FAC Explorer

Finding 588143 (2023-001)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-02-05
Audit: 15518
Organization: Parallax Advanced Research Corporation (OH)
Auditor: Rea & Associates INC

AI Summary

  • Core Issue: The Organization lacks proper documentation for payment terms exceeding 30 days, violating FAR requirements for cost-reimbursement contracts.
  • Impacted Requirements: Payments to vendors were made later than 30 days after reimbursement requests, affecting compliance with federal regulations.
  • Recommended Follow-Up: Review and update procedures to ensure documentation aligns with payment terms and compliance standards.

Finding Text

Criteria or Specific Requirement: For cost-reimbursement contracts under the Federal Acquisition Regulations (FAR), 52.216-7(b)(1), with relation to supplies and services purchased for use on the contract, “ordinary course of business” would be in accordance with the terms and conditions of a subcontract or invoice, and ordinarily within 30 days of the request to the federal government for reimbursement. Condition: The Organization did not have adequate documentation of extended payment terms in the ordinary course of business, and exceeded the typical 30 days. Cause: The Organization has been extending terms and conditions of payments of vendors beyond 30 days from the date of reimbursement request, as necessary for overall operations and its cash management needs. Effect: Subset of vendors were paid later than 30 days from the date of the request for reimbursement from the government. Questioned costs: None. Context: It was noted that the Organization requested reimbursement from the federal agency for 20 expenditures; however, the subsequent payment to the vendor for those expenditures was not within 30 days of the requested reimbursement. While there may have be terms and conditions agreed to with the vendor, that exceed the 30 days of the request to the federal government for reimbursement, there was no formal documentation of these matters. We did observe that payment was made within 30 days of receipt of the cash from the federal agency, for seven of the 20 expenditures. Recommendation: The Organization should review its procedures and update as necessary. Views of responsible officials: The Organization will consider the observation and the risks associated, to determine action plan to address the finding. See corrective action plan.

