Finding Text
Finding 2023-005: Cash Management (Material Weakness)
Information on the Federal Programs: Assistance Listing Number 98.001
Criteria: According to Uniform Guidance (2 CFR 200.305(b)), Federal funds must be managed in a
way that minimizes the time elapsing between the transfer of funds and the Organization’s
disbursement of those funds for program purposes. Additionally, 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 2022-007
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.