FAC Explorer

Finding 1228416 (2025-004)

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

AI Summary

  • Core Issue: Glide Foundation failed to retain evidence of review and approval for a reimbursement request submitted on January 28, 2025.
  • Impacted Requirements: Compliance with 2 CFR Section 200 §303, which mandates internal controls for Federal award management and timely submission of drawdown requests.
  • Recommended Follow-Up: Implement written procedures for reconciling reimbursement requests with records, ensure documented review and approval, and submit requests promptly for actual costs incurred.

Finding Text

Criteria: The 2 CFR Section 200 §303 requires that non-Federal entities receiving Federal awards establish and maintain internal control designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Related to these requirements, Glide Foundation should submit drawdown requests to the Department of Health and Human Services throughout the fiscal year as costs are incurred and Federal Financial Reports should agree with those drawdown requests and supporting accounting records. Condition: We noted that for the reimbursement request submitted on January 28, 2025, management did not retain evidence to support the review and approval of the reimbursement request prior to submission.Recommendation: Establish written procedures requiring reconciliation of each reimbursement request to the general ledger and supporting invoices, payroll, or other source records; retain evidence of review and approval; and submit requests on a timely basis for actual allowable costs incurred. Repeat finding: This is not a repeat finding. Questioned Costs: There were no questioned costs identified. Context: We tested one reimbursement requests totaling $259,886 submitted during the fiscal year for the Department of Health and Human Services award and an exception. The exception indicates that the control requiring documented supervisory review over reimbursement requests was not consistently operating throughout the audit period. We noted there was only one reimbursement request submitted for award CE1HS52473 in 2025. Cause: Documented review procedures for reimbursement requests were not consistently implemented, and supervisory oversight over the reimbursement process was insufficient. Effect: Without documented review and approval, GLIDE cannot demonstrate that reimbursement requests were complete, accurate, supported by underlying records, and submitted in accordance with award requirements. This increases the risk of inaccurate financial reporting and unsupported reimbursement requests.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that documentation supporting the review and approval of a reimbursement request was not retained, and that drawdown activity during the period did not consistently align with the timing of incurred expenditures. Management notes that this condition was identified during a period of staffing transition and resulted in a lapse in documentation and timeliness, rather than an absence of underlying financial controls. Management further notes that the expenditure underlying the reimbursement request were valid, properly recorded in the general ledger, and supported by appropriate accounting records. The condition was limited to documentation of review and the timing of drawdown activity, and no questioned costs were identified. Upon identification, management evaluated and reinforced its cash management and drawdown processes. Drawdown requests are now consistently prepared based on underlying accounting records and aligned with incurred expenditures. A formal review and approval step has been implemented and is now required prior to submission, with evidence of review retained electronically or physically for audit purposes. In addition, management has strengthened oversight of drawdown timing to better align reimbursements with the period in which costs are incurred, reducing the risk of delayed submissions and ensuring consistency with related financial reporting. Management believes this condition represents a lapse in execution and documentation during a defined period rather than a systemic breakdown in control design. Enhancements implemented have addressed the identified gaps and established a more consistent and well documented process for drawdown preparation, review, and submission in accordance with applicable requirements, including 2 CFR Part 200.

Categories

Cash Management Reporting Internal Control / Segregation of Duties Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1228413 2025-001
    Material Weakness Repeat
  • 1228414 2025-002
    Material Weakness Repeat
  • 1228415 2025-003
    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