Difference between revisions of "Finances"

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Detailed records of income (including donations) and expenditure by the Foundation are kept in accordance with UK accounting standards. The Foundation has a legal obligation to publish its accounts annually at Companies House.
 
Detailed records of income (including donations) and expenditure by the Foundation are kept in accordance with UK accounting standards. The Foundation has a legal obligation to publish its accounts annually at Companies House.
   
The majority of the Foundations income comes from the annual State of the Map conference in the form of conference fees and corporate sponsorship. Periodic fundraising appeals for hardware have also elicit a good response.
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The majority of the Foundation's income comes from donations and membership. Donations come in two kinds - regular donations we receive all year round, and specific hardware donations in response to occasional fundraising appeals.
   
  +
It is worth noting that there's a lot of OpenStreetMap funding that does not get channelled through the Foundation, such as funds being made available to local chapters or related organisations, or businesses allowing their employees to spend time working on OSM related matters.
Our income is from a variety of sources and we continually strive to identify new funding channels. Currently these include personal donations, corporate sponsorship, donations of hardware and bandwidth, commission from retail affiliation schemes (Storage Depot, Amazon), foundation membership fees and most recently the State of the Map conference (registration fees and sponsorship).
 
   
 
When the Foundation was formed the membership was polled about how income should be spent and we received a mandate to spend 60% of income on hardware, 20% on promotion and 20% on legal matters. Currently, the Foundation’s expenditure is mainly on server hardware, and activities that promote the project (typically, travel expenses for speaking engagements, board meetings and the like).
It is probably appropriate now to publish management accounts on a quarterly basis.
 
   
  +
== Treasurer's Report ==
The treasurer tries to personally acknowledge as many donations as he can and, where possible, gives an indication of how that donation is likely to be spent.
 
   
  +
These are human-readable reports prepared by the OSMF treasurer for each AGM. They usually cover the full finances for the previous year plus a partial report on the finances of the AGM year.
Historically, not all funding gets channelled through the Foundation. For example in 2006 Multimap funded Steve Coast directly to spend some of his time working on the project. Another example, the Foundation submitted a proposal to Digital Pioneers and won funding in 2007 to stimulate mapping parties in the Netherlands. The funding went directly to Stichting Vrijschrift, a Dutch non-profit organisation, who actually had the responsibility for making the mapping parties happen there.
 
   
  +
*[[Annual General Meetings/2021/Treasurer’s report|Treasurer's Report for the December 2021 AGM]]
When the Foundation was formed the membership was polled about how income should be spent and we received a mandate to spend 60% of income on hardware, 20% on promotion and 20% on legal matters. Currently, the Foundation’s expenditure is mainly on server hardware, and activities that promote the project (typically, travel expenses for speaking engagements, board meetings and the like).
 
  +
*[[Annual General Meetings/2020/Treasurer’s report|Treasurer's Report for the December 2020 AGM]]
  +
*[[/Treasurer's Report for the December 2019 AGM|Treasurer's Report for the December 2019 AGM]]
  +
* [[/Treasurer's Report for the December 2018 AGM|Treasurer's Report for the December 2018 AGM]]
  +
* [[/Treasurer's Report for the December 2017 AGM|Treasurer's Report for the December 2017 AGM]]
  +
* [[/Treasurer's Report for the December 2016 AGM|Treasurer's Report for the December 2016 AGM]]
  +
* [[/Treasurer's Report for the December 2015 AGM|Treasurer's Report for the December 2015 AGM]]
   
  +
== Independent Volunteer Auditor's Report ==
The project can always benefit from more hardware and this is where most of the funding goes. Personally, I (writes 80n) am not keen on tapping contributors for donations since they already made their donations of time and effort to add map data. In this respect my belief is that beneficiaries of the map data should fund the project. We are indeed starting to see sponsorship from the likes of MultiMap, Google and Yahoo although the reality is that we still need to rely on donations from contributors, and judging by the funding model of projects like Wikipedia will probably always need to.
 
