We recommend that Gateway refund $932,607 claimed in unallowable costs related to: (1) indirect costs ($356,121), (2) credits received from vendors ($338,363), (3) equipment that was not purchased in accordance with Federal open competition procurement regulations ($208,600), and (4) use of company vehicles ($29,523). Specifically, Gateway did not adjust its indirect costs claimed based on its provisional rate to reflect its final rate. As a result, Gateway claimed an excess of $356,121 applicable to our audit period. In addition, Gateway received reimbursement checks related to the FCC's E-Rate; however, it did not credit its Head Start grant through cost reductions or cash refunds. Instead, Gateway treated the reimbursements as additional Head Start revenue. As a result, Gateway received $338,363 of funds in excess of its approved Federal awards. Further, in June 2015, Gateway solicited bids for the installation of playground equipment previously purchased with Federal funds. In May 2017, Gateway paid Contractor A $233,600 for the installation and purchase of new playground equipment. This violated the Federal procurement open competition requirement because the June 2015 solicitation did not include supplying new equipment— therefore, the purchase of $208,600 in new playground was not solicited for bids in open competition. Lastly, Gateway included lease payments, gas, and insurance costs related to the use of two company vehicles in its indirect cost pool. However, Gateway did not maintain an adequate level of supporting documentation (e.g., mileage logs) to document that the vehicles were used only for business purposes. As a result, Gateway claimed $29,523 of unallowable costs.