Foundation:Gentoo Foundation Finances FY2020

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Financial statements of Gentoo Foundation Inc., FY2020

Period 2019/20
Period-Start 2019/07/01
Period-Ending 2020/06/30
Prepared-by robbat2
As-of 2020/08/24 (rev be0e8169a8c6bbe6b90250a5bce2f96704ab6d40)

Disclaimers: Year-specific

  • Income:Programs:GSOC: GSOC2019: 2 students ($1000), mentor travel reimbursement ($2200), total $3700.
  • WIP:
    • Remaining Non-USD transactions need hard conversion to USD
    • bug & other tracking metadata not yet attached to all non-scheduled expenses or capital purchases

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

       EUR -3,910.61
      USD 154,597.87  Assets
      USD -13,097.89    Accumulated-Depreciation
          USD -64.31      Banners:Purchased_GDS7_201811
      USD -13,033.58      Computers:Infra
       USD -9,068.22        Purchased_GDS5_201606
       USD -1,849.09        Purchased_GDS5_201710
         USD -672.17        Purchased_GDS5_201803
          USD -19.42        Purchased_GDS5_201804
       USD -1,080.34        Purchased_GDS5_201812
         USD -166.00        Purchased_GDS5_201907
         USD -178.34        Purchased_GDS5_201911
      USD 129,406.09    Bank
      USD 112,001.02      CapOne
       USD 10,198.79        Check7136
      USD 101,802.23        Saving8438
       USD 17,405.07      CapOneMoneyMarket
       USD 19,592.75    Capital
          USD 155.65      Banners:Purchased_GDS7_201811
       USD 19,437.10      Computers:Infra
       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 3,320.00        Purchased_GDS5_201907
          USD 713.37        Purchased_GDS5_201911
       EUR -3,910.61
        USD 4,536.49    Clearing:Paypal-Exchange
       USD 14,160.43    Paypal
--------------------
       EUR -3,910.61
      USD 154,597.87
      USD 154,597.87  NetAssets:RetainedEarnings
     USD -118,461.62    Expenses
      USD 273,059.49    Income
--------------------
      USD 154,597.87

Remarks

  • See: [AC-NPO-2]


Statement of Activities

       USD 16,022.25  Income
          USD 260.23    Commission
       USD 11,491.30    Donations:Cash
          USD 480.05    Interest
          USD 427.84      CapOne:Saving8438
           USD 52.21      CapOneMoneyMarket
        USD 3,700.00    Programs:GSOC
           USD 90.67    Rebate
--------------------
       USD 16,022.25
        EUR 3,910.61
       USD 31,045.80  Expenses
        USD 6,035.00    Accounting
        USD 2,756.95    Depreciation
           EUR 16.93
          USD 551.65    Fees:Paypal
          USD 857.40    GSOC:Mentor-Travel-Reimbursement
        USD 1,965.82    Hosting
          USD 122.59      Amazon
        USD 1,843.23      Hetzner
          USD 213.88    Mail
           USD 25.00    Phone
        EUR 3,893.68    Project:Nitrokey
           USD 38.89    Services
       USD 18,601.21    Taxes:Federal:Income
--------------------
        EUR 3,910.61
       USD 31,045.80

Remarks

  • See: [AC-NPO-2]


TODO: Statement of Functional Expenses

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

Program: Foundation

       USD 24,875.09  Expenses
        USD 6,035.00    Accounting
          USD 213.88    Mail
           USD 25.00    Phone
       USD 18,601.21    Taxes:Federal:Income
--------------------
       USD 24,875.09

Program: GSOC

          USD 857.40  Expenses:GSOC:Mentor-Travel-Reimbursement

Program: Infra

        USD 2,004.71  Expenses
        USD 1,965.82    Hosting
          USD 122.59      Amazon
        USD 1,843.23      Hetzner
           USD 38.89    Services
--------------------
        USD 2,004.71

Program: Nitrokey

        EUR 3,910.61  Expenses
           EUR 16.93    Fees:Paypal
        EUR 3,893.68    Project:Nitrokey
--------------------
        EUR 3,910.61

Program: NONE

        USD 3,308.60  Expenses
        USD 2,756.95    Depreciation
          USD 551.65    Fees:Paypal
--------------------
        USD 3,308.60

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

               $0.00
        EUR 3,910.61  Expenses
           EUR 16.93    Fees:Paypal
        EUR 3,893.68    Project:Nitrokey
--------------------
               $0.00
        EUR 3,910.61

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