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

johanna curiel curiel johanna.curiel at owasp.org
Wed Jun 22 18:00:00 UTC 2016


Andrew,

Thanks for pointing me out to the reports.

My question based on these reports  is the following

Right now there is a total allocated for :
$746,292.52 allocated for Chapters
$  78,803.18 for projects

It means the money is exclusively reserved for costs related to these
accounts (expenses for projects and chapters)
https://docs.google.com/spreadsheets/d/11acTOmtmBGq6-5CIGsjlEByU8POSGqda0r23VNnhEGQ/pub?hl=en_US&hl=en_US&output=html#

Following accounting principles , these allocation should appear under *current
liabilities* in the balance sheet,but they are not allocated anywhere,
correct me if I'm wrong.

If you sum up allocation for chapters and projects, these is an equivalent
of aUSD825,095.65
and you look at the current assets in 2015 Dec Balance sheet, is a total of
USD 822,474.88

Off course , without a current P&L , we don't know other source of incomes
where the foundation can count to pay other liabilities
(excluding Projects + Chapters) such as salary for staff or conferences
costs or credit cards etc..

My concrete questions are:


   - Why do these current liabilities such as the allocation of chapters+
   projects money does not appear on these reports under this section?
   - If they appear, where exactly are these being allocated?
   - Do we work with more actual P&L + Balance sheet that reflects the
   actual financial situation?


Basically I think we need an actual Balance Sheet but most important P&L in
order to be able to have a clear picture of the actual financial
situation that includes these allocations.

I know that we do not spend the money as fast as has been allocated but the
actual picture (BS + PL December 2015) does not offer in my opinion a clear
view of the financial situation today and
has the risk to create a picture that there is more money available for
paying other liabilities than we can actually afford without using the
budget that has been allocate for chapters or projects.

Regards

Johanna




On Wed, Jun 22, 2016 at 9:37 AM, Andrew van der Stock <vanderaj at owasp.org>
wrote:

> 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
>>
>>
>


-- 
Johanna Curiel
OWASP Volunteer
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