FAC Explorer

Finding 1240189 (2024-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2026-10-08
Audit: 414776
Organization: Summit County Child Care Resource and Referral (CO)
Auditor: SUMMIT ACCOUNTANTS PLLC

AI Summary

  • Core Issue: Inconsistent application of indirect cost allocation methodology for the Head Start program.
  • Impacted Requirements: Undercharging and overcharging of costs led to questioned costs totaling $14,453.
  • Recommended Follow-Up: Review and standardize the allocation methodology to ensure compliance and accuracy in future cost assessments.

Finding Text

During our testing of indirect cost allocations for the Head Start program, SA identified that the Company did not apply its allocation methodology consistently across all program activities. While our testing indicated that the Company frequently undercharged the Head Start program for indirect costs, we identified specific transactions where the program was overcharged, resulting in known questioned costs of $1,200. Based on the results of our testing and the systemic nature of the inconsistency, SA determined the likely questioned costs to be $14,453.

Corrective Action Plan

ECO has had re-organization within the management team during 2024. During the time of transition few items including cost allocation and indirect cost management were lost in the shuffle. The management team recognizes the high priority to maintain supporting documents for all charges, including timesheets, and supporting documentation for manual adjustments. The Executive Director and Finance Manager are responsible for this corrective action.

Categories

Allowable Costs / Cost Principles

Programs in Audit

ALN Program Name Expenditures
75.936 HEAD START $184,215