Transcript Internet Society Board of Trustees Revenue Report

Internet Society
Board of Trustees
FINANCIAL REPORT
July 12 - 13, 2003
Vienna, Austria
Agenda
• 2003 Financial Report
• May 2003 Financial Statements
• 2003 Year End Forecast
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ISOC Total Revenues, Expenses and
Net Asset Trends - Good Progress
5000000
4000000
3000000
2000000
Revenues
Expe nses
Net Assets
1000000
0
-1000000
-2000000
1995 1996 1997 1998 1999 2000 2001 2002 2003
Bud
Source: Mike Conn’s Treasurer Report
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Balance Sheet Summary as of May 2003
• Cash & Cash equivalents totaled $73K at month end
(unrestricted cash avail. for operations was approx. 2 weeks)
• .ORG endowment held by ISOC for PIR ($4.2M) and is held
in a restricted account
• Accounts payable = $237K consists mainly of RFC Editor
invoices. $130K from Q1 invoice (received in Q2) and
remaining is an accrual as we’re invoiced quarterly. Expect
to come current end July/early August.
• Fund Balance - Unrestricted remains negative (-$294K), but
this has improved significantly over the past 2 years with a
64% improvement
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P&L Summary as of May 2003
• P&L surplus was -$114K ($93K behind budget)
• Revenues:
– Traditional org. revs. behind budget by $252K largely as result of
front end loading of revenues and the combination of accruing
revenues in a period of aggressive budgeted growth
– Org. revenue decline somewhat offset by Program contributions
– Platinum revenue not budgeted until Q3/Q4 & expected to be ahead
of budget by $50K - $100K
• Expenses:
– Under budget by $85K, largely due to the time required to finalize
agreements between ISOC and PIR
• Year-end forecast = expect to meet budgeted surplus but
increasing organizational revenue is critical to this success
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2003 Year End Forecast
• Revenues
– Organizations: challenging target, today’s running rate =
$0.8M vs.budget of $1.3M. Reminder - at a P&L level this
means we need to bring in approx. $1.5M in new org.
member revenues before year end, unless Platinum
– Platinum revenue: expect to meet or exceed budget
– Program revenues expected to offset any organizational
member shortfall and will have significant added benefit of
increasing ISOC’s visibility, thereby aiding future org.
member recruitment efforts
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2003 Year End Forecast (cont’d)
• Expenses
– Non .org Expenses are on track (in fact are under
budget), but .org expenses will be higher given higher
level of surplus avail. for programs - however they will
also be net positive
– Revenue recognition tied to expenses
– ISOC’s PIR governance - related expenses to be
recouped
• Cost savings budget of $126K on track (and better
than original target of $100K)
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2003 Year End Forecast (cont’d)
• Summary
– Budget continues to be very aggressive given economic
and world conditions, therefore actively positioning
.org surplus/programs to better and more broadly
position ISOC & PIR for the future.
– Fully expect to meet budgeted surplus
– Working to further diversify our revenue stream: Seinit
(thanks to Latif Ladid ), US Cybersecurity & EU
security efforts, etc.
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2003 Budget vs. Forecast & May Actuals
K$
REVENUES
Plat Rev (1)
Org Rev (2)
IM/Chapter Rev.
PIR Programs
Total Rev (incl. Conf/Other)
EXPENSES
IM/Chapter Exp.
Programs (PIR)
Tot. Direct
G&A
Total Exp
NET SURPLUS
2003
Bud
250
15
422
2,072
60
420
1407
467
1,874
198
EOY F/C
July BoT
2003
Variance
May Act. to Budget
350
1,300
10
1,000
2,485
1,000*
3
221
628
60
1,000
1,810
470
2,280
16
221
513
229
742
4
0
(120)
34
(85)
205
(114)
93
289
-
(252)
(3)
45
(178)
Notes:
1 - Platinum revenue all budgeted in Q3 & Q4
2 - This is a worse case -- we can do better, and will actively work with BoT
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Going forward
• Board support/commitment
– Suggest I contact each board member individually to see how they
can support fundraising, how staff can help, etc.
– Goal is additional $50K min. per BoT. Success here would mean
another $750,000 and would make an ENORMOUS difference in
operations.
• Continue relentless focus on Costs and Revenues
• Identify and pursue new creative revenue streams and roles
for ISOC consistent with our values & purposes
• Success of .org initiative shows potential for such
opportunities
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