Audit 405946

Finding 2025-002 – Cash Collateralization (Repeat Finding 2024-004) Criteria: Uniform Guidance 2 CFR, Part §200.305(b)(7) requires advance payments of Federal funds to be deposited and maintained in insured accounts whenever possible. Condition: During our review of the Coalition’s cash, it was noted that as of September 30, 2025, they have not collateralized cash balances in excess of the amounts insured by the Federal Despot Insurance Corporation. Cash balances of $510,432 were uninsured at September 30, 2025. Unearned revenue was reported at $7,516,280 which includes advance payments of Federal funds. Questioned Costs: None. Cause: The Coalition has not entered into a cash collateralization agreement with their financial institution. Effect: The Coalition is not in compliance with Uniform Guidance 2 CFR, Part §200.305(b)(7) as not all cash balances received in advance from the funding agency were adequately insured or collateralized and were exposed to custodial credit risk in the event of a bank failure. Recommendation: We recommend the Coalition discuss with their financial institution about insured cash sweep services or certificate of deposit account registry services. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.