Transcript Internet Society Board of Trustees Revenue Report

Internet Society
Board of Trustees
President & CEO's Report
L. St.Amour
12 - 13 November 2004
BoT Meeting/ Washington, DC
Agenda
•
•
•
•
•
•
2004 Forecast Review
ISOC’s Strategic Positioning
2005 Draft Budget for Discussion
IETF Administrative Restructuring Budget Request
2005 - 2008 Projections
Strategic Retreat Output - Sept. 2004 (for ref.)
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
2
Internet Society
Board of Trustees
2004 Year-end Forecast
12 November 2004
BoT Meeting/ Washington, DC
Key Operating Goals
2004 President’s Operating Goals
1.
2.
3.
4.
5.
6.
7.
8.
Cash reserves >= 4 mos. Op. Expenses
Revenues and Surplus >= Budget
With VP’s, build effective Pub Pol Initiative. Priority on WSIS
CEO executes effective review mechanism for PIR to ensure bid
commitments are met
CEO w/ Membership Dir. will update Org. member fundraising program
w/focus on effectively involving Trustees in fund-raising
Plan/decision for INET 2005 by Sept. ‘04 and participate in min. 4
regional conferences
With Mem. Dir. & VP’s implement new Member program and system
Support IETF in Admin. Restructuring efforts
All Goals largely on track - although tracks not as smoooth as one might like.
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
4
2004 Budget Summary
• Investment year for IETF, significant increase in
funding expected over 2003 + $862K
• Year to begin re-building education base and
increase policy efforts.
• Upgrade many parts of ISOC’s infra-structure in
order to support new activities/projects
• Modest surplus budgeted ($102K) but net asset
and cash position expected to be healthy at end
2004
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
5
2004 P&L Summary through Sept. ‘04
TOTAL - ALL PILLARS
Platinum rev enue (expected in Q4)
Organization rev enue
Indiv idual Member dues
.Org rev enue (Quarterly installments)
All other rev enue
Total revenue
SEPTEMBER
Actual
$
$
Direct expenses
G&A/Gov ernance Allocation
Total expenses
SURPLUS (LOSS)
12Nov 2004
50,000
68,090
8,675
475,000
(51,194)
550,571
Actual
$
150,000 $
452,812
12,075
1,425,000
95,789
$ 2,135,676 $
237,698
53,691
291,389
$
259,182
YEAR TO DATE
Budget
1,726,314
386,093
2,112,407
$
23,269 $
BoT 2005 Budget -Nov 04.ppt
Variance
$
750,000
39,375
1,425,000
197,500
2,411,875 $
150,000
(297,188)
(27,300)
(101,711)
(276,199)
2,203,599
463,117
2,666,716
477,285
77,024
554,309
(254,841) $
278,110
6
2004 Year-End Projection
Revenue:
Platinum
Organization Member
Indiv idual Member (700 @ $75)
NDSS 2004 & INET 2004
.org Program Rev enue
Security Expert Initiativ e
Contributions & Miscellaneous
Total Revenue
Standards
$
250,000
800,000
900,000
150,000
5,000
$ 2,105,000
Education
$
$
36,567
$
145,000
450,000
$
Expenses:
ISOC Salaries & related costs
371,337
IETF Staf f Trav el & Misc.
10,000
RFC Editor
574,570
IETF & IAB Support, D&O Ins.
89,000
IETF Restructing Project
709,000
IANA Support
NDSS/INET 04-Exp, Trav el/misc.
Ext'l Prog Costs, Prof Sv cs.
52,500
Ext'l Prog Costs-SEINIT & Sida
70,000
Total Direct Expenses
1,876,407
G&A/Governance
192,026
Total Expenses
2,068,433
Surplus (Loss)
142,000
100,000
Pub Pol
837,000
100,000
100,000
52,500
Total
$
550,000
$
364,623
802,500
$
458,128
492,000
1,000,000
52,500
145,000
1,900,000
150,000
5,000
3,744,500
2004 Forecast**
w/ add'l .org surplus
$
$
1,194,088
10,000
574,570
89,000
709,000
1,119,000
10,000
638,000
89,000
300,000
95,200
440,000
50,000
2,741,200
520,000
3,261,200
100,000
109,400
42,181
616,204
188,555
804,759
$
32,241
100,000
235,900
112,181
3,024,739
617,489
3,642,228
74,000
532,128
236,908
769,036
$
33,464
$
102,272
442,000
650,000
36,000
96,000
2,400,000
62,000
6,000
3,692,000
$
430,800
Note: Additional 2004 contribution from PIR not yet agreed.
