Audit 390659

Federal Agency: U.S. Department of Defense Federal Program Name: Basic and Applied Scientific Research Assistance Listing Number: Research and Development Cluster Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control Over Compliance; Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. All procurement transactions must be conducted in a manner providing full and open competition consistent with the standards set forth in the Uniform Guidance as well as internal policies and procedures. The non-Federal entity must ensure that all prequalified lists of persons, firms, or products which are used in acquiring goods and services are current and include enough qualified sources to ensure open and free competition. Also, the non-Federal entity must not preclude potential bidders from qualifying during the solicitation period. Condition: During our testing, we noted RoboNation did not adequately document the rationale or decision for selecting a vendor in a manner to justify a lack of competition or easily determine which vendor was selected and the basis for that decision. Questioned costs: $34,603 Cause: RoboNation’s internal controls were not properly implemented to ensure that the rationale or decision for selecting a vendor was adequately documented. Context: During our testing, it was noted that 3 out of the 6 items did not have the rationale for selecting the vendor adequately documented. Effect: RoboNation purchases of goods and services could be made above prevailing market rates if the procurement procedures were not followed, and thus, there is a potential that RoboNation will not receive the best value for its purchases. Failure to perform proper procurement procedures could result in disallowance of federal expenditures based on a lack of fair competition. Recommendation: We recommend the RoboNation ensure internal controls in place are properly implemented to adequately document the rationale or decision for selecting a vendor. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Defense Federal Program Name: Basic and Applied Scientific Research Assistance Listing Number: Research and Development Cluster Federal Award Identification Number and Year: Various Award Period: Various Type of Finding: Material Weakness in Internal Control Over Compliance; Other Matter Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires compliance with the provisions of procurement, suspension, and debarment. Non-federal entities are prohibited from contracting with or making subawards under covered transactions that are suspended or debarred. Before entering into a covered transaction, the entity must verify that the contractor is not suspended, debarred, or otherwise excluded from participating in the transaction. Condition: During our testing, we noted RoboNation did follow its internal controls designed to ensure vendors were not suspended or debarred. RoboNation did not retain documentation that the suspension and debarment status of contractors were verified prior to entering into the contract. Questioned costs: $590,065 Context: During our testing, it was noted that all 6 items were not reviewed to ensure the contractor's suspension and debarment status was documented. Cause: RoboNation’s internal controls were not properly implemented to ensure that contractors suspension and debarment status was documented prior to entering into the contract. Repeat Finding: Yes. See prior year finding 2022-003 Recommendation: We recommend RoboNation properly implement controls to ensure an adequate review process is in place to review potential contractors to determine they are not suspended or debarred prior to entering into transactions with contractors. Views of responsible officials: There is no disagreement with the audit finding.