Remarks

• See: [AC-NPO-2]

Remarks

• See: [AC-NPO-2]

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

Unclosed Expenses

Unclosed Income

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.

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