Minutes of the Meetings of the Finance Committee of the Internet Society

Finance Committee Meeting Minutes – 3 March 2022

 

The Finance Committee of the Internet Society and the Internet Society Foundation meeting was held at 17:00 UTC on Thursday, 3 March 2022 (via video conference call). In attendance were Laura Thompson, Treasurer and Chair of the Finance Committee with Jon Peterson and George Sadowsky as members of the Finance Committee. Robert Pepper sent his regrets.

Also present were Andrew Sullivan, President and Chief Executive Officer, Sae Park, Chief Financial Officer, Sarah Armstrong, Executive Director, Internet Society Foundation, and Judy Kellett, Senior Manager, Budgeting & Forecasting. John Hahn, Kate Schuler, and Abigail Pohlman from Goldman Sachs & Co. were in attendance for part of the meeting.

Call to Order

Laura called the meeting to order.

2021 Investment Performance Review and Market Outlook

John, Kate, and Abigail from Goldman Sachs reviewed the current economic climate and provided an update on the market outlook. John noted that the 2021 portfolio performance review for the Internet Society and the Internet Society Foundation was included in the presentation materials that were provided to the Finance Committee before the meeting.

CEO’s Update on Public Support Test

Andrew provided a brief update on the fundraising effort and strategies to improve the Public Support Test.

Foundation’s 2021 Financial Results (Pre-Audit)

Sae overviewed the 2021 preliminary financial results of the Internet Society Foundation. For the year ended 31 December 2021, the Internet Society Foundation’s net surplus before the interest was $25 million, which exceeded the budgeted net surplus of $21.8 million by $3.2 million. The higher than budgeted net surplus is mainly attributable to higher than budgeted funding from PIR. Sae then reviewed the details of revenue, expenses, the board-designated funds, and cash & investment activities. The Committee raised some questions, which Sae answered.

Internet Society’s 2021 Financial Results (Pre-Audit)

Sae provided an overview of the 2021 preliminary financials of Internet Society, which included a review of significant revenue, expenses, designated funds, and cash & investment activities. For 2021, the Internet Society’s net surplus before interest was $1.33 million, which exceeded the break-even budget. Sae noted that detailed explanations on variances to the budget for programs and operations were provided to the Committee members on Tuesday, 1 March 2022. She then opened the floor to questions. The Committee raised some questions, which Andrew or Sae answered.

Foundation’s Updated Investment Policy

Sarah and Sae presented the revised investment policy to implement a new investment account for the quasi-endowment fund of $50 million, as approved by the Board in November 2021. The Committee approved forwarding the revised policy to the entire Board for approval.

Any Other Business & Adjournment

With no other business, Laura adjourned the meeting at 16:21 UTC.