Foundation:Gentoo Foundation Finances FY2019

= Financial statements of Gentoo Foundation Inc., FY2019 =

Disclaimers: Year-specific

 * Income:Programs:GSOC: GSOC2018: 2 students ($1000), mentor travel reimbursement ($2200), total $3700.
 * Large Donations (>$1k):
 * 2018/08/xx: $5000 (Gavin Ferris)
 * 2019/01/xx: $2400

Disclaimers: Common

 * The following statements have NOT been reviewed by a CPA
 * The following statements represent a work-in-progress, with some known concerns:
 * Data capture:
 * In-Kind Donations has minimally started.
 * Donor Restrictions has NOT been started, but is expected to have minimal impact (see further remarks).
 * Incomplete historical capture due to lack of records
 * NetBank records are considered lost and unrecoverable
 * Depreciation: See seperate Concerns section under Further Remarks

Remarks

 * See: [AC-NPO-2]

Remarks

 * See: [AC-NPO-2]

TODO: Statement of Functional Expenses

 * See: [AC-NPO-4]
 * TODO: reformat to columar style with TOTALS

Program: Dev
USD 358.00 Expenses:GSOC:Mentor-Travel-Reimbursement

Program: Foundation
USD 561.00 Expenses USD 350.00   Accounting USD 171.00   Mail USD 40.00   Phone

USD 561.00

Program: GSOC
USD 846.99 Expenses:GSOC:Mentor-Travel-Reimbursement

Program: Infra
USD 2,041.11 Expenses USD 1,995.23   Hosting USD 104.36     Amazon USD 1,890.87     Hetzner USD 6.99   Infra:Parts USD 38.89   Services

USD 2,041.11

Program: PR
USD 499.01 Expenses:Events

Program: NONE
USD 3,951.05 Expenses USD 3,218.21   Depreciation USD 732.84   Fees:Paypal

USD 3,951.05

TODO: Statement of Cash Flows

 * Operating Activities
 * Investing Activities
 * Financing Activities

Statement of Position
47 pcs Virtual:Assets:Capital 2 pcs   Banners 1 pcs     Purchased_GDS7_200711 1 pcs     Purchased_GDS7_200801 45 pcs   Computers 15 pcs     Dev 1 pcs       Purchased_GDS5_200506 1 pcs       Purchased_GDS5_200508 2 pcs       Purchased_GDS5_200606 1 pcs       Purchased_GDS5_200607 1 pcs       Purchased_GDS5_200803 1 pcs       Purchased_GDS5_200904 1 pcs       Purchased_GDS5_200910 1 pcs       Purchased_GDS5_201001 1 pcs       Purchased_GDS5_201004 1 pcs       Purchased_GDS5_201012 1 pcs       Purchased_GDS5_201106 1 pcs       Purchased_GDS5_201107 1 pcs       Purchased_GDS5_201205 1 pcs       Purchased_GDS5_201307 30 pcs     Infra 2 pcs       Purchased_GDS5_200705 1 pcs       Purchased_GDS5_200905 2 pcs       Purchased_GDS5_201003 1 pcs       Purchased_GDS5_201107 1 pcs       Purchased_GDS5_201110 6 pcs       Purchased_GDS5_201111 2 pcs       Purchased_GDS5_201112 3 pcs       Purchased_GDS5_201202 1 pcs       Purchased_GDS5_201206 2 pcs       Purchased_GDS5_201411 1 pcs       Purchased_GDS5_201412 2 pcs       Purchased_GDS5_201502 1 pcs       Purchased_GDS5_201606 2 pcs       Purchased_GDS5_201710 1 pcs       Purchased_GDS5_201803 1 pcs       Purchased_GDS5_201804 1 pcs       Purchased_GDS5_201812

47 pcs

Change of Position
2018/12/14      Server: OpenGear console3.osl.dev.g.o       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201812)              1 pcs              1 pcs

Verification of closed accounts for EOY

 * This section covers any accounts that aren't closed, correctness review (e.g. missing entry in closing transactions)

TODO: Notes to the Financial Statements

 * (TODO FASB 2016-14 requirements)

Contributions

 * FASB 1993-06 / SFAS 116: "Accounting for Contributions Received and Contributions Made"
 * FASB 2018-08: "Clarifying the Scope and the Accounting Guidance for Contributions Received and Contributions Made"
 * FASB ASC 958-605: "Not-for-Profit Entities - Revenue Recognition"
 * This covers how contributions received must be accounted.
 * The Gentoo Infrastructure team recieves contributions in multiple non-cash forms:
 * Contribution of Assets
 * e.g. Hardware donated outright to the Foundation, and held by the Foundation.
 * Contribution of Utilities, covered by SFAS-116, example 9, paragraph 190 & 191
 * e.g. Server rackspace (including electricity & network connectivity)
 * Contribution of Use of Property, covered by SFAS-116, example 10, paragraph 192 & 193.
 * e.g. Use of dedicated servers

Depreciation

 * See https://en.wikipedia.org/wiki/MACRS and [IRS-946] for more info.
 * All relevant accounts are tagged with MACRS, and matching asset codes.
 * Capital value:
 * Depreciation Contra-asset:.
 * Inventory tracking:
 * All assets use the mid-quarter convention to avoid splitting the calculation between property that may use half-year convention vs property that must use the mid-quarter convention.
 * The purchasing year & quarter is derived from the purchase date in the account name.
 * Some assets are retained long past their depreciation period, as they are still functioning fine.
 * Risks & Outstanding Issues:
 * There are no Section 179 elections in place for additional depreciation. This differs from the formal IRS filing, where the depreciation is chosen by the accountant for optimal tax handlng.
 * It is possible that some assets are in the wrong IRS asset class, per [IRS-946] Appendix B where the manner in which property is used can change it's lifecycle.
 * The exact location of non-US assets may impact the depreciation system. This is NOT considered at this time, as minimal assets are outside of the US.
 * Example:
 * What is it?  tells us it is a computer or parts thereof used by Infra. (  would be used by a Developer)
 * What is the MACRS system & property class life:  GDS, with a 5-year class life.
 * When was it purchased?
 * What is the depreciation value for this asset? See the  account
 * Is the asset still in use, or has it been disposed of? See the  account, for quantity greater than zero.
 * Is the asset still in use, or has it been disposed of? See the  account, for quantity greater than zero.

Asset Classes in use
Account                       IRS-Asset-Class     GDS-Class-Life Assets:Capital:Computers:*    00.12               5 Assets:Capital:Banners:*      00.11               7

FASB 2016-14

 * FASB 2016-14 MUST be applied for all fiscal years starting after 2017/12/15, but the standard permits earlier application.
 * The treasurer has elected to apply the changes to ALL financial statements, as none of them have been formally audited at this time.
 * Donor Restrictions
 * The earlier boards did NOT include any formal means for donors to restrict cash donations.
 * Some in-kind donations MAY have usage restrictions (e.g. bandwidth limitations, disclosure limitations), but are not expected to impact the financial statements at this time. This has not yet been confirmed with a CPA that specializes in NPO accounting.
 * FASB 2016-14 changed the classes of Net Assets:
 * Before:
 * Permanantly restricted Net Assets
 * Temporarily restricted Net Assets
 * Unrestricted Net Assets
 * After:
 * Net Assets with Donor Restrictions
 * Net Assets without Donor Restrictions