[foundation-board] Fwd: Accounts - updated

Tue Feb 22 11:42:41 UTC 2011

Thanks for this feedback Becky. I will pass this on. As no-one else has
responded I am going to take it that, modulo these changes, the Accounts are
approved by the Board for submission to Companies House. (We are now on a
relatively tight timeline as they are due in by next Monday).

Rufus

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/
>>
>>
>>
>> _______________________________________________
>> foundation-board mailing list
>> foundation-board at lists.okfn.org
>> http://lists.okfn.org/mailman/listinfo/foundation-board
>>
>>
>

-- 
Co-Founder, Open Knowledge Foundation
Promoting Open Knowledge in a Digital Age
http://www.okfn.org/ - http://blog.okfn.org/
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