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 Friday, 05 May 2017 at 13:00 UTC. In attendance were John Levine as Chair of the Audit Committee, Walid Al-Saqaf, and Harish Pillay as members of the Audit Committee. Olga Cavalli sent her regrets.

Also in attendance were Sandy Spector, Chief Financial Officer; and Melaku Alito, Director of Financial Reporting. Representing RSM were Janette Burke, Partner and Steve Kim, Assurance Supervisor.

Call to Order

John call the meeting to order, as a quorum was present.

Review of the Annual Independent Audit

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

Ms. Burke 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. Ms. Burke noted that no audit adjustments or control deficiencies were found. Ms. Burke then walked through the 2016 financial statement highlights.

Ms. Burke noted that ISOC’s Audited Financial Statements incorporated the statements of Public Interest Registry (accepted by the PIR Board at a meeting on April 28th ). The Committee inquired as to the 2016 increase in net assets of $4.9 million. Ms. Burke noted that the majority of this increase arose from the permanently restricted endowment contributions, as well as, investment income.

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.

John and the Committee thanked the Finance staff for exemplary work.

Ms. Burke and Mr. Kim left the meeting.

Conflicts of Interest

The Audit Committee members stated their review of the conflicts of interest statements from the Board members. All statements had been received except for Ms. Munyua whose statement the Committee expected to receive shortly.

Adjournment

With no other business, the meeting adjourned at 14:00 UTC.