Prepared for Nov 22, 2013 Board Meeting
OWASP FOUNDATION:�2013 Review & 2014 Planning
Prepared for Nov 22, 2013 Board Meeting
Strategic Goal: �Financial Growth - Build plan for financial growth of foundation and create new sources of income for the organization to achieve the goals of 2013 and future years.
Review of 2012 Foundation 990
Prepared for Nov 22, 2013 Board Meeting
Review of 2012 Foundation 990 –cont’d
Schedule F – Reporting expenditures on program services, grants, and fundraising outside of the US
Prepared for Nov 22, 2013 Board Meeting
Review of 2012 Foundation 990 –cont’d
Schedule R – Reporting related entities
What is a related entity? Includes “Parent” relationship where the filing org has 100% control of the non-filing org
Prepared for Nov 22, 2013 Board Meeting
Review of 2012 Foundation 990 –cont’d
Executive Director and Compensation Review
Part VI, Section B: Process and meeting minutes for determining ED Compensation does not need to be made publicly available or reported on the tax form, but needs to be documented in case of an audit. Board Chair should be responsible for maintaining this record (and any changes/review that occur annually).
Part VII, Section A: Executive Director will need to be added as an Officer. No other employees need to be listed as they do not fit the $150,000 threshold required for “key employees”.
Prepared for Nov 22, 2013 Board Meeting
Review of 2012 Foundation 990 –cont’d
Statement of revenue – How we are reporting Membership (Under Section 2, not Section 1) and why this matters
Prepared for Nov 22, 2013 Board Meeting
Review of 2012 Foundation 990 –cont’d
Statement of functional expenses – important for us and our community members to know what is going to operations vs. program services vs. fundraising
Prepared for Nov 22, 2013 Board Meeting
Review of 2012 Foundation 990 –cont’d
Lessons Learned:
1. Need to review 2012 and previous year’s taxes with new accounting firm (possibly KPMG) to determine need to file amendments. Particular areas of concern are : International expenditures, Belgian Entity (related), and membership income reporting
2. For next year should plan on filing at May 15 deadline instead of waiting until EOY deadline (Nov 15).
3. Need to update bookkeeping practices – tracking international expenditures, what goes in/out of European entity, and type of expense (operational, program, fundraising) to make reporting easier at tax time. This also will require a bit more scrutiny on reimbursement requests from community members.
QUESTIONS/COMMENTS?
Prepared for Nov 22, 2013 Board Meeting
2013 Financial Review
Revenue Sources 2013
Third level
Income
Third level
Prepared for Nov 22, 2013 Board Meeting
2013 Financial Review - Expenses
Revenue Sources 2013
Third level
Prepared for Nov 22, 2013 Board Meeting
2013 Financial Review – So What?
2013 Revenue (Estimated for EOY) - 1,823,352
2013 Expenses (Estimated for EOY) – 1,706,009
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Net $117,341
Other noteworthy metrics:
Our Revenue (and Income) increased by over 150% from last year
- Conference Revenue for AppSec USA and EU was significantly higher
- AppSec Latam was cancelled and AppSec APAC made a very small profit
- Advertising Revenue was almost non existent
Our Expenses increased from last year as well – 138% and despite overspending in a couple of areas, we were well under budget overall
- OWASP on the Move – high from Latam and EU tours
- MANY more Outreach requests than previous year
- A few operational costs went up due to increased staff
Prepared for Nov 22, 2013 Board Meeting
Changes for Smooth(er) Sailing in 2014
Prepared for Nov 22, 2013 Board Meeting
2014 Revenue Sources
Prepared for Nov 22, 2013 Board Meeting
While Conference Revenue remains our #1 source of income, we hope to start programs that will enable growth in other areas:
Revenue increase from 2013
+ $81,349 (104%)
We expect conference revenue (not overall income) to go down but Membership and other sources of revenue to go up.
2014 Expenses
Prepared for Nov 22, 2013 Board Meeting
We have broken the anticipated expenses down into subcategories for budgeting and transparency – the goal is that once the budget is approved, the staff can reallocate funds in each major “bucket” indicated by the blue lines on the budget at needed.
Expense increase from 2013
+ $196,298 (110% of 2013)
2 KEY AREAS:
Changing our interface for membership, donations, and events is critical for continued growth of our community.
Bringing on dedicated support to chapters and fundraising is critical to continued growth.
Budget Summary
The staff has worked for several weeks on the budget provided for you – and we have also discussed the operational details and timeline for implementation. I encourage you all to review and think particularly if the strategic goals of the organization will be able to be executed with this budget or if there are specific items that will need funding not included (or to the contrary, certain items that we have prioritized that you do not see as a priority for the organization).
We also have tried to set up the budget in a way that will enable the staff to provide the necessary support systems for the community but also have general “buckets” for them to ask for funds to help OWASP spread its mission around the world.
Sarah
Prepared for Nov 22, 2013 Board Meeting