Finding 1229554 (2024-004)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-09-11
Audit: 410855
Organization: Robonation Inc. (VA)

AI Summary

  • Core Issue: RoboNation failed to submit its Single Audit reporting package and Data Collection Form on time, missing the September 30, 2024 deadline by 17 months.
  • Impacted Requirements: This non-compliance with 2 CFR 200.512 affects the timely oversight of Federal awards and increases the risk of sanctions from Federal agencies.
  • Recommended Follow-Up: Implement procedures to monitor audit deadlines and create a formal timeline for financial statement preparation and submission to ensure compliance with reporting requirements.

Finding Text

Finding: 2024-004 Timely Submission of the Data Collection Form (DCF) to the Federal Audit Clearinghouse Federal Agency(ies): United States Department of Defense Federal Program(s): Research and Development Cluster Assistance Listing Number(s): 12.300, 12.330 Pass-through Entity (if applicable): Direct awards and pass-through awards from RTI International and Greensight, Inc. Award Identification Number and Year: Various Criteria or Specific Requirement (Including Statutory, Regulatory, or Other Citation): Pursuant to 2 CFR 200.512, a non-Federal entity that expends $750,000 or more in Federal awards during its fiscal year is required to submit the Single Audit reporting package, including the Data Collection Form (DCF), to the Federal Audit Clearinghouse (FAC) within the earlier of 30 calendar days after receipt of the auditor's reports or nine months after the end of the audit period. For the fiscal year ended December 31, 2023, the Organization was required to submit its reporting package and Data Collection Form no later than September 30, 2024. Condition: RoboNation did not timely submit its Single Audit reporting package and Data Collection Form for the fiscal year ended December 31, 2023. The reporting package was not submitted to the Federal Audit Clearinghouse until March 6, 2026, approximately 17 months after the required filing deadline of September 30, 2024. In addition, because the fiscal year 2023 audit was not completed in a timely manner, fieldwork for the fiscal year 2024 Single Audit was not scheduled to begin until after the September 30, 2025 filing deadline applicable to the fiscal year ended December 31, 2024. Cause: RoboNation did not maintain effective controls to monitor and ensure timely completion of the annual Single Audit process and submission of required reporting to the Federal Audit Clearinghouse. Specifically, procedures were not in place to monitor filing deadlines, coordinate audit completion activities, and ensure that required Federal reporting was submitted within the timeframe prescribed by Uniform Guidance. Effect or Potential Effect: RoboNation was not in compliance with the reporting requirements of Uniform Guidance. Untimely submission of the Single Audit reporting package may limit the ability of Federal agencies and pass-through entities to perform timely oversight of Federal awards and increases the risk of sanctions or additional monitoring by Federal awarding agencies. Questioned Costs: N/A Context: RoboNation was required to submit one Data Collection Form and reporting package related to its fiscal year ended December 31, 2023. The submission was made approximately 17 months after the required deadline. Identification as a Repeat Finding, if Applicable: No Recommendation: We recommend that management implement procedures to monitor all Single Audit reporting deadlines and establish a formal timeline for financial statement preparation, audit completion, review, and submission of the reporting package to the Federal Audit Clearinghouse. Management should periodically monitor progress against these deadlines throughout the year to ensure compliance with Uniform Guidance reporting requirements.

Corrective Action Plan

Views of Responsible Officials: Upon assuming financial leadership in 2026, the new VP of Finance inherited the 2023 audit in a state of significant delay. The commencement of the 2023 audit was delayed due to the backlog of incomplete prior year audits that required resolution before the current year engagement could begin, RoboNation had also transitioned to a new audit firm for the 2023 audit, the compound effect contributed to extended timelines and completion delays. Management has implemented the following corrective actions: RoboNation has restored its relationship with its previous audit firm, which has enabled more efficient audit execution and improved communication. The 2023 audit was completed in early 2026, and the 2024 audit was completed on an accelerated timeline. Timelines have been discussed and agreed with the auditors and management for the 2025 audit which positions RoboNation to return to compliance with Federal reporting deadlines. The audit is targeted for completion by September 30, 2026, placing the Data Collection Form submission well within the required deadline. Additionally, management is implementing standardized monthly reconciliation procedures, formalized account close processes, and enhanced financial reporting capabilities that will enable future audits to be executed more efficiently. RoboNation is targeting completion of the 2026 audit in Spring 2027, which will establish a sustainable, predictable audit cadence aligned with Federal compliance requirements.

Categories

Reporting Subrecipient Monitoring

Other Findings in this Audit

  • 1229545 2024-003
    Material Weakness Repeat
  • 1229546 2024-004
    Material Weakness Repeat
  • 1229547 2024-003
    Material Weakness Repeat
  • 1229548 2024-004
    Material Weakness Repeat
  • 1229549 2024-003
    Material Weakness Repeat
  • 1229550 2024-004
    Material Weakness Repeat
  • 1229551 2024-003
    Material Weakness Repeat
  • 1229552 2024-004
    Material Weakness Repeat
  • 1229553 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
12.300 BASIC AND APPLIED SCIENTIFIC RESEARCH $325,073
12.330 BASIC AND APPLIED SCIENTIFIC RESEARCH $261,011
12.000 Defense STEM Education Consortium $78,941
12.000 Innovative K-12 STEM Education Using Biomimetic Soft Robotics Kits $22,980