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 2023/08/26 (rev 3b7e9a834280dc7d0cdd98750cf4d2638d92541f)

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 (Miguel Latorre Garca)
    • 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
    • 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

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.
              46 pcs  Virtual:Assets:Capital
               2 pcs    Banners
               1 pcs      Purchased_GDS7_200711
               1 pcs      Purchased_GDS7_200801
              44 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
              29 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
--------------------
              46 pcs

Change of Position

2017/10/02       Server Parts: groundroller.g.o, goldeneye.g.o       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201710)              1 pcs              1 pcs
2017/10/04       Server Parts: groundroller.g.o, goldeneye.g.o       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201710)              1 pcs              2 pcs
2018/03/02       Server Parts: jacamar.g.o       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201803)              1 pcs              3 pcs
2018/04/02       Server Parts: jacamar.g.o       (Virtual:Assets:Capital:Computers:Infra:Purchased_GDS5_201804)              1 pcs              4 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








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