Standard Change: Retain accounting services for ProgCode

[stephenscapelliti]

Description

This is a proposal to contract accounting services for Progressive Coders Network and for Progressive Coders Network II.

Problem

ProgCode has not established formal books of account. Donations to ProgCode have not exceeded the threshold level of $50,000 necessary for reporting on a standard Form 990 tax return. However, ProgCode has established a 501(c)(3) entity (Progressive Coders Network II), pursuant to Issue #250, which requires the transfer of certain assets from the c4 entity to the c3 entity, and it is advisable that the asset transfer be reflected in books of account. Community-wide inquiries to recruit for these services were issued in the ProgCode Slack, and there were no responses.

Benefit

Retaining an independent contractor for accounting services will ensure compliance with IRS requirements. The accountant or accounting firm will establish formal books of account for both ProgCode c3 and c4, as well as monitor financial matters and file annual returns and other periodic reports. This will enable the community to anticipate increased revenue levels. In anticipation of the goals listed in Issue #250, increased revenue, staffing, and other revenue-based activities will be reflected in books of account for improved operations, transparency to the community, and accountability to the community and to government agencies.

Expenditure Analysis

This proposed solution would require periodic expenditures for accounting services. The purchase of an accounting software program is addressed in Issue #256 "Standard Change - Purchase and implement a ProgCode accounting software system"

Criteria:

1. An accountant and/or accounting firm qualified and skilled in preparing and analyzing financial records of a non-profit organization
2. Ability to review and analyze transactions, particularly donations, grants, and the payment of expenses
3. Report to the Directors and/or other staff, as authorized by the community, regarding all financial and tax matters of Progressive Coders Network and Progressive Coders Network II
4. Counsel and advise regarding the acquisition and use of appropriate accounting software.

Based on the above-criteria, ProgCode staff have contacted and interviewed several accountants and accounting firms, as reflected in the Accounting Services Matrix. Proposals and quotes were sought from each. Of the persons contacted, only Kristy S. Orns, CPA of Fisher Spiegel Kunkle & Gerber, PLLC in Battle Creek, Michigan provided a proposal. She quoted an hourly rate of $160.00.

• Ms. Orns recommends that ProgCode use Quickbooks, but her firm works with other accounting software programs.
• She estimates an initial charge of 2 - 3 hours of billable time for Quickbooks set up
• She estimates another 2 - 3 hours of billable time to train ProgCode personnel.
• She estimates a charge of $300 to $500 to prepare and file each standard Form 990 tax return.

The requirements of Issues #198 and #236 are applicable, as follows:

Proposals seeking consent for implementation of budget requests and/or change process should not contradict ProgCode core objective and should pass this four-pronged test when considered by operations:

1. Is this proposal non-partisan in nature? Yes
2. Is this proposal aligned with ProgCode's mission of removing the influence of big money in politics? Yes
3. Does this proposal seek to empower the grassroots by supporting the creation of open source tech? Yes
4. Is this proposal sponsored or funded by an outside organization? If yes, the source of the funding must be disclosed. No

Plan

• [x] Community discussion of all elements of this proposal at Community Operations Meetings.
• [x] Vote for consent to proceed to investigate and discuss the contracting of accounting services for Progressive Coders Network and Progressive Coders Network II, as outlined in this proposal.
• [x] Notify the community of the vote taken by posting a #team-announcement and sharing the video URL in #operations immediately following the vote for consent to proceed, in accordance with ProgCode procedures, allowing additional votes & feedback during the standard 72-hour waiting period before ratifying the vote.
• [x] Obtain formal written proposals from each accountant and/or accounting firm and provide community members access to copies of the proposals for consideration and discussion. This pilot initiative will be amended to include any additional proposals, and the date of each amendment will be included in the text above.
• [x] Vote for consent to implement the standard change to retain Kristy S. Orns, CPA of Fisher Spiegel Kunkle & Gerber, PLLC or such other accountant and/or accounting firm as may be proposed and discussed in Community Operations Meetings. If more than one candidate is considered, the community will select one by the use of ranked-choice voting.
• [x] If the vote to implement passes, the Directors shall formally accept the proposal selected by the community.
• [x] Retain this issue as an open issue for possible amendment or termination of the accounting services relationship at a later date.

Decision Making

Consent to implement a standard change per the Change Process

Optional Information

Reference link(s)

• Change Process
• Example of a completed Form 990 Tax Return

Community Discussion History

• 02.26.2017 - Issue #81 "Funding Framework"
• 05.15.2017 - Issue #198 "Four Pronged Test for Mission Alignment"
• 06.18.2018 - Issue #236 "Standard Change - Budget Expense Requests"
• 11.10.2018 - Issue #250 "Major Change: Create a ProgCode 501(c)(3) entity"
• 08.03.2019 - Issue #256 "Standard Change - Purchase and implement a ProgCode accounting software system"

[stephenscapelliti]

Consent to proceed was granted, by unanimous vote at a Community Operations meeting on June 29, 2020. The final vote was counted 72 hours following the meeting, as required under the Change Process.

[stephenscapelliti]

Tonight, July 20, 2020, Issue #257 is again on the meeting agenda for discussion and for vote for consent to implement the proposal.

• Two votes will be held. The first will be to implement the proposal to retain accounting services for ProgCode. The second will be to retain the accounting firm which provided ProgCode with a bid.
• Additional accounting service candidates may be proposed during the meeting and during the 72 hour period following the meeting.
• If none are proposed during the meeting, then a vote to contract the current candidate will be held.
• If other candidates are proposed during the 72 hour period, then the vote will be suspended until all candidates are discussed and considered by those participating in the meeting.

[LPaulson1985]

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[LPaulson1985]

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