable costs associated with due process proceedings for students eligible to receive services pursuant to section 4410 of the Education Law shall include all reasonable and appropriate costs incurred by the school district as determined by the commissioner. A detailed accounting and itemization of all due process costs incurred may be submitted in a format prescribed by the commissioner no later than 30 days after the determination of the hearing officer has been received by the school district.听

(2) The commissioner shall review the due process costs and, if indicated, recommend a student specific tuition rate to the director of the budget for certification. Upon approval, the commissioner will notify the school district and the appropriate municipality of such student specific tuition rate.听

(3) The school district shall submit a voucher to the appropriate municipality for all approved due process costs within 30 days of the receipt of the certified student specific tuition rate notification.听

(4) The appropriate municipality shall reimburse the school district for all due process costs within 30 days of receipt of the voucher from the school district for such approved due process costs as required by the certified student specific rate notification.