Difference between revisions of "Internal:Fiscal control policy amendments"

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(draft changes to fiscal control policy, as advised by Stephen Brown)
 
(Adopted)
 
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{{header title|title=Fiscal Control Policy amendments|status=draft|toc=yes}}
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{{header title|title=Fiscal Control Policy amendments|status=historical}}
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== Resolution ==
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<div class="plainlinks" style="padding:1em; border: 3px #4f79a2 solid; background: #DEE7ED;">
   
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1. Replace [[Fiscal control policy]] 7.1 to say
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The [[Fiscal Control Policy]] is amended by:
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: 1. <u>Accounting Standards</u>. The Treasurer shall maintain financial records that enable the preparation of financial statements that are consistent with United States Generally Accepted Accounting Principles (US GAAP) sections [http://www.fasb.org/pdf/fas116.pdf FAS 116] (Accounting for Contributions Received and Contributions Made) and [http://www.fasb.org/pdf/fas117.pdf FAS 117] (Financial Statements of Nonprofit Organizations). particularly with respect to [http://www.fasb.org/pdf/fas116.pdf FAS 116] and [http://www.fasb.org/pdf/fas117.pdf FAS 117].
  
   
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1. Striking the first sentence of Article VI, Paragraph 4, and replacing it with the following text:
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The change has the following intent:
  
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:All solicitation documents shall accurately report the 501(c)(3) status of Wikimedia DC.<ref>The change reduces the chapter's responsibility. The current phrasing implies that the chapter is aware of laws in the donor's jurisdiction (which might be outside the U.S.), the tax status of the donor's income, and particularly the tax deductibility of donations made to Wikimedia DC in the donor's jurisdiction.</ref>
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* GAAP applies to financial STATEMENTS not financial RECORDS.
  
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* U.S. GAAP overall is big and heavy and unsuitable for a small nonprofit, and calls for detailed footnotes to financial statements; the proposal reduces our commitment to U.S. [[w:Generally_accepted_accounting_principles|GAAP]] overall.
  
   
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2. Striking Article VII, Paragraph 1, and replacing it with the following text:
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2. Add this sentence to 7.7:
  
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:1. <u>Accounting Standards</u>. The Treasurer shall maintain financial records that enable the preparation of financial statements which are consistent with United States Generally Accepted Accounting Principles (US GAAP) sections [http://www.fasb.org/pdf/fas116.pdf FAS 116] ("Accounting for Contributions Received and Contributions Made") and [http://www.fasb.org/pdf/fas117.pdf FAS 117] ("Financial Statements of Nonprofit Organizations").<ref>The change frames GAAP as applying to financial STATEMENTS not financial RECORDS, and removes commitment by the chapter to U.S. [[w:Generally_accepted_accounting_principles|GAAP]] outside of FAS 116 and 117. U.S. GAAP overall calls for detailed footnotes to financial statements which are said to be infeasible or unsuitable for small nonprofit organizations.</ref>
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: The treasurer shall keep a register of fixed assets owned by the chapter.
  
   
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3. Inserting the following text as Paragraph 4 of Article VII and renumbering the subsequent paragraphs accordingly:
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3. Replace 6.4 by this sentence:
  
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:4. <u>Asset Register</u>. The Treasurer shall keep a register of all valuable property owned by Wikimedia DC.
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: All solicitation documents shall accurately report the 501(c)(3) status of the organization.
  
   
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</div>
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The change reduces the chapter's responsibility. The current phrasing implies that the chapter is aware of laws in the donor's jurisdiction (which might be outside the U.S.), the tax status of the donor's income, and particularly the tax deductibility of donations made to Wikimedia DC in the donor's jurisdiction.
  
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==Notes==
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{{note|The following text is not part of the proposed resolution:}}
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<references/>

Latest revision as of 19:18, 5 June 2016

Status: Historical

Resolution

The Fiscal Control Policy is amended by:

1. Striking the first sentence of Article VI, Paragraph 4, and replacing it with the following text:

All solicitation documents shall accurately report the 501(c)(3) status of Wikimedia DC.[1]

2. Striking Article VII, Paragraph 1, and replacing it with the following text:

1. Accounting Standards. The Treasurer shall maintain financial records that enable the preparation of financial statements which are consistent with United States Generally Accepted Accounting Principles (US GAAP) sections FAS 116 ("Accounting for Contributions Received and Contributions Made") and FAS 117 ("Financial Statements of Nonprofit Organizations").[2]

3. Inserting the following text as Paragraph 4 of Article VII and renumbering the subsequent paragraphs accordingly:

4. Asset Register. The Treasurer shall keep a register of all valuable property owned by Wikimedia DC.

Notes

The following text is not part of the proposed resolution:

  1. ↑ The change reduces the chapter's responsibility. The current phrasing implies that the chapter is aware of laws in the donor's jurisdiction (which might be outside the U.S.), the tax status of the donor's income, and particularly the tax deductibility of donations made to Wikimedia DC in the donor's jurisdiction.
  2. ↑ The change frames GAAP as applying to financial STATEMENTS not financial RECORDS, and removes commitment by the chapter to U.S. GAAP outside of FAS 116 and 117. U.S. GAAP overall calls for detailed footnotes to financial statements which are said to be infeasible or unsuitable for small nonprofit organizations.
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