[Foundation-l] Fundraising and site notice
saintonge at telus.net
Thu Jan 11 22:30:26 UTC 2007
rfrangi at libero.it wrote:
>>>7 months ago, we had a "cash at the end of the year" of 500 000 dollars.
>>Plus $78,415 in Google stock. Plus $50,000 in accounts receivable.
>>Plus $400,000 in computer equipment and software.
>$400.000 in HW/SW? I would not count them, because it's something you can't spend. And that value decreases every day (If you don't buy new hw/sw)
That's a peculiar view of accounting. I agree that fixed assets are not
particularly liquid, but then selling them would severely hinder our
ability to maintain a website. These are already depreciated values,
and are converted to expenses over the useful life of the hardware.
This is a much more realistic way to handle hardware costs since it
reflects the fact that servers can remain operational for several
years. This is much more useful for medium to long range planning for
There is nothing alarming about accounts receivable. A balance sheet is
a snapshot of the organization's finances at a given time. Receivables
accrue as services are rendered, and invoices are often issued when
predetermined accrual periods are over. If a good client has accrued a
liability at the end of the fiscal year it should appear on the
financial statements as it has. An invoice can be issued in the
following week, and payment received in the week after that. That will
not change the published balance sheet, but those funds are very soon
Google stacks are actively traded on the stock exchange, and there is no
indication that these are restricted assets. Without commenting on the
wisdom of such a move, the Foundation could submit them to a broker for
sale and have its cash within a week. In my mind that's highly spendable.
It was good to see that official financial statements were finally
produced. That certainly satisfies my own previous complaints, and I
prefer not to make my satisfaction an excuse for further complaints. I
can read financial statements, and see no cause for alarm. Regular
quarterly statements would be nice, and there would be no need to have
these interim statements audited, but that's more a suggestion than a
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