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
7
Org. Member Revenue Trends
Organization Members - Cash In not Accruals
2500
Platinum program introduced in 2000
to pay RFC & past due A/P
2000
1500
Historical Runrate
1000
2000 Peak
5 new Gold members,
then 3 bankrupt
500
Plat. Rev
Org. Rev
Traditional Organization revenues
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
F/C
<------- Internet Bubble -----> <-Dotcom crash->
12Nov 2004
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8
Expenditures by Pillar - 2003
Total: $2.3M
Policy
Inte rne t Socie ty Program Expe nditure s 2003
Total: $493,000
- Policy and Member Briefings
- WSIS/Prepcoms 2003
- Chapter and Individual
Member projects
and systems
- Various UN initiatives:
- Special Forums,
- ITU Telecom 2003, etc.
- ISOC Policy Program
support
Polic y
Standards
Total: $1,124,000
Standards
Education
Total: $702,000
-
AfNOG
ISOC Workshop Portal
NDSS
Latin American Workshop (WALC)
Pan-Asia Small Grants Program
Pan-Americas Small Grants Program
ISOC Education Program Support
12Nov 2004
Educ ation
- RFC Editor
- IETF/IAB Discretionary
Expenses
- ISOC Standards
Program support
- Org Member support
and Fundraising
rds
Note: includes allocated G&A
BoT 2005 Budget -Nov 04.ppt
9
Expenditures by Pillar - 2004 Budget
Total: $3.6M
Policy
Tot al: $493,000
- P olic y and M e mber B rie fings
- WS I S /P repc oms 2 0 0 4
- C hapter and I ndividual
M embe r projec ts
and s y s tems
- V arious U N initiativ es :
- S pec ial F orums ,
- I S O C P olic y P rogra m
s upport
Policy
Standards
Tot al: $1,124,000
Standards
Education
Tot al: $702,000
-
Education
A fN O G
I S O C Works hop P ortal
N DSS
L a tin A meric a n Works hop (WA L C )
P an- A s ia S mall G ra nts P rogra m
P an- A meric a s S mall G rants P rogra m
I S O C E duc a tion P rogra m S upport
12Nov 2004
- R F C E ditor
- I E T F /I A B D is c re tiona ry
E xpe ns e s
- I S O C S tandards
P rogra m s upport
- I E T F A dmin. S upport
- O rg M e mber s upport
and F undra is ing
rds
Note: includes allocated G&A
BoT 2005 Budget -Nov 04.ppt
10
2004 P&L Summary - Revenues
• P&L Budgeted surplus was $102K, forecast = $388K due to expected
increase in .org program funding of $500K.
• Org Member & Ind. Member revenues were behind budget by $366K Largely due to weak economic conditions, & reduced staff effort available
for fundraising(addressed through addition of new membership Director,
David McAuley)
• Platinum revenues behind budget by $50K. Sida Platinum fund bal. from
‘03 is expected to be used for ‘04 projects.
• SEINIT- behind budget by $88K- project got late start, therefore, not able
to recognize as much income in ‘04 as projected (but expenses were also
delayed). Activities will be rolled into 2005 as will funding.
12Nov 2004
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2004 P&L Summary - Expenses
•
•
•
•
Total Expenses = ($381K), largely due to delay in use of the IETF
restructuring funds although RFC Editor funding increase of $66K offset this
somewhat. Careful management of G&A and postponing new hires also
contributed.
G&A expenses = ($97K) largely due to PIR extending their stay in ISOC
offices $55K and decreased depreciation of $42K, due to later installation of
new membership/finance system.
Pub. Pol. Travel & Prof. Services .-increased $51K due to increased policy
initiatives including WSIS & WGIG. Promotions exceeded budget by $34K
largely in support of ISOC’s first Annual Report.
IM/Chapter support exceeded budget by $147K due to implementation of new
membership/finance system & increased efforts to support Chapters, however
this is just a redirection of staff costs and not a net increase.
12Nov 2004
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ISOC Total Net Asset Trends - 2004
5000000
4000000
3000000
2000000
Revenues
Expe nses
Net Assets
1000000
0
-1000000
-2000000
1995
12Nov 2004
1997
1999
2001
BoT 2005 Budget -Nov 04.ppt
2003
13
Internet Society
Board of Trustees
ISOC’s Strategic Positioning
12 November 2004
BoT Meeting/ Washington, DC
Intro
• The Trustees met in Reston Virginia for several days in
September 2004, to develop consensus on ISOC’s strategic
priorities going forward
• Those priorities were the starting point given to the CEO,
to develop a budget proposal for ISOC (for 2005)
assuming:
– ISOC will continue as a home of standards process
– ISOC will continue to promote the Internet
• Priorities were collected together to create list of
operational objectives
• Note: Presentation from Retreat included in back-up section
12Nov 2004
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2005 Operational Directives for Consideration
• Develop diverse, stable, sustainable revenue streams
– Meet or exceed Org. member revenue budget
– Stronger Value proposition for Org. members, IM’s and chapters
• Support IETF’s Administrative Restructuring efforts
• Strengthen Public Policy efforts (inc. WSIS, WGIG, etc.)
while developing a long-term strategic context and plan
• Strengthen PIR relationship and our review processes
• Education Strategy - inc. conferences, seminars, etc.
