Finding 1228419 (2025-005)

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

AI Summary

  • Core Issue: Glide Foundation failed to keep evidence of review and approval for reimbursement requests submitted on November 30, 2024, and June 30, 2025.
  • Impacted Requirements: Compliance with 2 CFR Section 200 §303, which mandates internal controls for federal award management and accurate financial reporting.
  • Recommended Follow-Up: Implement written procedures for reconciling reimbursement requests with records, ensure documented reviews are retained, and submit requests promptly for allowable costs.

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 requests submitted on November 30, 2024 and June 30, 2025, management did not retain evidence of review and approval prior to submission. Questioned Costs: There were no questioned costs identified. Context: We obtained a reporting listing the invoices submitted for reimbursement and reconciled the total amount to the schedule of expenditures of federal and state awards. We selected four of 17 invoices, totaling $44,427. The exception related to the reimbursement submissions tested for this award and indicates that documented supervisory review was not consistently operating over reimbursement requests. 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.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.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Action: Management acknowledges that, for certain reimbursement requests, documentation evidencing review and approval prior to submission was not retained. Management notes, however, that the underlying expenditures included in the reimbursement requests were valid, properly recorded in the general ledger, and supported by appropriate accounting records. No questioned costs were identified, and the amounts requested for reimbursement were consistent with allowable program expenditures. Management believes the condition was limited to documentation of review rather than the absence of an actual review process. Reimbursement requests were prepared using underlying financial records and submitted based on incurred costs; however, evidence of supervisory review was not consistently retained during a period of staffing transition. Upon identification, management evaluated its cash management and drawdown processes and reinforced expectations related to documentation and retention of review and approval. Review and approval of reimbursement requests are now consistently evidenced through electronic or physical sign off, and supporting documentation is maintained in a centralized and accessible manner. In addition, management has reinforced alignment of drawdown activity with underlying accounting records to ensure consistency between reimbursement requests, financial reporting, and the general ledger. Management believes this condition represents a documentation gap during a defined period rather than a systemic breakdown in internal control over compliance. The underlying control activities—preparation of drawdowns based on recorded expenditures and supervisory oversight—were in place and functioning, and the enhancements implemented ensure consistent documentation and retention of those controls going forward. Management will continue to monitor these processes as part of ongoing financial operations to ensure compliance with applicable requirements, including 2 CFR Part 200. Management respectfully notes that this condition was limited to the retention of documentation evidencing review and approval and did not impact the allowability of costs, the accuracy of reimbursement requests, or compliance with program requirements. All expenditures were properly supported and recorded, and no questioned costs were identified.

Categories

Reporting Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1228413 2025-001
    Material Weakness Repeat
  • 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

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