[foundation-board] Fwd: Accounts - updated

Mon Feb 21 16:01:04 UTC 2011

Hi Rufus

I've now had a chance to look at the accounts. Here are some comments.

Page 1: You should probably list me as R Hogge
Page 1: states the accounts were approved on 15 February. I think we need to
at least have a positive vote on this list in order to approve the accounts
and I assume this is just holding text.
Page 3: I'm curious as to the use of the word Turnover in the heading here.
Why is this not simply "income"? This seems especially strange as Note 1
(page 5) states "turnover represents event income received by the company".
Please explain.
Page 3: As I said in my earlier email, I think we need a note number against
"tax on loss on ordinary activities"  (which in any case, should read "tax
on profit/loss on ordinary activities, no?)" saying "It is our understanding
that corporation tax is not payable by Open Rights as it is a not-for-profit
company."
Page 5: Is it conventional to name our debtors? I'm conscious that members
of the community will want to know why the large debt. Must we keep
confidentiality? How can we let our community know what's going on in a way
that is appropriately respectful to our debtors?
Page 5: As I've said before, I'd like a note here to the effect of "It is
our understanding that corporation tax is not payable by Open Rights as
it is a not-for-profit company."

Thank you for all your hard work compiling these accounts, they look great
otherwise.

Warm wishes

Becky

On 17 February 2011 14:32, Becky Hogge <becky.hogge at gmail.com> wrote:

> Hi Rufus
>
> Thanks for these, I'll take a look at them over the weekend.
>
> I certainly don't have the expertise to say for certain whether we are
> liable for corporation tax or not. I remember that ORG was not liable
> (although we did pay it once, and subsequently reclaimed it) but I don't
> know whether this was because we held all "profits" on account for
> activities the following year, or because we had not-for-profit conditions
> in our Mems and Arts.
>
> OKF may need to state explicitly that we have such terms and are therefore
> not liable. See, for example, p20 of ORG's review of activities 2005-2007
> http://www.openrightsgroup.org/wp-content/uploads/org_reviewofactivities2007.pdf,  which
> includes the statement "It is our understanding that corporation tax is not
> payable by Open Rights as it is a not-for-profit company." They appear to
> have used this wording consistently up until 2010, when it no longer appears
> in the version of their accounts republished in their Annual report,
> although it could still appear in the accounts they have submitted to
> Companies House, I haven't checked.
>
> Rufus, do you want a second opinion beyond Urban Ledgers, in which case, I
> suggest that unless someone from the Board wants to step forward with more
> expertise than I have, we solicit one from a professional accountant, or
> would a reconfirmation from Urban Ledgers be sufficient?
>
> Cheers
>
> Becky
>
> On 15 February 2011 17:46, Rufus Pollock <rufus.pollock at okfn.org> wrote:
>
>> Hi All,
>>
>> Please find attached our draft accounts for 2009-2010. Since these are due
>> by the end of February I would ask that people aim to get comments to me to
>> pass on to Urban Ledgers by next Monday at the latest.
>>
>> One major point to note is that we have a very substantial debtor entry
>> (re. DGU CKAN work) and a significant creditors entry (for £77,967). This
>> latter is an effort to represent anticipated liabilities or spending on
>> projects where we had already received funds but not spent them (primarily
>> CKAN DGU and WDMMG).
>>
>> One question I wish to double-check is whether we will be liable for
>> corporation tax on the profit/loss we show. Since we are a not-for-profit
>> and any income we receive on projects would eventually be discharged on
>> those projects or related ones I do not think we are liable and Urban
>> Ledgers had confirmed this previously but I would like to double check.
>>
>> Rufus
>>
>> ---------- Forwarded message ----------
>> From: Catherine Davis <catherine.davis at urbanledgers.co.uk>
>> Date: 15 February 2011 16:03
>> Subject: Accounts - updated
>> To: rufus.pollock at okfn.org
>>
>>
>> Hi Rufus,
>>
>> We have now taken into account your previously emailed comments, and noted
>> the slight reallocation of the hosting expenses, and raised an accrual for
>> Software Development for £77,216.40.
>>
>> Please find attached both the full and abbreviated set of accounts for
>> your perusal and approval.  Once you're happy with them, you'll just need to
>> sign and date in the various places and send either the full or abbreviated
>> set (your preference) to Companies House prior to the due date.
>>
>> In terms of the accruals we've raised in the accounts, we haven't made any
>> changes in Xero (as we don't have access to do journal entries), however I
>> would recommend you post the following entries to bring everything in line:
>>
>> *As at 31 May 2010:*
>>
>> Debit   401 Audit and Accountancy Fees  £750
>> Credit  805 Accruals £750
>> (being our fees for preparing the end of year accounts)
>>
>> Debit   3201 Contractor Software Development  £77,216.40
>> Credit  805  Accruals  £77,216,40
>>
>> *As at 1 June 2010:*
>>
>> Post the reversal of the two journals above, ie:
>>
>> Credit   401 Audit and Accountancy Fees  £750
>> Debit   805 Accruals £750
>>
>> Credit  3201 Contractor Software Development  £77,216.40
>> Debit  805  Accruals  £77,216,40
>>
>> When it comes time to pay the accountancy fee invoice and the contractors
>> in respect of these accruals, simply post from the usual accounts, ie: for
>> accountancy fees you would simply post against account 401 with the other
>> side being Bank.
>>
>> I'd also recommend closing off the period in Xero as at 31 May 2010 so
>> that no entries can be inadvertently backdated to the prior year, once it's
>> been finalised.
>>
>> Just sing out if you need a hand with any of the above, or if you have any
>> changes you'd like to be made to the accounts.
>>
>> Kind regards
>> Catherine
>>
>>
>>
>>
>>
>> --
>> Catherine Davis*Managing Director* *M*0795 808 5386*T
>> * 0207 700 0355*F*0207 700 3722 *W*www.urbanledgers.co.uk
>>
>>
>>
>>
>>
>> --
>> Co-Founder, Open Knowledge Foundation
>> Promoting Open Knowledge in a Digital Age
>> http://www.okfn.org/ - http://blog.okfn.org/
>>
>>
>>
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>>
>>
>
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