Guidewire Inc.

This is a Massachusetts State Auditor performance audit of Guidewire Inc., a Springfield nonprofit, covering July 1, 2011 through March 31, 2014.

“I am pleased to provide this performance audit of Guidewire Inc.”

The audit looked at whether Guidewire followed the rules tied to its state contracts.

“The purpose of our audit was to determine whether Guidewire complied with laws, regulations, and contract requirements applicable to its state contracts.”

Guidewire serves people with disabilities and mental health needs, so the state had reason to check whether public money and oversight were being handled properly.

“Guidewire is a not-for-profit human-service agency that supports individuals with intellectual disabilities, autism spectrum disorders, and psychiatric conditions.”

For taxpayers and families, the report offers some assurance that the sampled expenses, contract administration, and board oversight met the audit’s standards.

“Were certain expenses, which Guidewire charged against its state contracts, reasonable and allowable?”

The auditor found that Guidewire had reasonable internal controls in the areas reviewed and did not flag major concerns.

“Our audit confirmed that Guidewire has established adequate internal control policies and procedures in the areas reviewed that were related to our audit objectives.”

The draft report was shared with Guidewire leadership for review and comment before the final report was issued.

“At the conclusion of our audit fieldwork, we provided a copy of our draft audit report to the chief executive officer and the chair of the board of directors for review and comments.”

Guidewire had a large loss in fiscal year 2012, then made management and cost changes that helped it post a small profit in fiscal year 2013.

“These changes resulted in year-over-year change in net income of approximately $815,000, from a loss of $709,677 during fiscal year 2012 to an operating profit of $105,376 during fiscal year 2013.”

“Internal controls” means the organization’s rules and procedures for reducing risks like fraud, waste, abuse, and failure to follow requirements.

“Our audit confirmed that Guidewire has established internal control policies and procedures that provide reasonable assurance that organizational objectives and compliance obligations are met and that associated risks such as those for fraud, waste, and abuse are minimized.”