Foundation:Gentoo Foundation Finances FY2012

Financial statements of Gentoo Foundation Inc., FY2012

Period	2011/12
Period-Start	2011/07/01
Period-Ending	2012/06/30
Prepared-by	robbat2
As-of	2023/08/26 (rev 3b7e9a834280dc7d0cdd98750cf4d2638d92541f)

Disclaimers: Year-specific

• Large Donations (>$1k):
• Income:Programs:GSOC: GSOC2011: 15 students ($7500), mentor travel reimbursement ($2391.77): total $9891.77

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
  • Depreciation: See seperate Concerns section under Further Remarks

Statement of Financial Position

USD 88,301.58 Assets USD -7,047.49 Accumulated-Depreciation USD -463.17 Banners USD -170.66 Purchased_GDS7_200711 USD -292.51 Purchased_GDS7_200801 USD -6,584.33 Computers USD -899.43 Dev USD -90.10 Purchased_GDS5_200803 USD -76.30 Purchased_GDS5_200904 USD -203.87 Purchased_GDS5_200910 USD -18.85 Purchased_GDS5_201001 USD -348.51 Purchased_GDS5_201004 USD -38.49 Purchased_GDS5_201012 USD -116.08 Purchased_GDS5_201106 USD -6.40 Purchased_GDS5_201107 $-0.83 Purchased_GDS5_201205 USD -5,684.90 Infra USD -35.77 Purchased_GDS5_200905 USD -2,408.39 Purchased_GDS5_201003 USD -10.00 Purchased_GDS5_201107 USD -101.34 Purchased_GDS5_201110 USD -1,014.34 Purchased_GDS5_201111 USD -1,192.22 Purchased_GDS5_201112 USD -861.69 Purchased_GDS5_201202 USD -61.15 Purchased_GDS5_201206 USD 67,925.11 Bank USD 58,118.32 CapOne:Saving8438 USD 9,806.79 CapOneMoneyMarket USD 21,854.68 Capital USD 586.88 Banners USD 216.24 Purchased_GDS7_200711 USD 370.64 Purchased_GDS7_200801 USD 21,267.80 Computers USD 1,469.12 Dev USD 96.94 Purchased_GDS5_200803 USD 93.46 Purchased_GDS5_200904 USD 266.15 Purchased_GDS5_200910 USD 25.82 Purchased_GDS5_201001 USD 502.18 Purchased_GDS5_201004 USD 69.99 Purchased_GDS5_201012 USD 269.95 Purchased_GDS5_201106 USD 128.00 Purchased_GDS5_201107 USD 16.63 Purchased_GDS5_201205 USD 19,798.68 Infra USD 45.00 Purchased_GDS5_200905 USD 3,470.30 Purchased_GDS5_201003 USD 200.00 Purchased_GDS5_201107 USD 289.54 Purchased_GDS5_201110 USD 4,057.37 Purchased_GDS5_201111 USD 4,768.87 Purchased_GDS5_201112 USD 5,744.63 Purchased_GDS5_201202 USD 1,222.97 Purchased_GDS5_201206 USD 5,569.29 Paypal -------------------- USD 88,301.58

USD 88,301.59 NetAssets:RetainedEarnings USD -25,485.86 Expenses USD 113,787.45 Income -------------------- USD 88,301.59

Remarks

• See: [AC-NPO-2]

Statement of Activities

       USD 22,482.23  Income
          USD 317.89    Commission
       USD 11,856.73    Donations
        USD 7,525.13      Cash
        USD 4,331.60      Non-Cash
          USD 415.84    Interest
          USD 335.17      CapOne:Saving8438
           USD 80.67      CapOneMoneyMarket
        USD 9,891.77    Programs:GSOC
--------------------
       USD 22,482.23

USD 7,836.10 Expenses USD 4,736.96 Depreciation USD 348.11 Events USD 365.11 Fees USD 42.46 Legal USD 322.65 Paypal USD 2,385.92 GSOC:Mentor-Travel-Reimbursement -------------------- USD 7,836.10

