[Owasp-leaders] [Owasp-board] Financial report 2015 -questions regarding reports

Andrew van der Stock vanderaj at owasp.org
Wed Jun 22 13:37:15 UTC 2016


Johanna,

In each Board meeting's reading material or either in the ED report or the
treasurer report, there is a very detailed draft Financial Package for 1-2
months in the past directly exported from QuickBooks each month in accrual
and cash basis. The draft December 2015 financial package was released in
February 2015, which contains all the very nearly final numbers for 2015.
Accrual basis is excellent for letting you know if you made a profit or a
loss that month, so every time you see ($xxx), we spent more than we made.
It's only really a problem if that keeps on going on like that for big
values of $xxx.  That becomes clear through the year in the cash forecast
sheet, which you can see the actual amount of money OWASP has to its name
in the US and in the EU.

e.g.
https://www.owasp.org/index.php/February_17,_2016

Draft December 2015 financial package:
https://docs.google.com/spreadsheets/d/1OdiijD2toRgkhIKupbrFMqAEZSBH_NrTxHxkKe7XDzM/edit?usp=sharing

As you correctly note, there's not a lot of graphs in here, and I've
struggled with that, as it's difficult to see where we have come from and
where we are going to, which as a board is the context we need for good
long term decisions. I will have read only access to QuickBooks soon, and
if that generates graphs, you can be sure, I'll add them to the treasurer's
report, as I'm pretty visually orientated, and I think it will help the
Board make better informed decisions.

In your e-mail, you note frustration in delays, but that's just how it
works. The books aren't closed until three months later, and then some work
has to be done to make sure everything is reconciled, e.g. perform basic
checks to make sure things stack up, to allow receivables that were paid by
check or funds transfer with a waiting period, outstanding CC transactions,
etc, to come in, and loose ends tied up, like transferring funds to
chapters as approved in our December 2015 meeting, staff leave processed,
etc. For example, I'd expect a merchandise stock take to take place and to
match up stock on hand to stock in Quickbooks, assess AR for potential bad
debt write downs we might need to take, that sort of thing. It's not like
Tom and his team run a magic report on January 1 and call it done.

Since then, Tom Pappas and his team have been working on getting our Form
990 ready, which is effectively OWASP's tax return. We are expecting the
finalised final 2015 990 tax forms to be sent to me this week, ready for
our review and approval to submit to the IRS after the F2F. Those fully
reconciled figures end up in our 2015 Annual Report, which is due around
August or September. This will be added in the usual spots.

In a call the other day, Tom Pappas, our CFO, set me on the straight and
narrow, and we are GAAP compliant and have been for a fair while now. In
our 2013 audit, KPMG brought up a number of items that we had to bring into
line to make sure that we were GAAP compliant. These changes were put into
taken place, and if you compare a Board financial package from 2012 to now,
you'll see that indeed these things are now aligned to GAAP. We are due for
another audit of 2016's financials starting next year. I don't consider
GAAP compliance to be an issue in that audit.

I hope this answers your questions, and I'm sure Tom will jump in if I've
answered them incorrectly or incompletely.

thanks,
Andrew

On Wed, Jun 22, 2016 at 10:48 PM, johanna curiel curiel <
johanna.curiel at owasp.org> wrote:

> Board,
>
> I have noticed that we are half of 2016 and there is no available
> financial reports for 2015
>
> Example, at the moment a lot of money has been allocated to chapters and
> projects as part of their budget /expenses. How is that money been
> allocated within the balance sheet and under which account?
>
> Basically that money is not part anymore of an account that can be used to
> pay expenses , for example, to employees since already has been allocated
> for expense for chapters and projects.
>
> On the last balance sheet I do not see a similar breakdown of accounts.
>
> Are there charts of accounts available that can reflect the actual
> financial situation of the foundation including a more detail breakdown on
> the Balance Sheet and P&L?
>
> This report in here:
> https://www.owasp.org/images/7/7e/2014_OWASP_Annual_Report_Final.pdf
>
> Does not reflect the position based on a Balance sheet, with these details.
>
> What is the actual situation of these reports following accounting
> principles reporting standards like GAAP?
>
> --
> Johanna Curiel
> OWASP Volunteer
>
> _______________________________________________
> Owasp-board mailing list
> Owasp-board at lists.owasp.org
> https://lists.owasp.org/mailman/listinfo/owasp-board
>
>
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