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 2021/08/22 (rev 7377491ddd28e84263f135f999f00a8c86336bd4)

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

      USD 150,061.38  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
       USD 14,160.43    Paypal
--------------------
      USD 150,061.38
      USD 150,061.37  NetAssets:RetainedEarnings
     USD -122,998.12    Expenses
      USD 273,059.49    Income
--------------------
      USD 150,061.37

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
       USD 35,582.29  Expenses
        USD 6,035.00    Accounting
        USD 2,756.95    Depreciation
          USD 571.34    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
        USD 4,516.80    Project:Nitrokey
           USD 38.89    Services
       USD 18,601.21    Taxes:Federal:Income
--------------------
       USD 35,582.29

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

        USD 4,536.49  Expenses
           USD 19.69    Fees:Paypal
        USD 4,516.80    Project:Nitrokey
--------------------
        USD 4,536.49

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

Capital Assets

Statement of Position

              50 pcs  Virtual:Assets:Capital
               2 pcs    Banners
               1 pcs      Purchased_GDS7_200711
               1 pcs      Purchased_GDS7_200801
              48 pcs    Computers
              15 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
               1 pcs        Purchased_GDS5_201307
              33 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
               2 pcs        Purchased_GDS5_201411
               1 pcs        Purchased_GDS5_201412
               2 pcs        Purchased_GDS5_201502
               1 pcs        Purchased_GDS5_201606
               2 pcs        Purchased_GDS5_201710
               1 pcs        Purchased_GDS5_201803
               1 pcs        Purchased_GDS5_201804
               1 pcs        Purchased_GDS5_201812
               1 pcs        Purchased_GDS5_201907
               2 pcs        Purchased_GDS5_201911
--------------------
              50 pcs

Change of Position

2019/07/12       catbus.sparc.dev.gentoo.org - bug 607622       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201907)                          1 pcs                          1 pcs
2019/11/01       guppy.ia64.dev.gentoo.org - replacement PSU       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201911)                          1 pcs                          2 pcs
2019/11/01       guppy.ia64.dev.gentoo.org - replacement HDD       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201911)                          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