Annual financial report (2012–2013)

Report from the Audit Committee

Forthcoming

Income Statement

Revenue
	Donations	$7,490.00
	Grants	$2,750.00	This does not include an additional $11,086.05 for the "Outreach 2013" grant from the Wikimedia Foundation, which is funded through the reallocation of excess grants funds remaining from the previous fiscal year.
	Event sponsorships	$500.00
	Membership dues	$590.00
	Wikimania 2012	($14.00)	Final Wikimania transactions, including refunds and receipts from uncollected accounts.
	Total revenue	$11,316.00
Expenses
	Program	$12,824.84	Includes direct program expenses as well as grants to other organizations and individuals.
	Taxes	$4,102.68	Corporate income taxes paid to the federal and DC governments for fiscal years 2010–11 and 2011–12, paid this fiscal year due to delays in securing tax-exempt status from the IRS. This expense is not expected to recur.
	Rent	$1,320.00	Office at 1629 K Street NW, Washington, DC.
	Administrative expenses	$615.32
	Technical expenses	$497.90
	Asset depreciation	$384.83	Fixed assets depreciated at a rate of 20% of original value per year.
	Transaction fees	$124.91	Fees paid to Wells Fargo, Paypal, and others.
	Total expenses	$19,870.48
Net income
	Net income (loss)	($8,554.48)

Statement of Retained Earnings

	Beginning retained earnings	$15,449.10
	Net loss	($8,554.48)
	Total retained earnings	$6,894.62

Balance Sheet

Assets
	Current assets
		Unrestricted cash	$2,302.29	Includes bank accounts and prepaid cards.
		Temporarily restricted cash	$3,133.21	Funds associated with the "Bootstrapping" and "Outreach 2013" grants from the Wikimedia Foundation.
	Non-current assets
		Fixed assets	$1,923.94
		Accumulated depreciation	($384.83)
		Net fixed assets	$1,539.11
	Total assets		$6,974.61
Liabilities and Equity
	Liabilities
		Net liabilities	$0.00
	Equity
		Retained earnings	$6,894.62
		Donated capital	$79.99
	Total liabilities and equity		$6,974.61

Statement of Cash Flows

Operating activities
	Decrease in accounts payable	($11,877.93)
	Decrease from operations	($2,811.54)
	Decrease in pre-paid expenses	($81.45)
	Total operating activities	($14,770.92)
Investing activities
	Total investing activities	$0.00
Financing activities
	Total financing activities	$0.00
Net cash flow
	Net decrease in cash	($14,770.92)

Notes

About Wikimedia District of Columbia:

Wikimedia District of Columbia is the official chapter of the Wikimedia movement in the Washington, DC area. The chapter is incorporated in the District of Columbia, which also serves as its principal place of business. The chapter serves the District of Columbia, Maryland, Virginia, Delaware, and West Virginia and conducts outreach activities to further the mission of the Wikimedia movement, including free access to the world’s information.

Internal controls:

The President and Treasurer are and were throughout the year the only persons authorized to incur expenses on behalf of Wikimedia District of Columbia. Expenses were authorized by (1) the Board of Directors or the Membership, or (2) by the President in order to conduct day-to-day business.

Taxes:

While structured as a not-for-profit membership organization, Wikimedia District of Columbia has not yet received a determination of tax-exempt status from the Internal Revenue Service, and has therefore recognized tax liabilities on its income in past years.

Depreciation:

We have applied a 20% depreciation charge to the value of our fixed assets for the first time at the end of this fiscal year. Our intent is to continue to use the straight-line method to calculate depreciation in future years.

Accounts payable:

Wikimedia District of Columbia has no lines of credit, so any recognized accounts payable are from accounts where an expense is recognized but payment is deferred for whatever reason. Expenses are recognized when we receive documentation of an expense such as an invoice or receipt.

Asset accounts:

Wikimedia District of Columbia maintains two checking account at Wells Fargo Bank, one for general purposes and the other for the "Outreach 2013" grant and associated expenses. The Wikimedia Foundation required that funds associated with the grant be held in a separate account as one of the conditions for issuing it.