• Strengthen & empower IM/Chapter Model & increase
interaction/involvement between chapters and ISOC on all
matters listed above
• Develop a multi-year Publications Strategy & Plan
• Develop a multi-year Communications Strategy & Plan
• Support changes to BoT Governance model
12Nov 2004
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Opportunities are Upon Us….
• There are NOW too many operational directives to
be managed in an ad-hoc or opportunistic way
(despite fact that very judicious use of these tactics
kept ISOC alive the last few years).
• Must make conscious, informed, forward looking
decisions that build the ISOC of the future.
• And as we’ve seen, with so many areas in play,
and finite resources, competition increases for
those resources.
12Nov 2004
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Principles assumed in Budget Dev’t.
• Guard against laissez-faire decision making given
additional funding available.
• Must have consistent linkage and alignment of
operating plans with our strategic direction, and
our priorities.
• All activities should be leveraged fully
• Overall ISOC context is important in each funding
decision.
• Clear that now is the right time to re-new a multiyear strategic operating plan and align it with a
thoughtful and purposeful set of activities
12Nov 2004
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18
“Do” versus “Plan”
Launch or continue
projects because
each one looks like
“a good thing for
ISOC to do”
Put everything on
hold while we spend
six months gazing
deeply into the
ISOC navel
Ad-hoc assembly
of loosely-related
“good” activities
Strategic planning
as an end
in itself
OUR GOAL and BASIS for BUDGET:
Consistent linkage &
alignment of activities
(stds, policy, ed/train)
12Nov 2004
Quick response to
present (and rapidly
evolving) realities
BoT 2005 Budget -Nov 04.ppt
19
Strategic Operating Plan Activities
• Collective process in which all of ISOC must be involved
• Lyman Chapin engaged end October; not arriving with a prepared
“here’s what I think you should do” answer
• Scope is all of ISOC—standards, policy, education and training
• Talk with a very broad range of Internet, public policy, civil society,
etc. people
• Distill & discuss with Staff and Board
– Presentations at regular intervals
• Develop strategic operating plan with enough detail to ensure it is
‘implementable’
• Some 2005 budgeted activities will be shaped as plan develops over
the next few months (see “do no harm”)
• 2006 budget process to be driven by completed (and approved)
strategic plan
12Nov 2004
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First, Do No Harm
• ISOC reputation for non-partisan probity is an
extraordinarily valuable (and possibly unique) asset
• It’s also a very fragile asset
• Once lost, the “we’re just doing this for the good of the
Internet” reputation is hard or impossible to recover
• Balance urgency of initiatives (narrow window for ISOC
to establish position or authority) against potential harm to
eventual (but soon!) consistent ISOC operational strategic
plan
12Nov 2004
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21
Internet Society
Board of Trustees
2005 DRAFT BUDGET
for
DISCUSSION
12 - 13 November 2004
BoT Meeting/ Washington, DC
Major Budget Process Notes
• PIR’s expected contributions are included here at a
high level. Note: PIR will not finalize their 2005
budget until early December, so these numbers are
projections only.
• IETF Projections are largely based on 2003 and
2004 operating costs, with assumptions changed
as appropriate. They represent a request from the
IESG and IAB and are expected to be reviewed in
depth once the model is more established - likely
to be Q1 2005.
12Nov 2004
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23
2005 - Financial Goals
• Agree financial metrics with PIR, for PIR, to establish multiyear expectations vs. series of one-off negotiations
• Develop multi-year high level rolling budget
• 2005: Cash on hand forecasted to be approx. 2 - 3 months vs.
goal of 6 months cash on hand given add’l. requirements.
Note: 2006 goal = 6 mos. Cash on hand vs. operating
commitments - Note: this may also be a stretch
• Healthy surplus that will contribute to a more positive cash
and balance sheet position
12Nov 2004
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24
2005 Budget - for Discussion
Revenue:
Total
Platinum
Organization Member
Indiv idual Member (700 @ $75)
NDSS 2005
.org Surplus Contribution
Security Expert Initiativ e
Contributions & Miscellaneous
Postel Award
$
500,000
800,000
52,500
100,000
3,400,000
220,000
5,000
-
Total Revenue
$
5,077,500
Expenses:
Standards
ISOC Salaries & related exps.
