[OSGeo Finance] Motion: Adopt Financial Reports

[Ken Tamura]

Hello Frank,
These were only suggestions for other process controls over budgeting projects in the event that the Board felt that there was need for additional oversight.  If the existing process works, and the only concern is on a specific project, then the concerns can be treated specifically.

Other than that, I've been comfortable on the level of financial reporting at this point.


Ken Tamura
Geospatial Solutions of Autodesk, Inc.
415-507-8313 (w)    415-299-1704 (c)


-----Original Message-----
From: Frank Warmerdam (External)
Sent: Friday, August 08, 2008 10:16 AM
To: Ken Tamura
Cc: Finance List
Subject: Re: [OSGeo Finance] Motion: Adopt Financial Reports

Ken Tamura wrote:
> In order to help ensure project spending is controlled, project managers
> should issues detail project plans each budget period about how they will
> spend their money.  These plans are approved by finance committee and board.
> Then how the project manager spends the money is review each year to review
> if spending was to plan and reasonable costs were applied.
>
> This is a suggested process and audit control mechanism.

Ken,

As a project chair I don't really agree with this approach.  Aspects of
the management of project sponsorship funds are governed by the "Project
Sponsorship" document at:

   http://wiki.osgeo.org/wiki/Project_Sponsorship

This indicates that a projects responsibilities are:

#  To pass well documented motions for any expenditure of funds from the
project sponsorship fund.
# To provide clear direction (via the project chair/VP) to the OSGeo Treasurer
for any payments to be made from the project sponsorship fund.
# To produce a detailed annual report of activities based on the sponsorship
funding to be posted on the web site, and for distribution to sponsors.

I don't feel it is reasonable to ask for budgets.  The reserved
project funds are available for the projects to spend as they see fit with
some caveats that might put the foundation into disrepute.  We, the
finance committee, should assume that they may want to spend their funds
at any time and be prepared from this from a cash flow point of view.
Essentially that means we need to keep all project funds in a ready to use
liquid form.

One thing that may not always have been done as well as it should is that
projects should likely be clearing any financial commitment or expenditure
with the Treasurer before finalizing it.  For instance, before I (as GDAL
PSC Chair) sign a contract with a maintainer, I should notify the Treasurer
and confirm the funds are available to cover it and that it isn't deemed
inappropriate.

I do think the budgeting/review process is quite reasonable for other
committees such as SAC (System Administration Committee) and Marketting
that anticipate spending money (and presumably the ED).

Reviewing this:

 > In order to help ensure project spending is controlled

What sorts of controls are you seeing a need for?  Is this avoid them
overspending the amounts of money available to the projects?  To give
predictability to our cash flow?  To avoid money being spent
irresponsibly?

Best regards,
--
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I set the clouds in motion - turn up   | Frank Warmerdam, warmerdam at pobox.com
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and watch the world go round - Rush    | Geospatial Programmer for Rent