Author(s): Donald M. Heath
Date: 1998.2.24
Committee: Executive Committee of BoT
Document: 98-02
Revision:
Supersedes:
Status: Draft
Maintainer: D.M. Heath
Access: Unrestricted
Meeting was called to order by ISOC Chair, Frode Greisen at 8:00am ET USA.
Participants:
Frode Greisen
Scott Bradner
Haruhisa Ishida
George Sadowsky
Donald M. Heath
1. Financials
January financials were reviewed and the reported loss of $45,447 was questioned. Heath pointed out that there were expenses of $45,297 for INET’98 and no offsetting revenues. In future months, as the sponsorship revenue is received, the net income line is expected to improve and reflect a surplus.
It was further pointed out that for the month of January, we were $57,166 surplus against budget. That is, we are that far ahead of plan. Expenses were $44,242 under budget and revenues were $12,924 better than plan. This planned loss (of $102,613) is due to the timing of INET’98 expenses versus expected receipt of sponsorships.
The balance sheet shows a fund balance of a negative $38,722. It was pointed out that the deferred revenue of $1,217,812, which is registered as a liability, is the reason for this low number. This item represents membership fees collected for which the terms of fulfillment are not complete. In other words, if ISOC ceased to exist, in theory, this money could be returned – thus, the liability.
2. Cash Flow
Heath reported that cash flow projections, prior to adding expected revenue items, were positive for the four months projected. There is good evidence that ISOC has turned around to financial stability. Cash flow projections show only $50,000 per month from invoiced existing Organization members – a very conservative approach.
Further discussions yielded that it is still a major effort to collect fees from Organization members, nearly equivalent to the effort of getting new members.
3. Organization Member Status
Analysis of the funding required for baseline operation of ISOC showed that we have essentially reached our goal of having a recurring revenue base of $1,400,000. The current “Funding Update” report of 12 February 1998 shows that we are at the level of $1,308,250 and moving up.
Due to the restructuring of our Organization member fees, we have achieved this at the level of 148 members, as opposed to the goal of having 242 Organization members. Accordingly, we will continue to maintain the goal of 242 Organization members, but will raise the targeted goal of $1,400,000, to a new goal of $2,000,000.
Raising this goal is in keeping with the board’s direction to increase the reserve fund to reflect six to nine months of normal operating expenses.
4. INET’98
Due there being only volunteer resources in the management of the INET’98 efforts in Geneva, some concern has been felt. Arrangements have been concluded to get a full time project manager, resident in Geneva, which will be funded by several interested businesses and organizations in Geneva. Additionally, Hewlett Packard will volunteer one full time person dedicated to the project; Oracle, will supply a part time person; and, ITU will supply a part time liaison.
Sponsorships are still critical and effort has been increased in the area of solicitation and follow up.
5. US Government Green Paper
The green paper was officially published last Friday, 20 February 1998 and calls for responses to be submitted within 30 days, actually to 23 March 1998. Heath will finalize ISOC position in at least bullet points for discussion purposes, by 25 February 1998.
The last eight days have shown responses to the green paper to be overwhelmingly in opposition and to be supportive of the ISOC initiated effort resulting in the gTLD-MoU.
Key bullet points are: the “new IANA,” competitive registries and whether they should be non profit or profit oriented, shared registry systems or monopoly, competitive registrars (which is the shared registry concept), dispute resolution mechanisms and the lack of recognition of the gTLD-MoU capability, and the issue of Internet governance (or self-governance).
6. Membership Fees
The ISOC web site reflects the new Individual fee levels and Heath reported that as soon as it was implemented on the web, several people applied at higher levels. All renewal notices now have the new fee levels available.
Discussion on the concept of keying Organization member fees to the revenue of the Organization was discussed, but it was felt that the existing system was easier understood, less complex, and was working. No changes are being considered.
The meeting was adjourned at 9:15am ET USA.
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