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. 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: RoboNationÂ’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.