internet society board of trustees financial report july 12 - 13, 2003 vienna, austria

Internet Society Board of Trustees

FINANCIAL REPORT

July 12 - 13, 2003

Vienna, Austria

12 -13 July 2003 BoT Fin. Pub July03.ppt 2

Agenda

• 2003 Financial Report• May 2003 Financial Statements

• 2003 Year End Forecast


ISOC Total Revenues, Expenses and Net Asset Trends - Good Progress

-2000000

-1000000

0

1000000

2000000

3000000

4000000

5000000

1995 1996 1997 1998 1999 2000 2001 2002 2003Bud

RevenuesExpensesNet Assets

Source: Mike Conn’s Treasurer Report


Balance Sheet Summary as of May 2003

• Cash & Cash equivalents totaled $73K at month end (unrestricted cash avail. for operations was approx. 2 weeks)

• .ORG endowment held by ISOC for PIR ($4.2M) and is held in a restricted account

• Accounts payable = $237K consists mainly of RFC Editor invoices. $130K from Q1 invoice (received in Q2) and remaining is an accrual as we’re invoiced quarterly. Expect to come current end July/early August.

• Fund Balance - Unrestricted remains negative (-$294K), but this has improved significantly over the past 2 years with a 64% improvement


P&L Summary as of May 2003• P&L surplus was -$114K ($93K behind budget) • Revenues:

– Traditional org. revs. behind budget by $252K largely as result of front end loading of revenues and the combination of accruing revenues in a period of aggressive budgeted growth

– Org. revenue decline somewhat offset by Program contributions– Platinum revenue not budgeted until Q3/Q4 & expected to be ahead

of budget by $50K - $100K

• Expenses:– Under budget by $85K, largely due to the time required to finalize

agreements between ISOC and PIR

• Year-end forecast = expect to meet budgeted surplus but increasing organizational revenue is critical to this success


2003 Year End Forecast

• Revenues – Organizations: challenging target, today’s running rate =

$0.8M vs.budget of $1.3M. Reminder - at a P&L level this means we need to bring in approx. $1.5M in new org. member revenues before year end, unless Platinum

– Platinum revenue: expect to meet or exceed budget

– Program revenues expected to offset any organizational member shortfall and will have significant added benefit of increasing ISOC’s visibility, thereby aiding future org. member recruitment efforts


2003 Year End Forecast (cont’d)

• Expenses– Non .org Expenses are on track (in fact are under

budget), but .org expenses will be higher given higher level of surplus avail. for programs - however they will also be net positive

– Revenue recognition tied to expenses

– ISOC’s PIR governance - related expenses to be recouped

• Cost savings budget of $126K on track (and better than original target of $100K)


2003 Year End Forecast (cont’d)

• Summary– Budget continues to be very aggressive given economic

and world conditions, therefore actively positioning .org surplus/programs to better and more broadly position ISOC & PIR for the future.

– Fully expect to meet budgeted surplus

– Working to further diversify our revenue stream: Seinit (thanks to Latif Ladid ), US Cybersecurity & EU security efforts, etc.


2003 Budget vs. Forecast & May ActualsK$ 2003 EOY F/C 2003 Variance

Bud July BoT May Act. to Budget

REVENUESPlat Rev (1) 250 350 - - Org Rev (2) 1,300 1,000* 289 (252)IM/Chapter Rev. 15 10 3 (3)PIR Programs 422 1,000 221 45

Total Rev (incl. Conf/Other) 2,072 2,485 628 (178)

EXPENSESIM/Chapter Exp. 60 60 16 4Programs (PIR) 420 1,000 221 0Tot. Direct 1407 1,810 513 (120)

G&A 467 470 229 34 Total Exp 1,874 2,280 742 (85)

NET SURPLUS 198 205 (114) 93

Notes:1 - Platinum revenue all budgeted in Q3 & Q42 - This is a worse case -- we can do better, and will actively work with BoT


Going forward • Board support/commitment

– Suggest I contact each board member individually to see how they can support fundraising, how staff can help, etc.

– Goal is additional $50K min. per BoT. Success here would mean another $750,000 and would make an ENORMOUS difference in operations.

• Continue relentless focus on Costs and Revenues

• Identify and pursue new creative revenue streams and roles for ISOC consistent with our values & purposes

• Success of .org initiative shows potential for such opportunities

internet society board of trustees financial report july 12 - 13, 2003 vienna, austria

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