As a board member, I'd also like to see:- previous time periods not just the most recent 6 months (Why is it Apr-Sep? Our tax year is the calendar year, isn't it?) - a break-down of some of the larger items, e.g. 846 - Outside Services
- a cash-flow statement for each of the time periods - comparison with the budget we passed
I don't want to see the general ledger -- that's a level of detail not needed either by the board or the membership, and it contains a bunch of data that could reasonably be considered confidential by the vendors / contractors / employees involved.
And, of course, a forward-looking budget as soon as possible. On Nov 4, 2008, at 11:38, Dick Hardt wrote:
Fellow board membersAttached are the financial statements for the Foundation. These statements are less then ideal, but I think sharing what we have is better then not sharing anything.Items to note on these financials: ---------------------------------------------- We received the $50,000 payment from Microsoft for their corporate board seat[1] which- We also received $10,650 in membership fees. This is an increase from previous months and is a key metric to track as it balances the revenue from the corporate board members.- Expenses are as expected. Note that none of the marketing projects[2] were expensed in September, so this number is not indicative of our normal expenses.- We had $140K in cash at the end of the month, so there is no fear of the Foundation running out of funds near term.General Observations: -------------------------------- the anticipated fully loaded cost of the new Executive Director (included travel etc.) is estimated to be $200K - $350K- based on the CRC report, the community and corporate sponsors expect the Foundation to roll out programs, which will cost money. Given the lack of any substantial budget input, I would estimate that costs to be similar to the ED: $200K - $350K.- this leads to a budget of between $400K - $700k.- I would estimate our current annual revenue to be $100K from community and $250K from 5 corporate seats. This is only $350K, a $50K to $350K shortfall.- Although we have 2 other corps willing to pay $50K each, the board has not approved these other board members from joining.- There is significant risk that the current revenue may not be repeated if the community and board members do not think they are getting value for their funds.Summary -------------We either need to drastically reduce our budget and lower our ED expectations, or actively increase our revenue in a timely manner. Not addressing the revenue will significantly hinder our ability to retain an ED of the calibre we have been recruiting.-- Dick[1] for those wondering why we just did receive the $50,000, Microsoft had made a substantial contribution to OpenID by way of the legal fees for the IPR agreement. They essentially had spent their OpenID Budget and had to go back to get the funds for the board seat. Given[2] The core messaging platform project (~$10K left) and the CRC project ($10K)<CPA Report September 30, 2008.pdf> _______________________________________________ board mailing list [email protected] http://openid.net/mailman/listinfo/board
Johannes Ernst NetMesh Inc.
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