Foundation:Gentoo Foundation Finances FY2021

Financial statements of Gentoo Foundation Inc., FY2021

Period	2020/21
Period-Start	2020/07/01
Period-Ending	2021/06/30
Prepared-by	robbat2
As-of	2023/08/26 (rev 3b7e9a834280dc7d0cdd98750cf4d2638d92541f)

Disclaimers: Year-specific

• FY2021 closed & reviewed by accountant
• Income:Programs:GSOC: GSOC2020: 4 students (??), mentor travel reimbursement (??), total $3500.
• WIP:
  • bug & other tracking metadata not yet attached to all non-scheduled expenses or capital purchases
• Large Donations (>$1k):
  • 2021/06/29: $1000 (Robert Schultz)

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 161,887.62 Assets USD -6,272.69 Accumulated-Depreciation USD -90.40 Banners:Purchased_GDS7_201811 USD -6,182.29 Computers:Infra USD -2,114.87 Purchased_GDS5_201710 USD -790.72 Purchased_GDS5_201803 USD -22.84 Purchased_GDS5_201804 USD -1,433.90 Purchased_GDS5_201812 USD -1,427.60 Purchased_GDS5_201907 USD -392.35 Purchased_GDS5_201911 USD 152,506.33 Bank USD 135,049.06 CapOne USD 32,898.79 Check7136 USD 102,150.27 Saving8438 USD 17,457.27 CapOneMoneyMarket USD 9,563.75 Capital USD 155.65 Banners:Purchased_GDS7_201811 USD 9,408.10 Computers:Infra 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 6,090.23 Paypal -------------------- USD 161,887.62

USD 161,887.62 NetAssets:RetainedEarnings USD -132,256.15 Expenses USD 294,143.77 Income -------------------- USD 161,887.62

Remarks

• See: [AC-NPO-2]

Statement of Activities

       USD 21,084.28  Income
       USD 17,139.11    Donations:Cash
          USD 400.24    Interest
          USD 348.04      CapOne:Saving8438
           USD 52.20      CapOneMoneyMarket
        USD 3,500.00    Programs:GSOC
           USD 44.93    Rebate
--------------------
       USD 21,084.28

USD 9,258.03 Expenses USD 1,500.00 Accounting USD 3,203.79 Depreciation USD 770.49 Events USD 836.95 Fees:Paypal USD 2,644.15 Hosting:Hetzner USD 193.76 Mail USD 70.00 Phone USD 38.89 Services -------------------- USD 9,258.03

Remarks

• See: [AC-NPO-2]

TODO: Statement of Functional Expenses

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

Program: Foundation

        USD 1,763.76  Expenses
        USD 1,500.00    Accounting
          USD 193.76    Mail
           USD 70.00    Phone
--------------------
        USD 1,763.76

Program: Infra

        USD 2,683.04  Expenses
        USD 2,644.15    Hosting:Hetzner
           USD 38.89    Services
--------------------
        USD 2,683.04

Program: PR

          USD 770.49  Expenses:Events

Program: NONE

        USD 4,040.74  Expenses
        USD 3,203.79    Depreciation
          USD 836.95    Fees:Paypal
--------------------
        USD 4,040.74

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

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