IM/Chapter Salaries & related exp
IETF Staf f Trav el & Misc.
RFC Editor
IETF Disc. Support
IAB Disc. Support
Insurance-Directors & Of f icers
Trav el, Phone, Mktng & Misc.
NDSS 2005 (excluding salaries)
Programs (see detail)
"External" Programs - SEINIT
Postel Award
Total Direct Expenses
1,335,401
271,921
20,000
802,000
50,000
34,000
16,000
90,000
65,000
1,089,000
200,000
25,000
3,998,322
(2)
(2)
G&A/Governance
814,097
4,812,419
265,081
(2)
Total Expenses
Surplus (Loss)
Cash On hand:
442,089
20,000
802,000
50,000
34,000
16,000
40,000
(1)
469,000
Education
Public
Policy
416,525
476,787
271,921
15,000
65,000
320,000
200,000
35,000
300,000
25,000
1,898,089
1,016,525
1,083,708
223,915
210,967
379,215
2,122,004
1,227,492
1,462,923
$ 511,317
Notes: 1 - see detail on later page
2 -Total Salary costs = $1.9M w/ G&A of $331K, plus direct salaries from pillars
12Nov 2004
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2005 Budget - Governance & G&A
GOVERNANCE COSTS
Legal f ees
Directors & Of f icers Insurance
Board Meetings, t rav el & elect ion exps.
Board Telephone calls & com m itt ee calls
Misc.(s hipping, postage, copy ing etc.)
2005
2004
Bud get
Bud get
$
10,000
5,000
50,000 (1)
35,000
5,000
$ 105,000
$
$
$
$
10,000
5,000
33,000
15,000
7,000
70,000
G& A COSTS
Insurance and accounting
Repairs & Maintenance
Trav el
Depreciation
Rent
Telephone
Materials & Supplies
Bank, credit card and pay roll f ees
Outsourcing f ees
Of f ice expenses including electricity
Misc.(s hipping, copy ing, postage,
dues & subs. , st orage, etc.)
Less:
Less:
Less:
Total
PIR sublease
PIR f acilities agreem ent
Sublease-NET GAIN
G&A (Before Salaries)
Total Gov and G&A
Add: G& A/Gov Salaries
Total Gov / G&A t o be allocated to all Pillars
31,500
24,700
6,000
86,000
150,000
25,000
18,000
16,000
63,600
25,000
12,000
$ 445,800
(19, 137) (2)
(13, 662) (2)
(34, 732)
$ 378,269
$ 483,269
330,828
$ 814,097
35,000
6,500
15,000
75,000
150,500
25,000
10,000
8,700
20,000
10,000
$
8,000
363,700
(28, 710)
(16, 500)
(33, 078)
285,412
$
355,412
262,077
617,489
$
Assumptio ns:
(1) F our board m eetings plus $5K f or elect ion exps.
(2) Assum ed f our m onths of rent & com m on costs f or PIR.
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
26
Org. Member Revenue Trends
Organization Members - Cash In not Accruals
2500
2000
Platinum program introduced in 2000
to pay RFC & past due A/P
1500
1000 Historical Runrate
500
2000 Peak
5 new Gold members,
then 3 bankrupt
Traditional Organization revenues
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
20 04
05
20 F/ C
06
20 F/ C
07
20 F/ C
08
F/
C
0
Plat. Rev
Org. Rev
 Internet Bubble
12 NOV BoT
  Dot com Crash  Economic Recovery
27
Individual Membership now Increasing
w/Associate Membership
35000
Members
30000
25000
20000
14802
15000
10000
5000
6,804
Associate
Members
5,272
618
12Nov 2004
93
'9
4
'9
5
'9
6
'9
7
'9
8
'9
9
'0
0
'0
1
'
04 02
FC
20
05
20
06
20
07
'9
2
0
BoT 2005 Budget -Nov 04.ppt
28
Security Expert Initiative (SEINIT)
Overview
 SEINIT, a two year project funded by European
Commission and Swiss Govt.
 Defines new security models and policies to address
the new issues of the pervasive computing world
 Implemented over IPv6 infrastructures
 Results would be inputs for European or Swiss
national initiatives
12Nov 2004
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SEINIT members
•
•
•
•
•
•
•
•
•
•
•
•
•
Alcatel
BT - British Telecom plc
ENST - Ecole Nationale Supérieure des Télécommunications
IABG - IABG mbh
ISOC - Internet Society
KYOS - KYOS SARL
TELS - Telscom A.G.
THC - Thales Communications S.A.
