Wikimedia Foundation Audit Committee/2020-02-07
Wikimedia Foundation
Audit Committee Meeting
February 7, 2020
10:30 am - 12:00 pm PDT 18:30 - 20:00 UTC
Participating in Person: James Baldwin, Tony Le, Katherine Maher, Janeen Uzzell, Jaime Villagomez, Amy Vossbrinck
Participating Remotely: Tanya Capuano, Shani Evenstein Sigalov, Ryan Merkley, Maria Sefidari, Michael Snow, Raju Narisetti, and Tony Sebro
Agenda:
Financial Update
As of the end of Q2 the Foundation generated a moderate surplus of $9.7M - relative to our YTD budget. This was principally resulted from our Big English fundraising campaign and spending under runs. Other key highlights: Our Tuning Sessions with other T&C efforts are reinforcing our efforts to fill our vacancies. We ended Q2 with a staff of 370. We increased our budget spending due to expenses related to security, the unblock Turkey initiative, and other primarily movement litigation matters. We experienced some under-budget spending in the 1st half of FY19-20 in the areas of outside contract services. FY 19-20 Projection: We are projecting a continued emphasis on programmatic spending with a programmatic ratio(% programmatic expense per total expense) of 75%. Revenue is projected to be slightly above our target of $111M. Expenses are projected to be below our budget of $111M. The budget underrun has provided funds to support several new projects that previously were unplanned under our Annual Plan: Misinformation Program Abstract Wikipedia Paid API System of performance changes
Annual Plan Timeline
We are designing our FY20-21 Annual Planning process to focus on creating a less time intensive process for the Staff, building off the continuity from the Medium Term Plan and our Tuning Sessions and our up-to-date projections to set clearer budget expectations. Furthermore, the Annual Plan will describe the organization’s objectives and key results. Process Highlights: February - Prepare Foundation budget guardrails, key OKRs (objectives and key results) assessment, and new proposals March - April - Prioritization, Planning and, Budgeting First week in May - Draft of the Annual Plan to the Audit Committee for review Third week in May - Presentation to the Board of the Annual Plan June 30 Deadline for Board approval Another feature of this year’s annual plan will be disaggregation of core services into our new OFR(Organization Efficacy & Resilience) Framework. The framework establishes our approach to support the following priority areas: Mission Support
Technical Infrastructure
Fundraising/Revenue
Shared Services
Risk Management
Cash & Investment Update
The Foundation’s total cash and investment balance increased to $203.6M. Cash and Money Market - $90.3M. Short term and long term Investments - $113.3M. The current balance supports 17 - 18 months of operating expenses. Our investment continues to comply with the Investment Policy Statement 6-9 months operating cash. Average maturity of 2 years for Short Term Fixed Income. Maintain sustainability investment objective.
Business Operations Update
Improvements and Achievements include: The launch of Coupa for expense reporting (in November) and Procurement Services and Tangible Goods (in December). Providing User training for Coupa (in person, training manuals and a recorded training session). Full adoption - all business arrangement activities and expense reporting are processed through Coupa. Going Forward: Continue quarterly trainings. Prepare a project plan for support, maintenance, and change management. Evaluate activities to ensure control activities are executed per the designed processes. Obtain users’ feedback and evaluate for continuous improvement until we achieve repeatability.
Enterprise Risk Management (ERM) Update
In Q2 we hit our progress goals associated with our ERM program. We have had active participation by all teams at the Foundation. Socialized ERM process and risk register with 40% of the potential risk owners (Directors, VPs and C-Levels). Made a decision on an ERM Platform. By June 30, 2020 all risk owners will be engaged in ERM. Some risks will need to be addressed by more than one team. As part of the Annual Plan, as described under our Annual Plan update, risk management is one of the planning categories, which will establish the department's risk mitigation plans. Including OKRs. Jaime will send information about the work done by staff, the C Team, and the Board regarding ERM to the new Audit Committee member.
Remainder FY 19-20 Audit Committee Calendar
March 2020 Focus* Form 990 - presented by KPMG Audit Committee Volunteer Renewal Investment Update Risk Management Update May 2020 Focus* FY20-21 Annual Plan and budget approval/endorsement for the full Board New Donation Policy(?) - recommendation coming from another Committee Investment Update (Maybe) Risk Management
- March and May dates will be related to Board Meeting dates - Poll will be sent to set dates.
Respectfully submitted, Amy Vossbrinck