   
  +
The work of the accountant and treasurer are checked by an independent volunteer auditor from the OSM community.
== Expenditure ==
 
   
  +
* [[Media:Independent Volunteer Auditor's Report 2017.pdf|Independent Volunteer Auditor's report for the 2017 finances]]
It was agreed at an irc meeting on July 11, 2006 that spending over the next 12 months should be apportioned roughly as follows. The Board agreed to maintain this ratio for the 2007-8 and 2008-9 year:
 
  +
 
== Expenditure / Budget ==
  +
  +
When OSMF was founded, it was agreed that spending should be apportioned roughly as follows:
   
 
* Legal 20%
 
* Legal 20%
 
* Hardware 60%
 
* Hardware 60%
 
* Promotion (speaker’s expenses etc) 20%
 
* Promotion (speaker’s expenses etc) 20%
  +
  +
This ratio was deviated from in later years, and detailed budgets were set up.
  +
  +
* [[Media:Budget 2017.pdf|Budget 2017]]
  +
* [[Media:Budget 2016.pdf|Budget 2016]]
  +
* [[Media:Budget 2015.pdf|Budget 2015]]
   
 
== Income and Balance Sheets ==
 
== Income and Balance Sheets ==
  +
* [[/Income 2009|Income 2010]]
 
  +
=== 2020 ===
* [[/Balance Sheet 2009|Balance Sheet 2010]]
 
  +
  +
* [[Media:OSMF directors report and unaudited financial statements year ended 20201231.PDF|Official Financial Statement 2020]](PDF as submitted to HMRC - contains income and balance sheet)
  +
  +
===2019===
  +
  +
* [[Media:OSMF report of directors and unaudited financial statements for year ended 20191231.pdf|Official Financial Statement 2019]](PDF as submitted to HMRC - contains income and balance sheet)
  +
  +
=== 2018 ===
  +
  +
* [[Media:Financial Statement 2018.pdf|Official Financial Statement 2018]] (PDF as submitted to HMRC - contains income and balance sheet)
  +
  +
=== 2017 ===
  +
  +
* [[Media:Financial Statement 2017.pdf|Official Financial Statement 2017]] (PDF as submitted to HMRC - contains income and balance sheet)
  +
  +
=== 2016 ===
  +
  +
* [[Media:Financial Statement 2016.pdf|Official Financial Statement 2016]] (PDF as submitted to HMRC - contains income and balance sheet)
  +
  +
=== 2015 ===
  +
  +
* [[Media:Financial Statement 2015.pdf|Official Financial Statement 2015]] (PDF as submitted to HMRC - contains income and balance sheet)
  +
  +
Notes:
  +
  +
* Expenditure for "telephone and computer charges" is misleading since two yearly Imperial College invoices are contained in the 2015 window; normally the amount would be half that per year.
  +
* The yearly result looks exceptionally good but that is largely because £58k have been collected in a server donation drive, and only £20k of that have been spent, so in your head reserve £38k for future hardware spending.
  +
* Doesn't contain depreciation and taxes.
  +
  +
=== pre-2015 ===
  +
  +
* [[/Income 2014|Income 2014]] preliminary
  +
* [[/Balance Sheet 2014|Balance Sheet 2014]] preliminary
  +
* [[Media:Financial Statement 2014.pdf|Official Financial Statement 2014]] (PDF as submitted to HMRC)
  +
  +
* [[/Income 2013|Income 2013]]
  +
* [[/Balance Sheet 2013|Balance Sheet 2013]]
  +
  +
* [[/Income 2012|Income 2012]]
  +
* [[/Balance Sheet 2012|Balance Sheet 2012]]
  +
  +
* [[/Income 2011|Income 2011]]
  +
* [[/Balance Sheet 2011|Balance Sheet 2011]]
  +
 
* [[/Income 2010|Income 2010]]
 
* [[/Balance Sheet 2010|Balance Sheet 2010]]
   
 
* [[/Income 2009|Income 2009]]
 
* [[/Income 2009|Income 2009]]
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== OSMF policy on expense claims ==
 
== OSMF policy on expense claims ==
 
 
The Inland Revenue defines an allowable business expense as one that has been incurred wholly (entirely), exclusively and necessarily for business purposes ("business" means standard OSMF actvities here).
+
The Inland Revenue defines an allowable business expense as one that has been incurred wholly (entirely), exclusively and necessarily for business purposes ("business" means standard OSMF activities here).
 