T –NOVA - Deutsche Telekom AG
TRT - Thales-TRT UK Ltd
UCL - University College London
UMU - University of Murcia
WIT - Waterford Institute of Technology
12Nov 2004
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12Nov 2004
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31
12Nov 2004
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32
SEINIT Objectives
• Overall objective
" Ensure a trusted and dependable security framework,
ubiquitous, working across multiple devices,
heterogeneous networks, being organisation
independent (inter-operable) and centred around an
end-user "
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
33
ISOC’s Involvement in SEINIT
• Organize reviews of deliverables
– Involving security and networking experts
• Interface to IETF for standards
• Dissemination & Training
–
–
–
–
NDSS
NTW’s
Chapters
IETF meetings
• Hired Pavan Dhananka part-time as project mgr. for
duration of contract
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
34
Work products of SEINIT
• Conceptual issues
• Security architecture
• Implementation of components and Models
• Security assessment platforms
• Adaptation & Integration of Applicatons.
• Validation
• Exploitation & Dissemination
• Training
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
35
SEINIT expected results
•
•
•
•
New Architecture and Models
New Policies
Guidelines
Proof of SEINIT security concepts
– Platform Implementation
– Integration of Architecture and Applications
• We will organize a more detailed review at future
meeting
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
36
ISOC Organization
Phase I Restructuring - May 2004
L. St.Amour
President & CEO
D. McAuley
Membership Director
L. DuVal
Director of Finance
& Admin
80%
M. Kupres
Corp. & Institutional Dev. Mgr.
Org. Mem & Conf. support
Geneva Office Admin. (LD)
M. Addison
Finance/Admin. Support
M.Kuehne
Sr. Program Manager
Policy Support
Technical Liaison
P. Godwin
Sr. Program Manager
Public Relations/Comms
Education Liaison
M. Nelson
VP Public Polciy
Volunteer
J, Galvin
VP Members & Chapters
Volunteer
N. Sanchez
Sr. Program Mgr.
Chapter/IM support
Program support (LSA)
T. Weigler
Chapter/ IM Admin.
Office Admin. (LSA & LD)
A. Shroeder
Webmaster
Sys. Admin. (may O/S)
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
37
ISOC Organization
Phase II Restructuring - October 2004
L. St.Amour
President & CEO
D. McAuley
Membership Director
L. DuVal
Director of Finance
& Admin
80%
M. Kupres
Corp. & Institutional Dev. Mgr.
Org. Mem & Conf. support
Geneva Office Admin. (LD)
M. Addison
Finance/Admin. Support
N. Sanchez
Sr. Program Mgr.
Chapter/IM support
Program support (LSA)
T. Weigler
Chapter/ IM Admin.
Office Admin. (LSA & LD)
M.Kuehne
Sr. Program Manager
Policy Support
Technical Liaison
P. Godwin
Sr. Program Manager
Public Relations/Comms
Education Liaison
M. Nelson
VP Public Policy
Volunteer
J. Galvin
VP Members & Chapters
Volunteer
Policy Mgr.
L. Chapin
engaged to help kickstart
policy & planning effort
Expect further staff re-alignment when
Permanent policy hire is in place.
A. Shroeder
Webmaster
Sys. Admin. (may O/S)
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
38
ISOC Organization
Phase III Restructuring - January 2005 (?)
L. St.Amour
President & CEO
D. McAuley
Membership Director
L. DuVal
Director of Finance
& Admin
80%
M. Kupres
Corp. & Institutional Dev. Mgr.
Org. Mem & Conf. support
Geneva Office Admin. (LD)
M. Addison
Finance/Admin. Support
N. Sanchez
Sr. Program Mgr.
Chapter/IM support
Program support (LSA)
Finance Mgr.
part-time
M.Kuehne
Sr. Program Manager
Policy Support
Technical Liaison
P. Godwin
Sr. Program Manager
Public Relations/Comms
Education Liaison
IAOC
M. Nelson
VP Public Policy
VDP's
Very dedicated volunteers
J. Galvin
VP Members & Chapters
VDP's
Very dedicated volunteers
Policy Mgr.
L. Chapin
engaged to help kickstart
policy & planning effort
IETF IAD
Addition of IETF Admin. Support Personnel
T. Weigler
Chapter/ IM Admin.
Office Admin. (LSA & LD)
A. Shroeder
Webmaster
Sys. Admin. (may O/S)
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
39
ISOC Organization
Phase III Restructuring - Q1/Q2 2005
L. St.Amour
President & CEO
D. McAuley
Membership Director
L. DuVal
Director of Finance
& Admin
80%
Policy Manager
TBH
P. Godwin
Sr. Program Manager
Public Relations/Comms
Education Liaison
M. Kupres
Corp. & Institutional Dev. Mgr.
