Wikimedia Foundation Audit Committee/2018-07-13

Wikimedia Foundation

Audit Committee Meeting

July 13, 2018

8:30 - 10:00 am PDT

Participating in Person: Jaime Villagomez, Tony Le, Amy Vossbrinck - Wikimedia Foundation

Jeremy Peters, James Womboldt - KPMG

Participating Remote: Kelly Battles, Julian Singh, James Heilman, Christophe Henner, Michael Snow

Agenda:

● Approve Minutes from the June 5 meeting

● KPMG Audit Plan Presentation

● Scheduling for the next Audit Committee Meeting

Approval of the Minutes

The minutes for the June 5, 2018 were unanimously approved.

KPMG Audit Plan Presentation

Jeremy Peters, Engagement Audit Partner, presented the client services team, the agreed audit fees per the engagement letter and the general audit committee inquiries such as audit committee’s views about fraud risks, areas that warrant particular attention and additional procedures to be undertaken. Jeremy also noted that there will be an opportunity for dialogue with the Audit Committee and reviewed the audit responsibilities held by Management, the Audit Committee and KPMG.

Additionally, James Womboldt, Audit Manager, discussed the risk assessment due to fraud and error and significant audit areas KPMG will be testing including, Accounting for contributions, Payroll and procurement, Cash and cash equivalents, Fair value of investments, Fixed assets, Net assets, Financial statement disclosures. He also went through the audit timeline and it is anticipated that the audit will be complete by the end of September.

James further presented the new accounting standards below but noted that the changes will not have significant impact to the Foundation.

● Lessees will be required to recognize most leases on the balance sheet.

● A change in financial statement presentations, including how the Foundation will report net asset classes, expenses, investment return, and liquidity.

● A clarification regarding non-exchange revenue transactions - a donations are considered a “non-exchange revenue transaction”.

● It is possible that implementation costs for Cloud service will need to be expensed rather than capitalized.

Lastly, KPMG confirmed that it has an independent relationship with the Foundation.

A New Audit Committee Chair

The committee thanked Kelly for all her work with the committee. We will welcome Tanya Capuano in September as the new Audit Committee Chair.

Scheduling the Next Audit Committee Meeting

The next meeting will be in September and will cover:

● The Audit results

● A full agenda for Audit Committee Meetings for FY18-19

● Possibly a new Enterprise Risk Management Initiative

Respectfully submitted, Amy Vossbrinck