Issue: Grant funds for easements were paid directly to the title company and not recorded in the Organization's financial records.
Trend: The pledge receivable is being recorded on a cash basis, which may not reflect the true financial position.
Recommendation: Ensure all grant funds are properly recorded in financial records and consider switching to an accrual basis for better accuracy.
Finding Text
The Organization received grants for the purchase of easements and a long-term pledge receivable. The grant funds were paid directly to the title company on behalf of the Organization and were not recorded by the Organization as part of their financial records. The pledge receivable was being recorded on the cash basis.