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, May 7 at 13:00 UTC. In attendance were Jason Livingood, Treasurer and Chair of the Finance Committee, and David Farber, Sean Turner, as members of the Finance Committee.  Hiroshi Esaki sent his regrets

Also in attendance were Kathy Brown, ISOC’s President and Chief Executive Officer, Greg Kapfer, Chief Financial Officer, and Sandra Spector, Director of Finance.

Jason called the meeting to order

Review of Q1 Financial Statements and Management Report

Greg walked through the Q1 2014 financial results of a net surplus of $1.5 million.  Greg highlighted revenue results and expenditure variances.  Greg explained that the majority of the surplus was due to program under spending. Greg noted that as ISOC continues to work toward the 2015 Objectives and Initiatives that the program spending should increase. Greg noted the favorable Q1 revenue variance was also influenced by higher ISOC sponsorships and higher IETF registration revenue for IETF 92 (Dallas).

Greg then highlighted the new financial reporting segment for Board Designated, funds including the Three Year Technology Plan, Branding Project, Curator and incremental Community Grant Funding. Greg noted that minimal spending occurred in Q1 for these projects, but spending would ramp up during the year.

Continuity Fund

The Committee discussed the long-term ISOC Continuity Fund target. Greg noted that the funds had already grown from $14.1 million to $14.9 million from the $500,000 added from 2014 surplus, plus $300,000 Q1 return on investment. He recommended that the fund balance should continue to grow through such measures, but should be reviewed periodically.  Greg noted that he is scheduled to work with PIR’s financial team on their recommended level of reserve funds beginning in Q3 2015.

IETF Endowment

Greg stated that at the Endowment Investment Policy had been approved by the Board of Trustees, and that the newly named IETF Endowment is currently in a quiet period as staff prepares to explore further funding sources for the endowment.

AOB

Jason called for other business.

Adjournment

With no further business, the meeting was adjourned at 13:30 UTC.