Performance Audit of Incurred Costs – Education Development Center

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Date Issued

Tuesday, June 28, 2022

Submitting OIG

National Science Foundation OIG

Other Participating OIGs

National Science Foundation OIG

Agencies Reviewed/Investigated

National Science Foundation

Report Number

22-1-008

Report Type

Audit

Location

Waltman, MA
United States

Number of Recommendations

Questioned Costs

$88,089

Funds for Better Use

External Entity

Education Development Center

Open Recommendations

This report has 7 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1.1	Yes	$66,270	$0
Resolve the $66,270 in questioned participant support for which EDC has not agreed to reimburse NSF and direct EDC to repay or otherwise remove the sustained questioned costs from its NSF award.
1.2	Yes	$8,375	$0
Direct EDC to provide documentation supporting that it has reimbursed or otherwise credited the $8,375 in questioned participant support, conference, and consultant travel costs for which it has agreed to reimburse NSF.
1.3	Yes	$0	$0
Direct EDC to establish clear guidance regarding the allowable uses of participant support cost funding. This guidance should address how to segregate, identify, and account for costs that are covered with participant support cost funding. Specifically, this guidance should address how EDC verifies it does not use participant support costs to cover non-participant or other unallowable costs, such as costs budgeted for within non-participant support costs budget categories, costs incurred for EDC employees, and expenses associated with no-show participants.
1.4	Yes	$0	$0
Direct EDC to strengthen its administrative and management processes related to the approval of conference registration fees. Updated processes should require EDC to verify that individuals either have dedicated or will be dedicating effort to an NSF award prior to allowing their conference registration fees to be charged to the NSF award.
1.5	Yes	$0	$0
Direct EDC to strengthen its administrative and management processes to ensure advertising costs associated with sponsoring conferences are not charged to federal awards unless specifically approved by the award sponsor.
1.6	Yes	$0	$0
Direct EDC to strengthen its policies and procedures for creating and retaining documentation, including introducing additional controls to help ensure that it appropriately creates and maintains all documentation necessary to support the allowability of costs claimed by consultants. Updated procedures could include: • Requiring consultant agreements to specifically note whether the consultant is permitted to invoice EDC for travel costs incurred as a result of performing the requested consulting services. • Requiring invoice approvers to review consulting agreements to determine the allowability of travel expense reimbursement submitted by consultants prior to approving consultant travel expenses.
3.1	Yes	$0	$0
Direct EDC to strengthen its administrative and management procedures for travel reimbursements to ensure that its employees utilize the Deltek Expense Report Summary for travel reimbursements.