Meeting (24 February 2020)

A meeting of the Finance Committee of the Internet Society (ISOC) was held on Monday, February 24, 2020 at 13:00 UTC. In attendance were Richard Barnes, Treasurer and Chair of the Finance Committee with Hans Peter Dittler, Gonzalo Camarillo, and Robert Pepper as members of the Finance Committee. Olga Cavalli sent her 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. John Hahn, Vice President, Investment Management Division and Stephanie Kenary from Goldman, Sachs & Co. LLC was in attendance for part of the meeting.

Call to Order

Richard called the meeting to order.

Internet Society: 2019 Year-End (unaudited) Financial Results

Sandy reviewed the results of the 2019 financials against budget. For the year ended on December 31, 2019, Internet Society’s net surplus before interest was $4.63 million, which exceeded the sum-zero budget amount of break even. Due to a significant investment gain for the year, net surplus after interest was $7.27 million. December 31, 2019 financial results exceeding the 2019 budgeted amounts were attributable to lower than planned focus area expenditures and personnel costs.  Sandy reviewed the details behind the 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 December 31, 2019.

Internet Society Foundation: 2019 Year-End (unaudited) Financial Results

Sandy then reviewed the 2019 financial results of the Internet Society Foundation. For the year ended December 31, 2019, the Internet Society Foundation’s net surplus before interest was $26.25M, which exceeded the budgeted net surplus of $23.51M by $2.74M. This excess was attributable to additional funding from PIR and lower than budgeted expenditures. Sandy discussed the detailed financial results of revenue, personnel and operating expenses, and the Board designated funds.

Sandy concluded the financial review with the details on the Statement of Financial Positions as of December 31, 2019.

2019 Year-End Investment Review and 2020 Outlook

John from Goldman Sachs started the presentation with a brief recap of 2019 investment performance and activities for the Internet Society and the Internet Society Foundation, including steps taken in 2019 to incorporate strategies and decisions for environmental social and governance (ESG) investing approaches. Then, Stephanie from Goldman Sachs walked the Committee through the 2019 market reviews of various investment vehicles. Stephanie finished her portion of the presentation with a high-level overview of the recession risks and outlook of the market for 2020.

John finished the presentation with a detailed review of the 2019 investment results and portfolio allocation changes with ESG integration for both the Internet Society and the Internet Society Foundation.

Adjournment 

The meeting was adjourned at 13:50 UTC.

All Board Finance Committee Meeting Minutes