Minutes of the Meetings of the Audit Committee of the Internet Society

A meeting of the Audit Committee of the Internet Society (ISOC) was held on Monday, 13 May 2019 at 13:00 UTC. In attendance were John Levine as Chair of the Audit Committee and Harish Pillay and Desiree Miloshevic as members of the Audit Committee.

Also in attendance were Sandy Spector, Chief Financial Officer and Sae Park, Senior Director of Financial and Corporate Reporting. Representing RSM were Al Weber, Partner and Steve Kim, Audit Manager.

Call to Order

John called the meeting to order, as quorum was present.

Review of the Annual Independent Audit

Mr. Kim explained RSM’s responsibilities and the responsibilities of ISOC’s management. Mr. Kim noted that RSM’s report included and unmodified opinion, representing the highest level of clean opinion.

Mr. Kim then gave an overview of the audit process and then reviewed the result of RSM’s audit noting that ISOC’s accounting policies were consistently applied. Mr. Kim noted that no audit adjustments or control deficiencies were found. Mr. Kim then walked through the 2018 financial statement highlights.

Mr. Kim noted reporting changes to ISOC’s Audited Financial Statements due to changes in accounting standards. In FY2018, ISOC adopted ASU 2016-14, which required changes to the presentation of net assets and addition of two new footnotes to the statements.

Mr. Kim informed the Committee of upcoming accounting pronouncements.

As Required by the Audit Committee Charter and accounting principles, John asked the Committee to enter into Executive Session. The Committee excused the members of ISOC’s management for this session. Following the Executive Session, the management participants returned.

Mr. Weber and Mr. Kim left the meeting.

Conflicts of Interest

The Audit Committee members discussed the conflicts of interest statements from the Board members and concluded that since a few statements remained outstanding further discussion would happen at the next Audit Committee meeting.

Compliance

Sandy updated the Audit Committee on the status of the Compliance Committee’s work including efforts to enhance compliance through various mechanism such as compliance training videos.

Adjournment

With no other business, the meeting adjourned at 13:35 UTC.