Finding 975416 (2023-002)

Significant Deficiency
Requirement
I
Questioned Costs
-
Year
2023
Accepted
2024-05-30

AI Summary

  • Core Issue: The organization failed to document the justification for a single source procurement, which is a requirement under the Uniform Guidance.
  • Impacted Requirements: Compliance with procurement documentation standards is essential to ensure eligibility for federal funding.
  • Recommended Follow-Up: Ensure adherence to procurement policies and maintain proper documentation; corrective actions are planned to be completed by December 31, 2024.

Finding Text

Federal Agency: U.S. Department of Defense Federal Program Name or Cluster: Research and Development Cluster Assistance Listing Number: 12.RD Federal Award Identification Number and Year: SP4701-20-C-0076 Pass-Through Agencies: N/A Pass-Through Number: N/A Award Period: September 23, 2020 through April 30, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: Under the Uniform Guidance, organizations are required to document the basis for their procurement. For a single source procurement item tested, the Organization could not support how this procurement met the requirements for a single source procurement. Condition: For 1 of 6 procurements selected, the Organization could not support how this procurement met the requirements for a single source procurement. Questioned Costs: None Context: For 1 of 6 procurements selected, which was a single source procurement transaction, the Organization could not support how this procurement met the requirements for a single source procurement. Cause: Unknown Effect: The possible receipt of federal funds or assistance by an ineligible contractor. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the Organization follow the current policies and procedures over covered transactions and to maintain supporting documentation of the process. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. The Society has reviewed the procurement policy with staff, emphasized the importance of following, and will ensure that adequate documentation is retained. Name of the contact person responsible for corrective action: Kelly Moritz, Vice President of Finance and Contracts. Planned completion date for corrective action plan: December 31, 2024

Categories

Procurement, Suspension & Debarment Eligibility HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 398972 2023-001
    Significant Deficiency
  • 398973 2023-001
    Significant Deficiency
  • 398974 2023-002
    Significant Deficiency
  • 975414 2023-001
    Significant Deficiency
  • 975415 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
12.RD Steel Technology Advanced Research $4.52M
12.RD Steel Performance Initiative $2.22M
12.RD Innovative Casting Technologies $202,651
12.800 Air Force Defense Research Sciences Program $20,000
12.RD Casting Procurement Readiness and Acquisition Improvement Through Cast-It Major Subordinate Command Support $3,606