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

A meeting of the Finance Committee of the Internet Society (ISOC) was held on Thursday, March 16, 2017 at 13:00 UTC. In attendance were Sean Turner, Treasurer and Chair of the Finance Committee with Hans Petter Dittler, Hiroshi Esaki, Richard Barnes, Gonzalo Camarillo and Gihan Dias as members of the Finance Committee.

Also in attendance were Kathy Brown, ISOC’s President and Chief Executive Officer, Sandy Spector, Chief Financial Officer, David Frolio, Legal Counsel and Melaku Alito, Director of Financial Reporting. The invited guests were Trip McLaughlin and John Marshall from Morgan Stanley who were in attendance for the first part of the meeting.

Sean called the meeting to order.

Investment Update from Morgan Stanley

Morgan Stanley presented the 2016 Continuity and Endowment Fund results to the Committee including a review of the current risks and returns, portfolio performance and asset allocation. John pointed out the positive investment results earned during 2016. Morgan Stanley then gave an overview of the PIR Designated Fund balance noting ISOC’s favorable 2016 return. Trip stated that ISOC’s portfolio is currently invested in vehicles of less risk and high return. Based on Morgan Stanley’s financial outlook, Trip recommended a slight reallocation between equity and fixed income assets noting that this reallocation remains within ISOC’s current investment policy. The Finance Committee agreed to discuss this recommendation and respond to Morgan Stanley shortly.

Kathy then asked that Morgan Stanley evaluate and report back on how ISOC’s current portfolio is invested in socially responsible companies. Morgan Stanley noted they will send this information to Sandy shortly.

2016 Financial Wrap Up

Sandy presented the 2016 unaudited year end financial results showing a net surplus before interest and currency of $443K. Kathy requested that this surplus be designated by the Board for the Beyond The Net. The Committee agreed to this designation which will be approved by the full Board at the next meeting.

PIR Update

Sandy gave an update on current PIR activities including renegotiation of the back end processor agreement and the wind down of Enset stating that both were well under progress and should come to a conclusion by the PIR Board meeting in April.

AOB

The Finance Committee discussed ISOC’s Public Support Test calculation from U.S. IRS Form 990 and ways to address the percentage in the future.

Adjournment

The meeting was adjourned at 14:00 UTC.