Audit 379642

Significant deficiency in internal controls over compliance related to allowable costs. Federal Agency: U.S. Department of Education Program Titles: EDUCATION INNOVATION AND RESEARCH Assistance Listing Number: 84.411C Award Number: U411C190093 Award Period: October 1, 2019 - September 30, 2024 Criteria 2 U.S. Code of Federal Regulations (CFR) 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards requires that costs must be necessary and reasonable for the performance of the Federal award and allocable under the principles of 2 CFR 200, subpart E. Condition/Context During the testing of allowable costs, there was one payroll instance of twenty-five tested where the incorrect gross wage rate was used to calculate the payroll expense charged to the grant. Upon further review of the cause of this error it was determined that this was an error that had occurred multiple times and resulted in the incorrect amount being charged to the Federal Award. Questioned Costs $702 Cause Code.org's internal controls were not designed to identify and correct errors in the calculation of wages being charged to the Federal award. Effect Based on the exception noted in the operation of internal controls, unallowable costs could be charged to the Federal Award. Repeat Finding This is not a repeat finding. Recommendation We recommend that Code.org perform a periodic review of the salary allocation spreadsheet to ensure gross wage rates used in the calculation match current approved wage rates for each employee. Views of Responsible Official of Auditee Management concurs with the finding and has provided accompanying corrective action plan.