FAC Explorer

Finding 1228413 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-08-31
Audit: 410100
Organization: Glide Foundation (CA)
Auditor: BAKER TILLY US LLP

AI Summary

  • Core Issue: GLIDE lacks formal evidence of contract review and approval, and does not have a compliant procurement policy.
  • Impacted Requirements: Noncompliance with federal procurement standards outlined in 2 CFR Sections 200.318-326.
  • Recommended Follow-Up: Update the procurement policy, train staff, and ensure complete documentation for each purchase, including bids and approval evidence.

Finding Text

Criteria: Nonfederal entities other than States, including those operating Federal programs as subrecipients of States, must follow the procurement standards set out at 2 CFR Sections 200.318 through 200.326. They must use their own documented procurement procedures, which reflect applicable state and local laws and regulations, provided that the procurements conform to applicable Federal statutes and the procurement requirements identified in 2 CFR Part 200. Condition: GLIDE did not maintain formal evidence of review and approval of contracts subject to procurement standards. In addition, GLIDE did not have a procurement policy in place that conformed to the federal procurement requirements. Questioned Costs: There were no questioned costs identified.Recommendation: Update the written procurement policy to align with applicable federal requirements, train responsible personnel, and require a complete procurement file for each covered purchase, including the procurement method, quotes or bids as applicable, evaluation and selection rationale, conflict-of-interest considerations, and evidence of approval. Repeat finding: This is not a repeat finding. Context: We obtained a population of contracts exceeding $10,000 and selected two of the four contracts for testing, totaling $97,430. GLIDE provided supporting documentation demonstrating that multiple bids were obtained and evaluated for the contracts selected. However, management was unable to provide documentation evidencing the formal review and approval of contracts subject to procurement standards. Cause: Procurement controls were not effectively designed and implemented. Management did not ensure that procurement procedures were aligned with federal requirements or that supporting documentation to evidence review and approval was retained in the procurement file. Effect: Without documentation of approval, GLIDE cannot demonstrate controls were operating effectively to ensure compliance with federal procurement standards, including full and open competition and required procurement history documentation.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: Management confirms that the procurement activities themselves were completed only after the appropriate review and approval processes had occurred; however, sufficient supporting documentation evidencing those procedures could not be located during the audit process. This condition occurred during a period of significant staffing transition and turnover, which contributed to inconsistencies in documentation retention and adherence to established federal procurement documentation requirements. Management recognizes that internal controls and compliance procedures must remain effective regardless of personnel changes and accepts responsibility for strengthening these controls to ensure consistent compliance. Upon identification of this issue, management conducted an assessment of the underlying procurement and documentation processes and determined that enhancements were necessary to improve accountability, standardize documentation practices, strengthen supervisory review, and reinforce staff training related to federal procurement requirements. Management emphasizes that the deficiency related to the retention and completeness of procurement documentation, rather than to the execution of the procurement process itself. Management believes the evaluation, selection, and approval activities were conducted in accordance with applicable federal procurement guidelines and standards. Management is currently reviewing procurement policies and procedures to ensure alignment with federal requirements related to quotations, vendor evaluation and selection, approval protocols, and document retention. Additional corrective actions include reinforcing documentation standards, clarifying approval responsibilities, and implementing enhanced monitoring procedures to help prevent recurrence.

Categories

Procurement, Suspension & Debarment

Other Findings in this Audit

  • 1228414 2025-002
    Material Weakness Repeat
  • 1228415 2025-003
    Material Weakness Repeat
  • 1228416 2025-004
    Material Weakness Repeat
  • 1228417 2025-005
    Material Weakness Repeat
  • 1228418 2025-003
    Material Weakness Repeat
  • 1228419 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
93.493 CONGRESSIONAL DIRECTIVES $259,886
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $134,832
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $125,000
93.788 OPIOID STR $61,875
10.569 EMERGENCY FOOD ASSISTANCE PROGRAM (FOOD COMMODITIES) $60,773
10.558 CHILD AND ADULT CARE FOOD PROGRAM $40,618
93.958 BLOCK GRANTS FOR COMMUNITY MENTAL HEALTH SERVICES $32,207
97.024 EMERGENCY FOOD AND SHELTER NATIONAL BOARD PROGRAM $15,000
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $9,917
93.940 HIV PREVENTION AND SURVEILLANCE ACTIVITIES-HEALTH DEPARTMENT BASED $6,250
93.778 GRANTS TO STATES FOR MEDICAID $748
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $456