This is straight from the proverbial horse's mouth...

http://www.oms.nysed.gov/oas/Report%20Fraud%20Abuse%20and%20waste.htm

Report Fraud, Abuse, and Waste.

The New York State Board of Regents and the State Education Department are committed to ensuring schools, BOCES, libraries, museums, educational organizations, and our programs use their funds in an effective and efficient manner. If you suspect fraud, waste, abuse, or mismanagement of public funds, you may report these allegations to us in the following ways.

Email: oas@mail.nysed.gov
Fax: (518) 473-0259
Phone: (518) 473-4516

Write to:

New York State Education Department
Office of Audit Services
89 Washington Avenue
Room 524 EB
Albany, NY 12234

In all cases, please provide as much detail as possible concerning your specific concerns along with any relevant information you can provide. You do not need to provide your name; however, you may want to provide your name and contact information in the event additional questions arise. Thank you.