Foundation:Gentoo Foundation Finances FY2018

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Financial statements of Gentoo Foundation Inc., FY2018

Period 2017/18
Period-Start 2017/07/01
Period-Ending 2018/06/30
Prepared-by robbat2
As-of 2020/08/24 (rev be0e8169a8c6bbe6b90250a5bce2f96704ab6d40)

Disclaimers: Year-specific

  • Income:Programs:GSOC: GSOC2017: 4 students ($2000), mentor travel reimbursement ($2200), total $4700.
  • Large Donations (>$1k):
    • 2017/09/xx: $5000 (Gavin Ferris)
    • 2017/12/xx: $1200
    • 2018/02/xx: $5000 (Gavin Ferris)
    • 2018/06/xx: $5000 (Gavin Ferris)

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 157,233.45  Assets
      USD -10,461.24    Accumulated-Depreciation:Computers
         USD -927.37      Dev:Purchased_GDS5_201307
       USD -9,533.87      Infra
         USD -439.56        Purchased_GDS5_201411
       USD -1,173.37        Purchased_GDS5_201412
         USD -327.50        Purchased_GDS5_201502
       USD -6,599.08        Purchased_GDS5_201606
         USD -844.89        Purchased_GDS5_201710
         USD -145.28        Purchased_GDS5_201803
           USD -4.20        Purchased_GDS5_201804
      USD 137,915.58    Bank
      USD 120,614.71      CapOne
        USD 5,700.00        Check7136
      USD 114,914.71        Saving8438
       USD 17,300.87      CapOneMoneyMarket
       USD 16,777.98    Capital:Computers
        USD 1,025.62      Dev:Purchased_GDS5_201307
       USD 15,752.36      Infra
          USD 520.99        Purchased_GDS5_201411
        USD 1,390.74        Purchased_GDS5_201412
          USD 401.15        Purchased_GDS5_201502
       USD 10,029.00        Purchased_GDS5_201606
        USD 2,413.96        Purchased_GDS5_201710
          USD 968.54        Purchased_GDS5_201803
           USD 27.98        Purchased_GDS5_201804
       USD 13,001.13    Paypal
--------------------
      USD 157,233.45
      USD 157,233.45  NetAssets:RetainedEarnings
      USD -79,158.67    Expenses
      USD 236,392.12    Income
--------------------
      USD 157,233.45

Remarks

  • See: [AC-NPO-2]


Statement of Activities

       USD 28,600.15  Income
          USD 254.50    Commission
       USD 23,162.01    Donations:Cash
          USD 483.64    Interest
          USD 449.93      CapOne:Saving8438
           USD 33.71      CapOneMoneyMarket
        USD 4,700.00    Programs:GSOC
--------------------
       USD 28,600.15
        USD 9,292.95  Expenses
          USD 900.00    Accounting
        USD 3,659.64    Depreciation
        USD 2,000.00    Donations
        USD 1,047.45    Fees:Paypal
        USD 1,466.71    Hosting
           USD 48.82      Amazon
        USD 1,417.89      Hetzner
          USD 169.15    Mail
           USD 50.00    Phone
--------------------
        USD 9,292.95

Remarks

  • See: [AC-NPO-2]


TODO: Statement of Functional Expenses

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

Program: Foundation

        USD 3,119.15  Expenses
          USD 900.00    Accounting
        USD 2,000.00    Donations
          USD 169.15    Mail
           USD 50.00    Phone
--------------------
        USD 3,119.15

Program: Infra

        USD 1,466.71  Expenses:Hosting
           USD 48.82    Amazon
        USD 1,417.89    Hetzner
--------------------
        USD 1,466.71

Program: NONE

        USD 4,707.09  Expenses
        USD 3,659.64    Depreciation
        USD 1,047.45    Fees:Paypal
--------------------
        USD 4,707.09

TODO: Statement of Cash Flows

  • Operating Activities
  • Investing Activities
  • Financing Activities

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 Assets:Capital accounts are tagged with the MACRS information, and have a paired contra-asset account under Assets:Accumulated-Depreciation.
    • 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
  • 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.
  • Risks & Outstanding Issues:
    • There are no Section 179 elections in place for additional depreciation.
    • 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.

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