FAC Explorer

Finding 1096099 (2024-001)

Significant Deficiency Repeat Finding
Requirement
I
Questioned Costs
-
Year
2024
Accepted
2025-01-17
Audit: 338735
Organization: Energetics Technology Center Inc. (MD)
Auditor: Forvis Mazars LLP

AI Summary

  • Core Issue: The Organization has a procurement policy but is not consistently following it, leading to potential noncompliance with federal procurement standards.
  • Impacted Requirements: Compliance with 2 CFR 200.318 through 200.326 is at risk, which could affect eligibility for federal funding and result in questioned costs.
  • Recommended Follow-Up: Update the procurement policy to align with current operations and ensure all practices meet federal standards; document compliance for existing vendors.

Finding Text

Procurement Suspension & Debarment Significant Deficiency in Internal Control over Compliance Research and Development Cluster Criteria: Non-federal entities other than states must follow the procurement standards set out at 2 CFR 200.318 through 200.326. They must use their own documented procedures, which reflect applicable state and local laws and regulations, provided that the procurement standards conform to the applicable federal statutes and the procurement requirements identified in 2 CFR part 200. Condition: The Organization has a procurement policy in place; however, the Organization is not consistently following the procurement policy. During the period of the contracts with these provisions, the Organization did not have a control structure in place to monitor compliance with procurement requirements. Consequently, for one (1) of six (2) contracts tested, the procurement policy was not followed and no documentation to reflect compliance with Uniform Guidance requirements related to procurement could be provided. Cause: The procurement policy retained by the Organization has not been updated to conform with the Organization’s current operations. Effect or potential effect: The Organization could become noncompliant with the requirements of the Uniform Guidance, resulting in future findings and questioned costs related to dollar amounts being expended to vendors. Additionally, the Organization could become ineligible to receive funds from federal entities or may have to issue refunds to federal entities. Questioned costs: None. Context: Our sample was not intended to be statistically valid. Recommendation: The Organization updated its procurement policy to reflect current operations, but did not go back and document procurement compliance against existing vendors. The Organization should review the current procurement operations in conjunction with the review of the procurement policies to ensure that all practices and policies conform to the standards promulgated by the CFR. Views of responsible officials and planned corrective actions: Management's response is reported in "Management's Views and Corrective Action Plan" included at the end of this report. Identification of prior year finding: 2023-005

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 519641 2024-001
    Significant Deficiency Repeat
  • 519642 2024-001
    Significant Deficiency Repeat
  • 519643 2024-001
    Significant Deficiency Repeat
  • 519644 2024-001
    Significant Deficiency Repeat
  • 519645 2024-001
    Significant Deficiency Repeat
  • 519646 2024-001
    Significant Deficiency Repeat
  • 519647 2024-001
    Significant Deficiency Repeat
  • 519648 2024-001
    Significant Deficiency Repeat
  • 519649 2024-001
    Significant Deficiency Repeat
  • 519650 2024-001
    Significant Deficiency Repeat
  • 519651 2024-001
    Significant Deficiency Repeat
  • 519652 2024-001
    Significant Deficiency Repeat
  • 519653 2024-001
    Significant Deficiency Repeat
  • 519654 2024-001
    Significant Deficiency Repeat
  • 519655 2024-001
    Significant Deficiency Repeat
  • 519656 2024-001
    Significant Deficiency Repeat
  • 519657 2024-001
    Significant Deficiency Repeat
  • 519658 2024-001
    Significant Deficiency Repeat
  • 519659 2024-001
    Significant Deficiency Repeat
  • 519660 2024-001
    Significant Deficiency Repeat
  • 519661 2024-001
    Significant Deficiency Repeat
  • 519662 2024-001
    Significant Deficiency Repeat
  • 519663 2024-001
    Significant Deficiency Repeat
  • 519664 2024-001
    Significant Deficiency Repeat
  • 519665 2024-001
    Significant Deficiency Repeat
  • 1096083 2024-001
    Significant Deficiency Repeat
  • 1096084 2024-001
    Significant Deficiency Repeat
  • 1096085 2024-001
    Significant Deficiency Repeat
  • 1096086 2024-001
    Significant Deficiency Repeat
  • 1096087 2024-001
    Significant Deficiency Repeat
  • 1096088 2024-001
    Significant Deficiency Repeat
  • 1096089 2024-001
    Significant Deficiency Repeat
  • 1096090 2024-001
    Significant Deficiency Repeat
  • 1096091 2024-001
    Significant Deficiency Repeat
  • 1096092 2024-001
    Significant Deficiency Repeat
  • 1096093 2024-001
    Significant Deficiency Repeat
  • 1096094 2024-001
    Significant Deficiency Repeat
  • 1096095 2024-001
    Significant Deficiency Repeat
  • 1096096 2024-001
    Significant Deficiency Repeat
  • 1096097 2024-001
    Significant Deficiency Repeat
  • 1096098 2024-001
    Significant Deficiency Repeat
  • 1096100 2024-001
    Significant Deficiency Repeat
  • 1096101 2024-001
    Significant Deficiency Repeat
  • 1096102 2024-001
    Significant Deficiency Repeat
  • 1096103 2024-001
    Significant Deficiency Repeat
  • 1096104 2024-001
    Significant Deficiency Repeat
  • 1096105 2024-001
    Significant Deficiency Repeat
  • 1096106 2024-001
    Significant Deficiency Repeat
  • 1096107 2024-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
12.RD Basic Scientific Research - Pia Support $2.88M
12.RD S&t Awareness $2.62M
12.RD Basic and Applied Scientific Research - Ihd - Workforce Devel $2.51M
12.RD Basic and Applied Scientific Research - Ihd - Mantech $1.74M
12.RD Basic and Applied Scientific Research - Ihd - McKinsey Uav Std $1.45M
12.RD Md&i Follow on Optyrs $1.15M
12.RD Basic Scientific Research - Best Start $560,214
12.RD Basic Scientific Research - Robomasters $447,278
12.RD Ihd Mems Oy2 $355,707
12.RD Basic Scientific Research - Ras $348,020
12.RD Basic and Applied Scientific Research - Ihd - Epic & Wargaming $316,208
12.RD Basic and Applied Scientific Research - Ihd - Adv Welding Eft $260,866
12.RD Basic and Applied Scientific Research - Ihd - Stem $238,253
12.RD Basic and Applied Scientific Research - Ihd - McKinsey Pier Ne $199,660
12.RD Air Force Defense Research Sciences Program $175,753
12.RD Ihd Mems Oy1 $116,555
12.RD Basic and Applied Scientific Research - Ihd - Campaign Plan $115,079
12.RD Basic and Applied Scientific Research - Ihd - Energy $110,849
12.RD Basic and Applied Scientific Research - Ihd - Icam Critical Ch $97,361
12.RD Basic and Applied Scientific Research - Ihd - Adv Manufacturing $95,589
12.RD Basic Scientific Research - Pia/atlas Support $83,967
12.RD Basic Scientific Research - Cyber Sync Ed $18,413
12.RD Basic and Applied Scientific Research - Ihd - Propulsor Scanners $432
12.RD Basic Scientific Research - Graces Quarters $-7,540
12.RD Basic and Applied Scientific Research - Ihd - Tech Inst Sbir $-9,103