Finding Text
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: RoboNationÂ’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.