Foundation:Gentoo Foundation Finances FY2020

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	2023/08/26 (rev 3b7e9a834280dc7d0cdd98750cf4d2638d92541f)

Disclaimers: Year-specific

• FY2020 closed & reviewed by accountant
• 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
  • 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

• 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.

              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)

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

• [FASB2016-14] UPDATE 2016-14—NOT-FOR-PROFIT ENTITIES (TOPIC 958): PRESENTATION OF FINANCIAL STATEMENTS OF NOT-FOR-PROFIT ENTITIES. http://fasb.org/cs/ContentServer?c=Document_C&cid=1176168381847&d=&pagename=FASB%2FDocument_C%2FDocumentPage
• [AC-NPO-1] Nonprofit Accounting Explaination (1): Introduction to Nonprofit Accounting. https://www.accountingcoach.com/nonprofit-accounting/explanation/1
• [AC-NPO-2] Nonprofit Accounting Explaination (2): Financial Statements of Nonprofits. https://www.accountingcoach.com/nonprofit-accounting/explanation/2
• [AC-NPO-4] Nonprofit Accounting Explaination (4): Statement of Functional Expenses. https://www.accountingcoach.com/nonprofit-accounting/explanation/4
• [IRS-946] How To Depreciate Property. https://www.irs.gov/pub/irs-pdf/p946.pdf