Org. Mem & Conf. support
Geneva Office Admin. (LD)
M. Addison
Finance/Admin. Support
M.Kuehne
Sr. Program Manager
Policy Support
Technical Liaison
N. Sanchez
Sr. Program Mgr.
Chapter/IM support
Program support (LSA)
Finance Mgr.
part-time
IAOC
M. Nelson
VP Public Policy
Volunteer
J. Galvin
VP Members & Chapters
Volunteer
Education Mgr.
Flex Hire
IETF IAD
T. Weigler
Chapter/ IM Admin.
Office Admin. (LSA & LD)
A. Shroeder
Webmaster
Sys. Admin. (may O/S)
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
40
Expenses - Staff Allocation
Position
Status
G&A
Standards * Education *
Public *
Policy
Total
* New Positions
CEO/President - LSA
Org. Member/GVA Admin. - MK
Org. Mem - IM & Chapters - DM
Sr. Finance Director
IETF Finance Director
*
Accntg. Asst & Admin. support- MA
Office Mgr/IM & Chapters -TW
Web/ Sys. Admin. - AS
Public Policy Mgr. LC/TBH
*
Public Policy & Educ - MK
Education Director - TBH
*
Comms & Educ. Mgr. - PG
IM/Chapter & Project Mgr- NS
Full-time Equivalents (FTE's)
FT
FT
FT
FT
PT
FT
FT
FT
FT
FT
FT
FT
FT
10%
10%
5%
100%
50%
50%
50%
5%
40%
80%
75%
25%
25%
55%
20%
10%
3.0
50%
100%
100%
100%
100%
100%
50%
100%
100%
100%
100%
100%
100%
100%
100%
4.3
12.5
20%
10%
50%
100%
50%
2.8
30%
2.4
25%
25%
30%
100%
50%
* IMPORTANT TO NOTE:
Standards Pillar includes Org. member support and Fundraising
Education Pillar includes conf erence support and SeINIT
Public Policy Pillar includes Indiv idual Members and Chapters support
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
41
IETF 2005 Budget Requirements
IASA Acronyms
•
IASA -- IETF Administrative Support Activity
– An organized activity that provides administrative support for the IETF, the IAB
and the IESG.
•
IAOC -- IETF Administrative Oversight Committee
– A largely IETF-selected committee that oversees and directs IASA. Accountable to
the IETF community.
– Includes ISOC CEO and an ISOC Board-appointed member
•
IAD -- IETF Administrative Director
– The sole (or first) staff member responsible for carrying out the work of the IASA
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
43
How is IASA structure defined?
• Proposal is to structure IASA as an IETF-controlled
activity under the ISOC legal umbrella
– Currently proposed in an individual Internet-Draft authored by
Wasserman & Daigle -- the IASA BCP:
• http://www.ietf.org/internet-drafts/draft-wasserman-iasa-bcp-01.txt
• IETF consensus call underway to pursue this general
approach
– May be followed by substantial updates to the BCP text to achieve
IETF consensus and IESG & ISOC Board approval
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
44
IASA Timetable
Note: currently under revision
• Gain IETF consensus for basic approach
– Draft-iab-iesg-adminrest-rec, consensus call Nov. 8
• Appoint Transition team to spin-up activities -Nov
• Finalize BCP - mid Nov. (likely to change)
– Community discussion
• Approve BCP - mid Dec. (likely to change)
– Community Discussion & IESG Approval
– ISOC BoT Approval ( plus additional & TBD approvals)
• Seat Initial IAOC Jan/Feb 2005
• Agreements in place - mid 2005
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
45
Structure of the IASA
• IAOC oversees the IASA
• ISOC employee (IAD) responsible for managing
contracts to outsource virtually all administrative
tasks
• Sub-committee of the IAOC (including ISOC
President and IETF chair) selects and reviews IAD
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
46
IASA Finances
• Two funding sources
– IETF meeting fees 60% during start up
– ISOC funds, mostly from organization member fees 40% during start up
• Budget is determined annually (and tuned as necessary) by IAD, IAOC
and ISOC Board
• All financials are completely open and transparent to the IETF
community
– IAOC has responsibility to make this so
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
47
IETF Budget request to ISOC
• Budget request submitted by IETF and IAB Chairs as part
of IASA transition, reviewed by IESG and IAB
• More detailed review expected by IASA Transition team as
soon as consensus is reached and team appointed.