Categories

Cash Management Procurement, Suspension & Debarment

Other Findings in this Audit

  • 11669 2023-001
    Significant Deficiency Repeat
  • 11670 2023-001
    Significant Deficiency Repeat
  • 11671 2023-001
    Significant Deficiency Repeat
  • 11672 2023-001
    Significant Deficiency Repeat
  • 11673 2023-001
    Significant Deficiency Repeat
  • 11674 2023-001
    Significant Deficiency Repeat
  • 11675 2023-001
    Significant Deficiency Repeat
  • 11676 2023-001
    Significant Deficiency Repeat
  • 11677 2023-001
    Significant Deficiency Repeat
  • 11678 2023-001
    Significant Deficiency Repeat
  • 11679 2023-001
    Significant Deficiency Repeat
  • 11680 2023-001
    Significant Deficiency Repeat
  • 11681 2023-001
    Significant Deficiency Repeat
  • 11682 2023-001
    Significant Deficiency Repeat
  • 11683 2023-001
    Significant Deficiency Repeat
  • 11684 2023-001
    Significant Deficiency Repeat
  • 11685 2023-001
    Significant Deficiency Repeat
  • 11686 2023-001
    Significant Deficiency Repeat
  • 11687 2023-001
    Significant Deficiency Repeat
  • 11688 2023-001
    Significant Deficiency Repeat
  • 11689 2023-001
    Significant Deficiency Repeat
  • 11690 2023-001
    Significant Deficiency Repeat
  • 11691 2023-001
    Significant Deficiency Repeat
  • 11692 2023-001
    Significant Deficiency Repeat
  • 11693 2023-001
    Significant Deficiency Repeat
  • 11694 2023-001
    Significant Deficiency Repeat
  • 11695 2023-001
    Significant Deficiency Repeat
  • 11696 2023-001
    Significant Deficiency Repeat
  • 11697 2023-001
    Significant Deficiency Repeat
  • 11698 2023-001
    Significant Deficiency Repeat
  • 11699 2023-001
    Significant Deficiency Repeat
  • 11700 2023-001
    Significant Deficiency Repeat
  • 11701 2023-001
    Significant Deficiency Repeat
  • 11702 2023-001
    Significant Deficiency Repeat
  • 11703 2023-001
    Significant Deficiency Repeat
  • 11704 2023-001
    Significant Deficiency Repeat
  • 11705 2023-001
    Significant Deficiency Repeat
  • 11706 2023-001
    Significant Deficiency Repeat
  • 11707 2023-001
    Significant Deficiency Repeat
  • 588111 2023-001
    Significant Deficiency Repeat
  • 588112 2023-001
    Significant Deficiency Repeat
  • 588113 2023-001
    Significant Deficiency Repeat
  • 588114 2023-001
    Significant Deficiency Repeat
  • 588115 2023-001
    Significant Deficiency Repeat
  • 588116 2023-001
    Significant Deficiency Repeat
  • 588117 2023-001
    Significant Deficiency Repeat
  • 588118 2023-001
    Significant Deficiency Repeat
  • 588119 2023-001
    Significant Deficiency Repeat
  • 588120 2023-001
    Significant Deficiency Repeat
  • 588121 2023-001
    Significant Deficiency Repeat
  • 588122 2023-001
    Significant Deficiency Repeat
  • 588123 2023-001
    Significant Deficiency Repeat
  • 588124 2023-001
    Significant Deficiency Repeat
  • 588125 2023-001
    Significant Deficiency Repeat
  • 588126 2023-001
    Significant Deficiency Repeat
  • 588127 2023-001
    Significant Deficiency Repeat
  • 588128 2023-001
    Significant Deficiency Repeat
  • 588129 2023-001
    Significant Deficiency Repeat
  • 588130 2023-001
    Significant Deficiency Repeat
  • 588131 2023-001
    Significant Deficiency Repeat
  • 588132 2023-001
    Significant Deficiency Repeat
  • 588133 2023-001
    Significant Deficiency Repeat
  • 588134 2023-001
    Significant Deficiency Repeat
  • 588135 2023-001
    Significant Deficiency Repeat
  • 588136 2023-001
    Significant Deficiency Repeat
  • 588137 2023-001
    Significant Deficiency Repeat
  • 588138 2023-001
    Significant Deficiency Repeat
  • 588139 2023-001
    Significant Deficiency Repeat
  • 588140 2023-001
    Significant Deficiency Repeat
  • 588141 2023-001
    Significant Deficiency Repeat
  • 588142 2023-001
    Significant Deficiency Repeat
  • 588144 2023-001
    Significant Deficiency Repeat
  • 588145 2023-001
    Significant Deficiency Repeat
  • 588146 2023-001
    Significant Deficiency Repeat
  • 588147 2023-001
    Significant Deficiency Repeat
  • 588148 2023-001
    Significant Deficiency Repeat
  • 588149 2023-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
12.615 11186 Apex $10.87M
12.RD 11205 F0002-F0004- Option 1 $8.86M
12.RD 11236 Matrix $4.62M
12.RD 11244 Scepter $2.89M
12.RD 11245 Stat $2.65M
12.RD 11076 Hmt $1.55M
12.RD 11221 Astra-Ist $958,337
12.RD P-202370 $779,176
11.307 Economic Adjustment Assistance $513,418
12.RD 11222 Meta (act 3) $469,070
12.RD 11255 in the Moment $361,121
11.020 Cluster Grants $329,950
43.008 P-402090 $307,284
12.RD 11196 Darpa M2t $300,947
12.RD 11208 F0005 - To4 $275,358
12.RD 11231 Talons $271,280
11.024 Economic Development Administration $250,192
43.RD P-140100 $231,408
12.RD 11248 Geocog $225,720
12.800 P-100460 $215,662
43.RD P-520107 $161,539
43.RD P-520049 $115,857
43.RD P-520110 $111,300
12.RD 11207 Ist Meams $110,033
11.112 International Trade Administration $98,528
43.RD P-520062 $91,651
12.RD 11238 Emss $85,456
43.008 P-402080 $80,803
43.RD P-520156 $74,015
43.RD P-520048 $60,221
12.RD P-202373 $54,864
59.058 Federal and State Technology Partnership Program $53,790
43.RD P-100500 $41,873
12.910 11122 Leap $39,962
12.RD P-100612 $34,120
12.600 Ohio Defense Manufacturing Support Community $24,751
43.001 P-370047 $10,005
43.001 P-370046 $5,112
43.001 P-370044 $4,211
12.RD P-100458 $-399
43.012 P-370045 $-863
12.RD P-400331 $-1,080
12.RD P-100981 $-1,735
43.RD P-390100 $-4,257
12.RD 11210 Admire $-18,383