[OSGeo Finance] Finance Report

[Ken Tamura]

This is how I would also define a "liability", it would be recorded at the time the commitment is made, not when the cash was disbursed.


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


-----Original Message-----
From: Dave McIlhagga (External)
Sent: Wednesday, July 09, 2008 9:56 AM
To: Frank Warmerdam (External)
Cc: Tyler Mitchell (OSGeo); Ken Tamura; Finance List
Subject: Re: [OSGeo Finance] Finance Report

Actually in these cases - the funds are allocated for contracting when
the sponsorship is committed - even before the actual contracts are
signed. So I'm not a finance expert -- but I believe we should be
identifying it as a liability since the project can issue a contract
for this at any time.

Ken - does this make sense to you?

Dave





On 9-Jul-08, at 12:39 PM, Frank Warmerdam wrote:

> Dave McIlhagga wrote:
>> Hi Tyler,
>> I've been through the documentation - the one thing I'm not clear
>> on is our cash vs income situation. I'm not certain -- but it seems
>> like these numbers reflect the cash side rather than income? For
>> instance -- there is significant income from project sponsors (for
>> GDAL) but no indication of a liability for future contracting that
>> OSGeo is on the hook for. There may be other examples like this
>> that I'm not aware of.
>> Could you provide some clarity on this? Although cashflow
>> management is important -- for a clear view of health and
>> sustainability of the organization (especially in an annual
>> report), it's critical that our income statement and balance sheet
>> be accurate.
>
> Dave,
>
> In the example of GDAL, are you looking for a record of outstanding
> liabilities
> like contracts that have been signed and we can consider ourselves
> on the hook
> to pay?
>
> There are none outstanding from 2007, but there are two for 2008
> that could
> be recorded.  I try to notify you and Tyler when I sign contracts on
> behalf of
> OSGeo but I can collect the potential liabilities for review if
> needed.
>
> Best regards,
> --
> ---------------------------------------
> +--------------------------------------
> I set the clouds in motion - turn up   | Frank Warmerdam, warmerdam at pobox.com
> light and sound - activate the windows | http://pobox.com/~warmerdam
> and watch the world go round - Rush    | President OSGeo, http://osgeo.org
>