Audit 409657

Finding 2025-003: Unallowable Costs / Cash Management (Material Weakness) Information on the Federal Programs: Assistance Listing Number 98.001 Criteria: According to Uniform Guidance (2 CFR 200.305(b)), internal controls over cash management should ensure that all drawdowns are approved by designated personnel to prevent improper or premature use of Federal funds. Condition: During our review of Federal grant drawdowns, it was noted that several drawdowns were processed without obtaining the required internal approvals as outlined in Astraea's cash management policies and procedures. Cause: Astraea’s cash management procedures were not consistently followed, leading to missed approvals for certain drawdowns. Effect: Drawdowns without proper internal approval increase the risk of non-compliance with Federal cash management requirements and could result in unauthorized or inaccurate fund usage. Questioned Costs: None noted. Identification as a Repeat Finding, if Applicable: Finding 2024-004 Recommendation: Astraea should reinforce cash management controls by ensuring all Federal drawdowns obtain the appropriate internal approvals before processing. This can be achieved by implementing a checklist or automated workflow to verify compliance with approval requirements.

Finding 2025-004: Late Submission of the Data Collection Form (Significant Deficiency) Information on the Federal Programs: Assistance Listing Number 98.001 Criteria: In accordance with 2 CFR §200.512, the auditee is required to submit the reporting package and Data Collection Form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor’s reports or nine months after the end of the audit period. Condition: Astraea did not submit its Data Collection Form and reporting package to the Federal Audit Clearinghouse within the required timeframe. Cause: The late submission of the Data Collection Form was primarily the result of delays in completing the audit, which were caused by financial reporting issues identified during the audit process (See Finding 2025-001). These issues required additional time for management to analyze, correct, and finalize the underlying financial information. Effect: Failure to submit the Data Collection Form timely resulted in noncompliance with Uniform Guidance reporting requirements and may impact federal oversight and monitoring. Questioned Costs: None noted. Identification as a Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: We recommend management strengthen its financial reporting processes and related internal controls to ensure accurate and timely preparation of financial information. Improving the timeliness and reliability of financial reporting will help facilitate a more efficient audit process and support timely submission of the Data Collection Form and reporting package in accordance with Uniform Guidance requirements.