The Finance Committee of the Internet Society (ISOC) meeting was held on Thursday, 4 November 2021, at 19:00 UTC, and Friday, 5 November 2021, at 20:00 UTC (via video conference calls). Meeting was convened after a quorum was declared. Following Finance Committee members were in attendance: Laura Thompson, Treasurer and Chair, Robert Pepper, Jon Peterson and George Sadowsky.
Also present were Andrew Sullivan, ISOC’s President and Chief Executive Officer, Sae Park, Senior Director, Finance and Acting CFO, Sarah Armstrong, Internet Society Foundation’s Executive Director, Connie Kendig, Internet Society Foundation’s Operations Director (part of the meeting), Judy Cummins, Senior Manager, Budgeting & Forecasting and John Hahn, Vice President, Portfolio Manager of Goldman, Sachs & Co. LLC (part of the meeting).
Call to Order
Laura called the meeting to order.
Meeting Agenda
Laura briefly reviewed the meeting agenda:
- Q3 2021 Investment Performance Review and Market Overview
- Internet Society’s Q3 2021 Financial Results
- Internet Society’s 2022 Proposed Budget
- Internet Society Foundation’s Q3 2021 Financial Results
- Internet Society Foundation’s 2022 Proposed Budget
Q3 2021 Investment Performance Review and Market Overview
John from Goldman Sachs provided a brief update on the economic climate and the market outlook and then provided an overview of the Q3 2021 portfolio performance and investment strategies for the Internet Society and the Internet Society Foundation.
Internet Society: Q3 2021 Financial Results
Sae provided an overview of the results of the Q3 2021 financials compared to the budget for Internet Society, which included a review of significant revenue, expenses, designated funds, and cash & investments activities. For the first nine months of 2021, Internet Society’s net surplus before interest was $3.49 million, which exceeded the budget of $1.90 million. Sae noted that detailed explanations on variances to the budget for programs and operations were provided to the Finance Committee members on Wednesday, 27 October 2021. She then opened the floor to questions. The Committee raised some questions, which Andrew or Sae answered.
Internet Society: FY2022 Budget proposal review
Sae presented Internet Society’s 2022 financial budget to obtain the Committee’s consensus prior to submitting them to the full Board of Trustees. Sae reviewed the overall budgeting process and management’s strategic decisions that were reflected in the 2022 budget. The Committee asked questions that were addressed by Andrew or Sae. The 2022 budget would be sent next to the entire Board before the November Board meeting.
Internet Society Foundation: Q3 2021 Financial Results
Sae reviewed the Q3 2021 financial results of the Internet Society Foundation. The net surplus of $20.37 million as of September 30th, 2021, exceeded the 2021 budgeted amounts of $17.22 million by $3.15 million, which were attributable to higher revenue than the budget. Sae discussed the detailed financial results of revenue, expenses, and the board designated funds.
The meeting was paused at 20:05 UTC on Thursday, 4 November 2021, and reconvened on Friday, 5 November 2021, at 20:00 UTC.
Sae concluded the financial review with the Statement of Financial Positions details.
Internet Society Foundation: FY2022 Budget proposal review
Sae and Sarah presented the Foundation’s 2022 budget proposals to obtain the Committee’s consensus prior to presenting them to the full Board of Trustees. The Committee asked questions that were addressed by Sae or Sarah. The budget would next be sent to the entire Board before the November Board meeting.
Adjournment
The meeting was adjourned at 20:20 UTC on 5 November 2021.
All Board Finance Committee Meeting Minutes