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

A scheduled meeting of the Finance Committee of the Internet Society (ISOC) was held on Wednesday, March 16, 2016 at 13:00 UTC. In attendance were Sean Turner, Treasurer and Chair of the Finance Committee, with Hiroshi Esaki, Jason Livingood and Gonzalo Camarillo as members of the Finance Committee.

Also in attendance were Kathy Brown, ISOC’s President and Chief Executive Officer, Greg Kapfer, Chief Financial Officer, and Sandy Spector, Director of Finance. John Marshall, Trip McLaughlin and Richard Zulick from Morgan Stanley were also in attendance for the first part of the meeting.

Sean called the meeting to order.

Investment Results

John Marshall walked the Committee through the 2015 investment results for the Continuity Fund. John noted that, although a small loss for the year, the investment results for the Continuity Fund exceeded the benchmark and were within the investment allocation outlined in Internet Society’s Investment Policy. Trip McLaughlin then shared with the Committee Morgan Stanley’s outlook on current global economic trends.

Richard Zulick from Morgan Stanley walked the Committee through investment results of the $10 million PIR Board Designated Contribution, noting that the funds were held in liquid investments with a high priority set on protection of assets rather than optimizing the rate of return.

2015 Financial Results

Sandy reviewed 2015 unaudited financial results including a draft 2015 Statement of Operations and a draft Balance Sheet for December 31, 2015. Sandy noted that favorable revenue, as well as lower departmental costs resulted in a 2015 operating surplus of approximately $976K. Sandy discussed revenue results and expenditure variances in further detail, explaining that the majority of the surplus was due to higher IETF revenue and under spending of staff costs.

Sandy reviewed the financial reporting segment for Board Designated funds, including the results of spending on the Board-approved projects: Three Year Technology Plan, Branding Project, Curator and Beyond the Net Funding. Sandy noted that spending for these projects would continue to ramp up in 2016.

AOB

The Committee noted the next meeting was to be scheduled for mid-May

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