OSMF will pay reasonable out-of-pocket expenses that are incurred during normal activities for the Foundation, provided a VAT invoice and/or receipt is also supplied with the claim.
 
OSMF will pay reasonable out-of-pocket expenses that are incurred during normal activities for the Foundation, provided a VAT invoice and/or receipt is also supplied with the claim.
 
=== Examples ===
 
=== Examples ===
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=== Non-member Entertaining ===
 
=== Non-member Entertaining ===
 
 
Any expenditure where a non-member (that is anyone who is not a member of OSMF e.g. supplier) is not allowed by the Inland Revenue as a valid company expense and is counted as part of the profit and taxed accordingly. VAT cannot be reclaimed either.
+
Any expenditure on entertaining a non-member (that is anyone who is not a member of OSMF e.g. supplier) is not allowed by the Inland Revenue as a valid company expense and is counted as part of the profit and taxed accordingly. VAT cannot be reclaimed either.
 
It is therefore very important to differentiate between an overhead expense and an entertaining expense.
 
It is therefore very important to differentiate between an overhead expense and an entertaining expense.
   
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=== How to claim your expenses ===
 
=== How to claim your expenses ===
   
  +
Ask the treasurer for a Xero expense account.
Get your expense form here: ([http://blog.osmfoundation.org/wp-content/uploads/2011/05/OSMF-Expenses-Claim-Form_v1.odt ODT]/[http://blog.osmfoundation.org/wp-content/uploads/2011/05/OSMF-Expenses-Claim-Form_v1.pdf PDF]/[http://blog.osmfoundation.org/wp-content/uploads/2011/05/OSMF-Expenses-Claim-Form_v1.doc DOC])
 
   
When making a purchase ensure that you ask for a vat invoice (this should mean that it will contain all the details required for accounting purposes) or at the very least a vat receipt. A credit card payment receipt is not usually sufficient, but they are sometimes.
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When making a purchase ensure that you ask for a VAT invoice (this should mean that it will contain all the details required for accounting purposes) or at the very least a VAT receipt. A credit card payment receipt is not usually sufficient, but they are sometimes.
 
Details normally required are:
 
Details normally required are:
 
* Name of company
 
* Name of company
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* Total
 
* Total
 
* VAT charged or the VAT rate included in the total
 
* VAT charged or the VAT rate included in the total
Complete the OSMF Expenses Claim Form ([http://blog.osmfoundation.org/wp-content/uploads/2011/05/OSMF-Expenses-Claim-Form_v1.odt ODT]/[http://blog.osmfoundation.org/wp-content/uploads/2011/05/OSMF-Expenses-Claim-Form_v1.pdf PDF]/[http://blog.osmfoundation.org/wp-content/uploads/2011/05/OSMF-Expenses-Claim-Form_v1.doc DOC]), attach all invoices/receipts (or scan and email provided they are legible - DO keep the originals) and submit to the treasurer for re-imbursement.
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Complete the Xero Expenses Claim Form, attach all invoices/receipts (or scan and email provided they are legible - DO keep the originals) and submit to the treasurer for re-imbursement.
Mileage claims can be made on the same form by recording each journey, the actual mileage and claiming 45p per mile
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Mileage claims can be made on the same form by recording each journey, the actual mileage and claiming 45p per mile.
 
[[Category:Finance]]
 
[[Category:Finance]]

Latest revision as of 10:27, 13 July 2022

Detailed records of income (including donations) and expenditure by the Foundation are kept in accordance with UK accounting standards. The Foundation has a legal obligation to publish its accounts annually at Companies House.

The majority of the Foundation's income comes from donations and membership. Donations come in two kinds - regular donations we receive all year round, and specific hardware donations in response to occasional fundraising appeals.

