Finding Text
Programs: All federal and state programs
Condition: During the current year, rent expense allocations did not agree with the approved cost
allocation schedule that was effective for the fiscal year.
Criteria: The Federation has approved cost allocation tables for rent expenses that need to be followed
to allocate expenses between the programs.
Cause: The error was caused due to a clerical error in the entering of the allocation.
Effect: The result is an over allocation to Nutrition Program, Infant and Toddler Program and Headstart
program, and under allocation the Barrio Nutrition Program and Barrio Child Care Center Program. No
adjustments were made to the claims that were reported to these funding agencies after the findings.
Questioned Costs – The Federation has the following questioned costs:
• Nutrition Program - $1,824 of known rent expense that was over-allocated to the program.
• Headstart - $402 of known rent expense that was over-allocated to the program.
• Barrio Nutrition - $853 of known rent expense that was under-allocated to the program.
• Barrio Child Care Center - $385 of known rent expense that was under-allocated to the program.
• Infant Toddler Program - $2,985 of known rent expense that was over-allocated to the program.
Recommendation – We recommend that the cost allocations should be reviewed more carefully to ensure
accuracy and to avoid clerical errors.
Views of the responsible official and planned corrective action: The Federation agrees with the finding
and will adhere to the planned corrective action plan shown on page 47.