A meeting of the Finance Committee of the Internet Society (ISOC) was held on Monday, October 28, 2013 at 16:00 UTC. In attendance were Jason Livingood, Chair of the meeting, Rudi Vansnick and Lynn St.Amour (ex--officio)as member of the Finance Committee. Bert Wijnen and Dave Farber, sent their regrets.
Also in attendance were Walda Roseman, Chief Operating Officer, Greg Kapfer, Chief Financial Officer, Karen Rose, Sr. Director, Strategic Development & Business Planning, Lynn McNair, Senior Director, Philanthropy and Partnership Development and Sandy Spector, Director, Finance
Call to Order
Jason called the meeting to order.
Review of Proposed 2014 Business Plan Greg walked the Committee through the financial sections of the 2014 Business Plan including the Summary and Detailed Statement of Activities. Greg explained for 2014, ISOC would report separately from the departments a new category of “Fulfillment Costs” associated with grants as an offset of gross revenue. Greg stated that ISOC’s business plan results in a positive net income. Greg continued to walk through the details of the Business Plan including revenue assumptions, departmental changes in core projects and staffing. Greg also walked through ISOC’s three-year outlook from 2014 to 2016.
Rudi questioned the planned increase in Grant Revenue in 2014 to which Walda and Lynn McNair responded that the 2014 goal is obtainable as ISOC’s Philanthropy and Partnership Development team was now closely working with the ISOC programme staff to better align the funding sources with funded programmes.
Jason asked about staff’s comfort level with the outlook for PIR revenue growth. Greg stated the PIR has indicated that its level of contribution would remain level from 2014 through 2016 and growth thereafter would come as .NGO investment lessened. Then, in a response to Jason’s question about plans for individual members, Walda stated ISOC was rebooting the individual membership efforts, the revenue impact of which would be seen in 2015 forward. Jason also encouraged that the Business Plan include a deeper explanation of staffing plans.
The Committee members said they supported the high level financial presentation, with Jason to prepare a Committee summary for the Board. Lynn St. Amour then thanked the Committee for all the input and support during the Business Plan process.
Investment of Non-Recurring $10 million from PIR
Greg presented Morgan Stanley’s suggested investment of the $10 million contribution from PIR as a mix of short-term investment grade bonds (50% AA rated investments, 50% A rated investments). The term of the investments would be “laddered” to mature periodically over the next 24 months. If not used, the funds could be reinvested in similar short-term increments.
The return on this investment over the 24-month period is estimated to low, but the principle would be secure.
Jason and Rudi agreed that this was a sound plan that should be moved forward.
Future Meeting Dates and Times
The Committee discussed the next meeting being Tuesday, November 12th including discussion on Q3 Financial Results and annual review of currency protection options, specifically Swiss Francs.
AOB
Jason called for any other business.
Adjournment
With no other business, the meeting was adjourned at 17:00 UTC.
All Board Finance Committee Meeting Minutes