• Further refinement by IAD/IAOC as transition is carried
out and unknowns are answered
• Assumes steady transition/startup, not crisis
• Budget request built on 2003/2004 operating costs as far as
known
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
48
IETF Budget Projections
• 2005 Projection - Meeting Fees
– Meeting revenue = $2,048 (assuming 1300 attendees/meeting at
average $525 reg. fee)
• Total Revenues = $2,048
• Total Expenses = $3,278
• Shortfall/Total Request to ISOC: $1,370
– Traditional expenses:
$ 902
– Transition expenses:
$ 468
– Plus requested 1 trimester of sec’t. reserves be avail. in cash
reserves (approx. $250K) through transition.
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
49
IETF Budget - Expenses
• 2005 Projection - Operational Expenses
–
–
–
–
Meeting costs
$1,364 (detail next page)
Secretariat, tools, IAD 940
Office, fin/legal, ins.
88 (12+60+16)
IETF/IAB discretionary 84
Sub-Total $ 2,476
• RFC Editor
802
• 2005 Projection - Transition Expenses
–
–
Legal & finance
$ 40
Tools devel/updates 100
Sub-Total: $ 140
• Total 2005 expenses: $ 3,418
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
50
IETF Secretariat Expenses - 2005
Salaries & Fringe (Labor & Fringe)
180,000
300,000
480,000
IETF Meeting Expenses
976,000
Food & Bev erage
715,000
Audio/Visual
60,000
Room Rental
170,000
Terminal Room
25,000
Other Meeting Exp
6,000
Travel
Materials & Supplies
Printing & Publications
(Proceedings & Printing)
Professional Services(Temp Help, Legal, Consultants)
Telelconferences & LD Charges
Miscellaneous
3,000
Bank/Credit Card (Fees)
67,934
Equipment Rental
Total Other Direct Expenses
1,046,934
75,000
10,700
12,000
9,000
42,000
4,000
2,500
2500
157,700
976,000
715,000
60,000
170,000
25,000
6,000
75,000
10,700
12,000
9,000
42,000
7,000
70,434
2,500
1,204,634
Total Direct Expense
Indirect Expense
Gross Total Expenses
457,700
299,025
756,725
1,684,634
436,275
2,120,909
Other Direct Expenses
12Nov 2004
75%
1,226,934
137,250
1,364,184
BoT 2005 Budget -Nov 04.ppt
51
RFC Editor Stats
RFC’s Published & Average Pages
300
250
200
RFC's Publ.
Average Pgs.
150
100
50
0
68 971 974 977 980 983 986 989 992 995 998 001 FC
9
1 1 1 1 1 1 1 1 1 1 1 2 04
20
Source: RFC Editor
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
52
RFC Editor Stats
Total Pages Published
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
68 971 974 977 980 983 986 989 992 995 998 001 FC
9
1
1
1
1
1
1
1 1
1
1
1
2 04
20
Source: RFC Editor
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
Total Pgs.
53
RFC Editor Running Rate
• Increase in resources required to meet increasing demand
and decrease backlog.
– input rate has been climbing over the last few years
– to date, RFC Editor has kept budget increases down by deferring
other projects and allowing backlog to grow
• RFC Input rate currently: 28/month
• RFC Output rate projection at “802” plan: 35/month
• At current trajectory, 2005’s “802” plan would still leave
RFC Editor with a backlog at end 2005.
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
54
Potential Variables to IETF’s
Budget Request
• Publication rate
– based on historical data & projections
– shows trends, not absolute per-month targets
• NEWTRK and other IETF pub discussions
– may affect what IETF requests of RFC Editor in future years
• Integration with IASA model
– coordination of IETF publication process between organizations
may change tool and process requirements
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
55
ISOC 2005 External Program Funding
(above & beyond staff activities/projects)
Standards
Program Funds Av ailable
NOTE: 1
469,000
12Nov 2004
Public
Policy
320,000
Total
300,000
1,089,000
Possible Programs to be funded
Af NOG
Af riNIC
ccTLD W/S * 3
Member/Chapter Projects
Member Incentiv e Programs
ccTLD Toolkit
IETF Admin
ISOC Assistance Corps
Policy Portal
SaNOG, Cedia, Bhutan
SilkNOG
Sm. Grant Program in LA & AP
