Talk:Finance & Fundraising Policy

November 2012 revisions

The main diff showing the difference between the old policy & the proposed revised version is [1]. There are some additional points specifically discussed at the 18th Nov board meeting I will outline below, and propose wordings for. TO FINISH Community comments are welcomed before this is finally approved.

For convenience let's refer to the changes using these references:

• A) Main diff [2]
• B) Donations in kind
• C) Depreciation detail

Depreciation policy agreed in A. Further proposed to add: "A full year's depreciation is charged in the year of acquisition, and none in the year of disposal" - this is very normal, & simplifies calculation as well as better reflecting the fall in the value of assets once they are no longer new.

• D) Management letter disclosure

Currently 8.14 reads "Any management letter received from our auditors is published with a response, subject to appropriate redactions in exceptional circumstances (Administrator)". This was not done last year (2011/12 audit) or any previous year AFAIK. It was proposed to remove this completely as:

• 1) The actual letter says the contents are confidential & should not be released without the auditors permission, which, following standard industry practice, they do not want to give
• 2) The standard view in the auditing world, held by UHY our auditors, me as Treasurer, and Garfield Byrd as WMF CFO, is that management letters should be as frank as possible to be useful, & kept private to prevent them becoming a PR football. There are other considerations, such as revealing gaps in internal control, possibly leading to potential fraud etc.

In the 18/11 board discussion, it was proposed to go to: "Any management letter received from our auditors is publically summarized with a response, subject to appropriate redactions in exceptional circumstances (Administrator)". This is, in my view, better, but I can't really imagine what such a summary of these long and very technical documents would look like. I don't know examples of other charities and institutions that do this.

Our last management report, which can be "publically summarized" as "very bad", is a rather special case, as it covers, as is normal, only the period audited, in this case the year to January 2012, when the accounts were being done by the then Hon Treasurer. The office only took over accounting from February 1st, making in effect a completely new start with a new system and new procedures. Last year's management report is therefore of no real relevence to the current accounting system.

• E) Approval of expenditure - section 10. Currently covers board and staff, but not volunteer budget-holders. Wording & limit needed - any suggestions?

PLEASE LET ME FINISH THIS SECTION

As Treasurer Johnbod (talk) 19:13, 23 November 2012 (UTC)