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.
Corrective Action Plan
We were aware of the need to reflect grant funds that went directly to others in our internal financial records but missed one of the two that were donated. We also missed one pledge receivable. The grants were appropriately monitored and tracked for compliance and other matters. We plan to now include all funds where we are the recipient (including on-behalf or in-kind and pledges) as appropriate in our revenues and reflect any related receivable and expenditures. We will also identify all federal awards and include in our SEFA on an annual basis.