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Board of TrusteesBoard Meeting 22ISOC 2001 BudgetISOC DOcument Title: ISOC 2001 Budget Author(s): Michael E. Conn, Lynn St Amour Date: 2000.11.26 Committee: BoT Document: mtg22-04 Revision: 1.0 Supersedes: Status: Meeting Paper Maintainer: Mike Conn Access: Unrestricted ISOC Trustees and Vice Presidents, Attached is the proposed ISOC budget for 2001 that I plan to present to you at our meeting in San Diego next month. Lynn, Don and our new accountant, Bob Vaughan worked hard to develop this budget. The 2001 ISOC budget is aliened into our new four pillars of operation; Standards, Membership, Education & Training and Public Policy. This budget takes advantage of reduced headcount to improve our cash position while challenging us to continue the financial momentum we have built with our Platinum and Organizational Members. Realizing this budget would produce a $328K profit for ISOC in 2001. It will likely take us two to four more years to totally recover from the serious loss caused by the 1999 INET conference in San Jose. The 1999 losses placed ISOC into a negative fund balance of $1,086K. This year ISOC has turned INET back into a positive operation and INET 2001 should be the same. With the help of our Platinum Members, ISOC has paid off our backlogged account payables and we expect to be in the "Black" on our 2000 Income Statement. The proposed 2001 budget will build on this momentum and reduce ISOC's negative fund balance to approximately $700K while making valuable investments such as a half a million dollars to the RFC Editor. One of the keys to making this budget a reality is to continue to recruit new organizational members. With the delay in replacing Don Heath and the reduction in ISOC headcount, I encourage all of us to help find and recruit new organizational members. By continuing to increase our Platinum and Organizational membership revenues, ISOC should have a solid financial year in 2001 while making a positive contribution to the advancement of the Internet. Also attached is a document that list the ISOC Activity Analysis by Pillar. Below are additional notes on 2001 ISOC budget. Michael E. Conn, ISOC Treasurer Additional Information on the proposed 2001 ISOC Budget: REVENUES: Organization Revenues: Total 2001 Organizational revenue is planned at $2.0M ($650K in Platinum members and $1.35M in 'traditional' org. member revenues).
(Note: The reduction of 'traditional' member revenues is caused by current members upgrading to the Platinum program. Platinum revenues of $0.65M are already promised and expected to come in late in the year.) REVENUE ALLOCATIONS: Total Org. revenues incl. Platinum contributions have been allocated amongst the 'Pillars' as follows:
INDIVIDUAL MEMBER REVENUES: Individual member revenues have stayed relatively constant at $220M despite approx. an 8% growth in member numbers year on year. This is the result of a higher percentage of our members coming from Developing countries and we believe this is a reasonable budget for 2001 having examined recent trends and evaluated the chapter efforts.
CONFERENCES: - INET the profit for INET 2000 after all fully loaded staff costs are taken into account is expected to be approximately $200K. The net profit from INET 2001 is forecasted to be $190K, again after all fully loaded staff costs are taken into account. ISOC's on a revenue sharing model vs. a profit sharing model and total costs have been reduced considerably through scaling back many of the 'extras' such as the gala and lunches, etc. A local 'organizer' is assuming all financial liability and all costs except for our support staff costs. A summary of the INET 2001 budget is as follows:
ISOC will receive $240K as our % of revenues plus reimbursement for $50K in expenses to put towards our costs. We expect to net a minimum of $190K after fully loaded staff costs have been paid. This profit could be slightly understated but given recent staff changes we decided to take a conservative approach. - NDSS made approximately $20K profit in 2000 and is expected to make approximately $30K in 2001. - Future (INET) Conferences - expect sponsorships of $75K in 2001 for a 2002 conference, this would be used to fund expected costs in 2001 of $65K (max.) to support the development of these conferences. - Education/workshops - as we're in the process of evolving our activities in this area it may be necessary to fund some of these activities (staff costs) before recouping them fully in sponsorships or registrations. Therefore, we've forecasted only $25K in revenues but $62K in expenses. 2001 ISOC EXPENSES:
Total 2001 expenses are budgeted for $2.6M vs. $3.0M forecasted for 2000, a total reduction of $400K. The major changes are shown below.
The budget includes one executive position vs. two in previous years. The expenses of the Geneva office are now fully integrated by activity (the revenues were integrated in 2000). G&A: A significant portion of what were previously categorized as G&A costs have been re-allocated ($400K) as all salary related benefits and corresponding rent and telephone charges are now tied to the individual and these 'fully-loaded' salary costs are assigned to the pillars according to the specific activities of each individual. For example, the salary and overhead cost of ISOC staff person who works strictly on Membership is carried in the "Indiv/Chap admin" expense line rather than the G&A line. Remaining G&A costs are $520K and the major categories are outlined below:
Total of detail above: $447K broken out vs. total of $520K. PROMOTIONS & PUBLICATIONS: These items are budgeted at this years level ($300K in total) which covers OTI, e-OTI, and the web site and this is really the minimum we need to be effective.
ISOC ACTIVITY ANALYSIS BY PILLAR
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