Remarks

• See: [AC-NPO-2]

TODO: Statement of Functional Expenses

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

Program: Foundation

           USD 42.46  Expenses:Fees:Legal

Program: GSOC

        USD 2,385.92  Expenses:GSOC:Mentor-Travel-Reimbursement

Program: PR

          USD 348.11  Expenses:Events

Program: NONE

        USD 5,059.60  Expenses
        USD 4,736.96    Depreciation
          USD 322.65    Fees:Paypal
--------------------
        USD 5,059.60

TODO: Statement of Cash Flows

• Operating Activities
• Investing Activities
• Financing Activities

Capital Assets

Statement of Position

• This represents all Assets still in use.
• Assets (classes) that are present in this Statement of Position, but NOT in the Statement Of Financial Position are fully depreciated, and have a book value of $0.

              35 pcs  Virtual:Assets:Capital
               2 pcs    Banners
               1 pcs      Purchased_GDS7_200711
               1 pcs      Purchased_GDS7_200801
              33 pcs    Computers
              14 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
              19 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
--------------------
              35 pcs

Change of Position

2011/07/18       TODO       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201107)              1 pcs              1 pcs
2011/07/27       TODO       (Virtual:Assets:Capital:Computers:Dev:Purchased_GDS5_201107)              1 pcs              2 pcs
2011/10/31       Cisco Switch (bug#383573)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201110)              1 pcs              3 pcs
2011/11/07       Server: dipper.g.o       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201111)              1 pcs              4 pcs
2011/11/14       Server Parts (bug#389989)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201111)              1 pcs              5 pcs
2011/11/14       Server Parts (bug#371825)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201111)              1 pcs              6 pcs
2011/11/17       Server Parts (bug#389989)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201111)              1 pcs              7 pcs
2011/11/17       Server Parts (bug#389989)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201111)              1 pcs              8 pcs
2011/11/17       Server Parts (bug#389989)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201111)              1 pcs              9 pcs
2011/12/13       Server ??? donated by Google       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201112)              1 pcs             10 pcs
2011/12/27       Server Parts (bug#389989)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201112)              1 pcs             11 pcs
2012/02/22       Server Parts (bug#392335)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201202)              1 pcs             12 pcs
2012/02/29       Server Parts (bug#399209)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201202)              1 pcs             13 pcs
2012/02/29       Server Parts (bug#399209)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201202)              1 pcs             14 pcs
2012/05/24       Server (bug#417399)       (Virtual:Assets:Capital:Computers:Dev:Purchased_GDS5_201205)              1 pcs             15 pcs
2012/06/12       Server Parts: RAID cards (bug#420299)       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201206)              1 pcs             16 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

               $0.01  Expenses:Fees:Paypal

Unclosed Income

              $-0.01  Income:Donations:Cash

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

• [FASB2016-14] UPDATE 2016-14—NOT-FOR-PROFIT ENTITIES (TOPIC 958): PRESENTATION OF FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ENTITIES. http://fasb.org/cs/ContentServer?c=Document_C&cid=1176168381847&d=&pagename=FASB%2FDocument_C%2FDocumentPage
• [AC-NPO-1] Nonprofit Accounting Explaination (1): Introduction to Nonprofit Accounting. https://www.accountingcoach.com/nonprofit-accounting/explanation/1
• [AC-NPO-2] Nonprofit Accounting Explaination (2): Financial Statements of Nonprofits. https://www.accountingcoach.com/nonprofit-accounting/explanation/2
• [AC-NPO-4] Nonprofit Accounting Explaination (4): Statement of Functional Expenses. https://www.accountingcoach.com/nonprofit-accounting/explanation/4
• [IRS-946] How To Depreciate Property. https://www.irs.gov/pub/irs-pdf/p946.pdf