Foundation:Gentoo Foundation Finances FY2007

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Financial statements of Gentoo Foundation Inc., FY2007

Period 2006/7
Period-Start 2006/07/01
Period-Ending 2007/06/30
Prepared-by robbat2
As-of 2021/03/11 (rev b7d87d69e5d2c63a5433947b463d51128b057107)

Disclaimers: Year-specific

  • Large Donations (>$1k):
    • 2006/07/xx: $5000

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

Statement of financial position

       USD 34,423.21  Assets
         USD -733.75    Accumulated-Depreciation:Computers
         USD -480.20      Dev
         USD -231.26        Purchased_GDS5_200506
          USD -38.17        Purchased_GDS5_200508
         USD -208.55        Purchased_GDS5_200606
           USD -2.21        Purchased_GDS5_200607
         USD -253.55      Infra
          USD -32.25        Purchased_GDS5_200606
         USD -221.30        Purchased_GDS5_200705
        USD 8,476.18    Bank:NetBank
        USD 5,444.26    Capital:Computers
          USD 943.29      Dev
          USD 351.46        Purchased_GDS5_200506
           USD 62.58        Purchased_GDS5_200508
          USD 485.00        Purchased_GDS5_200606
           USD 44.25        Purchased_GDS5_200607
        USD 4,500.97      Infra
           USD 75.00        Purchased_GDS5_200606
        USD 4,425.97        Purchased_GDS5_200705
       USD 21,236.52    Paypal
--------------------
       USD 34,423.21
       USD 34,423.21  NetAssets:RetainedEarnings
       USD -3,175.73    Expenses
       USD 37,598.94    Income
--------------------
       USD 34,423.21

Remarks

  • See: [AC-NPO-2]


Statement of Activities

       USD 12,411.55  Income:Donations:Cash
        USD 1,358.00  Expenses
          USD 532.71    Depreciation
          USD 310.94    Events
          USD 514.35    Fees:Paypal
--------------------
        USD 1,358.00

Remarks

  • See: [AC-NPO-2]


TODO: Statement of Functional Expenses

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

Program: PR

          USD 310.94  Expenses:Events

Program: NONE

        USD 1,047.06  Expenses
          USD 532.71    Depreciation
          USD 514.35    Fees:Paypal
--------------------
        USD 1,047.06

TODO: Statement of Cash Flows

  • Operating Activities
  • Investing Activities
  • Financing Activities

Capital Assets

Statement of Position

               7 pcs  Virtual:Assets:Capital:Computers
               5 pcs    Dev
               1 pcs      Purchased_GDS5_200506
               1 pcs      Purchased_GDS5_200508
               2 pcs      Purchased_GDS5_200606
               1 pcs      Purchased_GDS5_200607
               2 pcs    Infra:Purchased_GDS5_200705
--------------------
               7 pcs

Change of Position

2006/07/18       TODO       (Virtual:Assets:Capital:Computers:Dev:Purchased_GDS5_200607)              1 pcs              1 pcs
2007/05/26       Server: vulture.g.o       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_200705)              1 pcs              2 pcs
2007/05/26       Server: vulture.g.o       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_200705)              1 pcs              3 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)

Unclosed Expenses


Unclosed Income


TODO: Notes to the Financial Statements

  • (TODO FASB 2016-14 requirements)

Further Remarks

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: Assets:Capital:{asset-code}
    • Depreciation Contra-asset: Assets:Accumulated-Depreciation:{asset-code}.
    • Inventory tracking: Virtual:Assets:Capital:{asset-code}
  • 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:
    • Assets:Capital:Computers:Infra:Purchased_GDS5_201411:
      • What is it? Computers:Infra tells us it is a computer or parts thereof used by Infra. (Computers:Dev would be used by a Developer)
      • What is the MACRS system & property class life: GDS5 GDS, with a 5-year class life.
      • When was it purchased? 201411
      • What is the depreciation value for this asset? See the Assets:Accumulated-Depreciation:Computers:Infra:Purchased_GDS5_201411 account
      • Is the asset still in use, or has it been disposed of? See the Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201411 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


References