Foundation:Gentoo Foundation Finances FY2019

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Financial statements of Gentoo Foundation Inc., FY2019

Period 2018/19
Period-Start 2018/07/01
Period-Ending 2019/06/30
Prepared-by robbat2
As-of 2020/08/24 (rev be0e8169a8c6bbe6b90250a5bce2f96704ab6d40)

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

Statement of financial position

      USD 169,621.42  Assets
      USD -12,653.83    Accumulated-Depreciation
          USD -27.78      Banners:Purchased_GDS7_201811
      USD -12,626.04      Computers:Infra
         USD -498.80        Purchased_GDS5_201411
       USD -1,331.49        Purchased_GDS5_201412
         USD -372.83        Purchased_GDS5_201502
       USD -7,971.05        Purchased_GDS5_201606
       USD -1,472.52        Purchased_GDS5_201710
         USD -474.58        Purchased_GDS5_201803
          USD -13.71        Purchased_GDS5_201804
         USD -491.06        Purchased_GDS5_201812
      USD 143,127.25    Bank
      USD 125,774.39      CapOne
       USD 10,400.00        Check7136
      USD 115,374.39        Saving8438
       USD 17,352.86      CapOneMoneyMarket
       USD 17,872.26    Capital
          USD 155.65      Banners:Purchased_GDS7_201811
       USD 17,716.61      Computers: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 1,964.25        Purchased_GDS5_201812
       USD 21,275.73    Paypal
--------------------
      USD 169,621.42
      USD 169,621.42  NetAssets:RetainedEarnings
      USD -87,415.82    Expenses
      USD 257,037.24    Income
--------------------
      USD 169,621.42

Remarks

  • See: [AC-NPO-2]


Statement of Activities

       USD 20,645.12  Income
       USD 16,404.23    Donations:Cash
          USD 511.67    Interest
          USD 459.68      CapOne:Saving8438
           USD 51.99      CapOneMoneyMarket
        USD 3,700.00    Programs:GSOC
           USD 29.22    Rebate
--------------------
       USD 20,645.12
        USD 8,257.16  Expenses
          USD 350.00    Accounting
        USD 3,218.21    Depreciation
          USD 499.01    Events
          USD 732.84    Fees:Paypal
        USD 1,204.99    GSOC:Mentor-Travel-Reimbursement
        USD 1,995.23    Hosting
          USD 104.36      Amazon
        USD 1,890.87      Hetzner
            USD 6.99    Infra:Parts
          USD 171.00    Mail
           USD 40.00    Phone
           USD 38.89    Services
--------------------
        USD 8,257.16

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

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