Finding Text
Similar to many other Nonprofit Organizations, Sierra Institute does not have policies and procedures in place to ensure that complete and accurate financial statements, and footnote disclosures are prepared in accordance with GAAP prior to the annual audit. Management does not complete footnote disclosures for the financial statements or prepare adjusting journal entries to convert the Organization’s cash-basis general ledger to accrual in order to report financial information in accordance with GAAP.
The current accounting system cannot produce meaningful reports to Management and the Board of Directors. To provide the information needed for grant management, the finance office must produce it from customized spreadsheets, which increases the risk of error.
Lastly, the Organization does not record In-Kind revenues and expenses throughout the year