A meeting of the Finance Committee of the Internet Society (ISOC) was held on Wednesday, November 1, 2019 at 13:00 UTC. In attendance were Richard Barnes, Treasurer and Chair of the Finance Committee with Hans Peter Dittler as a member of the Finance Committee. Gonzalo Camarillo, Olga Cavalli, and Robert Pepper sent their regrets.
Also, in attendance were ISOC staff Andrew Sullivan, ISOC’S President and Chief Executive Officer, Sandy Spector, Chief Financial Officer, and Sae Park, Senior Director, Finance and Corporate Reporting. Sarah Armstrong, Executive Director of the Foundation was present for part of the meeting. John Hahn, Vice President, Investment Management Division from Goldman, Sachs & Co. LLC was also in attendance for part of the meeting
Call to Order
Richard called the meeting to order.
Meeting Agenda
Sandy briefly reviewed the meeting agenda:
- Financial Advisor Update
- Internet Society’s Q3 Financial Results
- Internet Society’s 2020 Budget Proposal
- Foundation’s Q3 Financial Results
- Foundation’s 2020 Budget Proposal
Financial Advisor Update
John Hahn from Goldman, Sachs & Co reviewed the changes in the draft investment policy. These updates reflect the Committee’s conformation on the environmental, social, and governance (ESG) investment methodology alignment and integration.
The Committee and the advisor discussioned what would be an appropriate level of detail to be included in the policy on the ESG investment alignment. The Committee plans to review aligning the investment objectives to the organization’s mission statement to provide a broad guideline on ESG investment methodology. The next steps will include the Committee to finalize the changes to the investment policy and provide a guideline any ticker restrictions to the financial advisor.
John left the meeting.
Internet Society: Q3 2019 Financial Results
Sandy reviewed the results of the Q3 2019 financials compared to the budget. For the first nine months of 2019, Internet Society’s net surplus before interest was $5.75 million, which exceeded the budget of $1.42 million by $4.33 million. Due to investment gains, net surplus after interest was $7.80 million. September 30, 2019 financial results exceeding the 2019 budgeted amounts were attributable to lower than planned focus area expenditures and personnel costs. Sandy then discussed the detailed financial results of revenue, focus area expenses, personnel & operating costs, temporarily restricted funds, and the board designated funds.
Sandy concluded the financial review with the details on cash, investment balances, and the Statement of Financial Positions as of September 30, 2019.
Internet Society: FY2020 Budget proposal review:
Sandy presented the organization’s 2020 financial budget to obtain the Committee’s consensus prior to presenting them to the full Board of Trustees. The Committee agreed to present the proposed budget to the full Board of Trustees at the upcoming board meeting later this month.
Internet Society Foundation: Q3 2019 Financial Results
Sarah Armstrong, Executive Director of the Internet Society Foundation, joined the call.
Sandy reviewed the results of the Q3 2019 financial report of the Internet Society Foundation. September 30, 2019 financial results exceeding the 2019 budgeted amounts were attributable to lower than planned expenditures. Sandy discussed the detailed financial results of revenue, expenses, and the board designated funds.
Sandy concluded the financial review with the details on the Statement of Financial Positions as of September 30, 2019.
Internet Society Foundation: FY2020 Budget proposal review
Sandy presented the Foundation’s 2020 budget proposals to obtain the Committee’s consensus prior to presenting them to the full Board of Trustees. Sandy concluded the budget reviews with the details on the expected cash balance at year-end in 2020.
Sarah discussed that the Foundation expects to ramp up activities in 2020 and undertake certain project funding that was traditionally handled by ISOC. The proposed budget portrays a more realistic picture for the Foundation incorporating Foundation’s strategic operating plans for 2020.
The Committee consented to present the proposed budget to the full Board of Trustees at the upcoming board meeting later this month.
Adjournment
The meeting was adjourned at 14:42 UTC.
All Board Finance Committee Meeting Minutes