A scheduled meeting of the Finance Committee of the Internet Society (ISOC) was held on Wednesday, August 19, 2015 at 12:00 UTC. In attendance were Sean Turner, Treasurer and Chair of the Finance Committee, with Jason Livingood and Hiroshi Esaki as members of the Finance Committee. Gonzalo Camarillo sent his regrets.
Also in attendance were Kathy Brown, ISOC’s President and Chief Executive Officer, Greg Kapfer, Chief Financial Officer, and Sandy Spector, Director of Finance.
Sean called the meeting to order.
Q2 2015 Financial Results
Greg walked the Committee through the Q2 YTD financial results, highlighted by a $2.5 million net surplus (before investment earnings), exceeding the budgeted surplus of $0.7 million. This greater than expected surplus was largely the result of (a) a delay until Q3 of $0.8 million in IXP equipment donations, (b) other program under spending, and (c) delays in hiring. Greg further explained that the equipment donation delay had an equal offsetting impact to revenues and therefore, no impact on net surplus.
Greg then walked the Committee through the Donor Restricted Funds and Board Designated Fund activity, noting that most of the Board Designated Funds are for multi-year projects for which expenditures would occur into 2016 and even 2017.
2016 Budget Status Review
Greg reviewed the 2016 Budget status with the Committee including the budget development goals and timeline. Greg noted that the 2016 budget would be the main topic of discussion at the Executive Team Retreat in September.
Greg explained that ISOC was currently forecasting results of the remainder of 2015 as a jumping off point for the 2016 budgets. The 2015 revenue forecast projects 2015 results close to the $39 million budget. Greg also walked through examples of department forecasts that are being used to closely monitor 2015 financial performance.
The Committee agreed to meet the week of September 28th for an interim 2016 Budget review.
Quarterly Finance Committee Meeting Calendar
The Committee reviewed and had no issue with the proposed quarterly meeting calendar.
AOB
Business Process Review
Kathy informed the Committee that due to the corporate growth over the past several years, ISOC has engaged a consulting firm to perform a business process review. This review would highlight business process areas that could be updated or improved. Kathy stated that the consultant findings were currently being finalized and the report would be distributed to the Committee when complete. The next steps will be to identify those recommendations that can be implemented or begun in 2015
With no further business, the meeting was adjourned at 12:30 UTC.
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