In an audit of the records and procedures for ASA Institute of Computer and Business Technology, Inc. (ASA), the New York Office of the State Comptroller determined that ASA was overpaid $696,352 because school officials incorrectly certified certain students as eligible for Tuition Assistance Program (TAP) awards. This error was discovered using a statistical sample of 103 randomly selected awards from the 1,896 awards the school certified during the 3-year period ending June 1994. From the statistical sample, 44 awards totaling $45,738 were disallowed, and using a 95% confidence level, statistical projections were made to determine the total amount overpaid to the school. In response to ASA objections to the audit and its claims, this document serves to clarify the reasons that some disallowances were dropped and others retained. Disallowances from the audit resulted from students who graduated without meeting requirements, students who did not graduate and did not attend school full-time, or had insufficient course hours, excessive make-up class hours, and courses missing less than 10% of State Education Department (SED)-approved hours. Recommendations include recovering the $696,352 plus interest incorrectly paid to the school, and ensuring that ASA complies with state mandates. (YKH)