It is worth noting that there's a lot of OpenStreetMap funding that does not get channelled through the Foundation, such as funds being made available to local chapters or related organisations, or businesses allowing their employees to spend time working on OSM related matters.

When the Foundation was formed the membership was polled about how income should be spent and we received a mandate to spend 60% of income on hardware, 20% on promotion and 20% on legal matters. Currently, the Foundation’s expenditure is mainly on server hardware, and activities that promote the project (typically, travel expenses for speaking engagements, board meetings and the like).

Treasurer's Report

These are human-readable reports prepared by the OSMF treasurer for each AGM. They usually cover the full finances for the previous year plus a partial report on the finances of the AGM year.

Independent Volunteer Auditor's Report

The work of the accountant and treasurer are checked by an independent volunteer auditor from the OSM community.

Expenditure / Budget

When OSMF was founded, it was agreed that spending should be apportioned roughly as follows:

  • Legal 20%
  • Hardware 60%
  • Promotion (speaker’s expenses etc) 20%

This ratio was deviated from in later years, and detailed budgets were set up.

Income and Balance Sheets

2020

2019

2018

2017

2016

2015

Notes:

  • Expenditure for "telephone and computer charges" is misleading since two yearly Imperial College invoices are contained in the 2015 window; normally the amount would be half that per year.
  • The yearly result looks exceptionally good but that is largely because £58k have been collected in a server donation drive, and only £20k of that have been spent, so in your head reserve £38k for future hardware spending.
  • Doesn't contain depreciation and taxes.

pre-2015

OSMF policy on expense claims

The Inland Revenue defines an allowable business expense as one that has been incurred wholly (entirely), exclusively and necessarily for business purposes ("business" means standard OSMF activities here). OSMF will pay reasonable out-of-pocket expenses that are incurred during normal activities for the Foundation, provided a VAT invoice and/or receipt is also supplied with the claim.

Examples

  • Replacing inexpensive items
  • Mileage. This should be calculated by taking a mileage reading when you start and again when you finish your journey. Mileage is paid at the maximum allowed by Inland Revenue (without incurring a tax liability):
    • 45p/mile for the first 10,000 miles per annum
    • 25p/mile for mileage above 10,000 miles per annum
  • Essential travel on behalf of OSMF meetings by public transport at economy class
  • Car parking

Non-member Entertaining

Any expenditure on entertaining a non-member (that is anyone who is not a member of OSMF e.g. supplier) is not allowed by the Inland Revenue as a valid company expense and is counted as part of the profit and taxed accordingly. VAT cannot be reclaimed either. It is therefore very important to differentiate between an overhead expense and an entertaining expense.

Purchases on behalf of the company

Once a decision is made, most purchases, of goods or services, should preferably be processed through existing suppliers with whom OSMF has agreements, using the normal procedure of gaining internal authorisation and thus enabling the treasurer to manage the payment.

There may be occasions where a new supplier is sourced in which case the treasurer should be asked to open an account with the supplier and, if there is an urgent purchase required, to organise payment by the company. If the above procedures are not followed you risk incurring an expense for which OSMF is not prepared to re-imburse you.

Cash Advances

Advances of cash should be exceptional and the full amount accounted for by promptly providing VAT invoices/receipts. Any surplus should be immediately returned to OSMF. When in doubt obtain prior authorisation before buying.

How to claim your expenses

Ask the treasurer for a Xero expense account.

When making a purchase ensure that you ask for a VAT invoice (this should mean that it will contain all the details required for accounting purposes) or at the very least a VAT receipt. A credit card payment receipt is not usually sufficient, but they are sometimes. Details normally required are:

  • Name of company
  • Address
  • VAT number
  • Itemised purchases
  • Total
  • VAT charged or the VAT rate included in the total

Complete the Xero Expenses Claim Form, attach all invoices/receipts (or scan and email provided they are legible - DO keep the originals) and submit to the treasurer for re-imbursement. Mileage claims can be made on the same form by recording each journey, the actual mileage and claiming 45p per mile.