WALC (LA NTW)
W/shop Portal/NSRC
TOTAL
Education
50,000
50,000 (A)
80,000
100,000
20,000
50,000 (A)
469,000
200,000 (A) ($200K - 1M)
60,000 (A)
40,000
100,000 (A)
100,000
30,000
100,000
$
469,000
$
520,000
BoT 2005 Budget -Nov 04.ppt
100,000
$
560,000
$
1,549,000
56
Total Expenditures by Pillar - 2005
Policy
ISOC 2005 Program Expe nditure s - Total $4,812,419
Total: $1,462,923
-
Policy and Member Briefings
Small Grants Program - LA & AP
WSIS/Prepcoms 2005
Chapter and Individual
Member projects
and systems
- Various UN initiatives:
- Special Forums,
- ISOC Policy Program
support
Polic y
Standards
Total: 2,122,004
Standards
Education
Total: 1,227,492
-
AfNOG
Small Grants Program - LA & AP
ISOC Workshop Portal
SaNOG, Cedia, Bhutan
Latin American Workshop (WALC)
NDSS
ISOC Education Program Support
12Nov 2004
Educ ation
- RFC Editor
- IETF/IAB Discretionary
Expenses
- ISOC Standards
Program support
- IETF Admin. Support
- Org Member support
and Fundraising
rds
Note: includes allocated G&A
BoT 2005 Budget -Nov 04.ppt
57
ISOC Total Net Asset Trends
2005 Budget
6000000
5000000
4000000
3000000
Revenues
Expe nses
Net Assets
2000000
1000000
0
-1000000
-2000000
1995
12Nov 2004
1997
1999
2001
2003
BoT 2005 Budget -Nov 04.ppt
2005
58
2005 - 2008 Projections (1)
Revenue:
2005
Platinum
Organization Member
Indiv idual member (@ $75)
NDSS 2005
.org Surplus Contribution
Security Expert Initiativ e
Contributions & Miscellaneous
Postel Award
$
Total Revenue
$ 5,077,500
Expenses:
ISOC Salaries & related costs
IETF Staf f Trav el & Misc.
RFC Editor
IETF Support
IAB Support
Insurance-Directors & Of f icers
IETF Restructing Project
Trav el, Phone, Mktng & Misc.
NDSS 2005 (excluding salaries)
Program Costs
"External" Program - SEINIT
Funding of Postel Award
Total Direct Expenses
G&A/Governance
Total Expenses
Surplus (Loss)
500,000
800,000
52,500
100,000
3400000
220,000
5,000
-
1,607,322
20,000
802,000
50,000
34,000
16,000
469,000
90,000
65,000
620,000
200,000
25,000
3,998,322
2006
$
600,000
960,000
75,000
100,000
2,004,000
2007
$
5,000
$ 3,744,000
1,900,000 +1
20,000
900,000
50,000
34,000
18,000
500,000
90,000
65,000
600,000
25,000
4,202,000
725,000
1,150,000
100,000
100,000
4,226,000
2008
$
870,000
1,375,000
125,000
100,000
4,591,000
5,000
5,000
$
6,306,000
$
7,066,000
2,300,000
20,000
1,000,000
50,000
34,000
20,000
500,000
200,000
65,000
700,000
25,000
4,914,000
2,415,000
20,000
1,050,000
50,000
34,000
20,000
500,000
200,000
65,000
1,000,000
25,000
5,379,000
814,097
936,212
1,076,643
1,238,140
4,812,419
5,138,212
5,990,643
6,617,140
265,081
-1,394,212
315,357
448,860
Note: Assumes surplus from .ORG per PIR’s Nov. 3, 2004 projections - but not yet agreed with PIR
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
59
2005 - 2008 P&L Projections (2)
Revenue:
2005
Platinum
Organization Member
Indiv idual member (@ $75)
NDSS 2005
.org Surplus Contribution
Security Expert Initiativ e
Contributions & Miscellaneous
Postel Award
$
Total Revenue
$ 5,077,500
Expenses:
ISOC Salaries & related costs
IETF Staf f Trav el & Misc.
RFC Editor
IETF Support
IAB Support
Insurance-Directors & Of f icers
IETF Restructing Project
Trav el, Phone, Mktng & Misc.
NDSS 2005 (excluding salaries)
Program Costs
"External" Program - SEINIT
Funding of Postel Award
Total Direct Expenses
G&A/Governance
Total Expenses
Surplus (Loss)
500,000
800,000
52,500
100,000
3,400,000
220,000
5,000
-
1,607,322
20,000
802,000
50,000
34,000
16,000
469,000
90,000
65,000
620,000
200,000
25,000
3,998,322
2006
$
600,000
960,000
75,000
100,000
3,800,000
2007
$
5,000
$ 5,540,000
725,000
1,150,000
100,000
100,000
3,800,000
2008
$
870,000
1,375,000
125,000
100,000
3,800,000
5,000
5,000
$
1,900,000 +1
20,000
880,000
50,000
34,000
18,000
500,000
90,000
65,000
600,000
25,000
4,182,000
5,880,000
$
6,275,000
2,200,000
20,000
968,000
50,000
34,000
20,000
500,000
100,000
65,000
600,000
25,000
4,582,000
2,300,000
20,000
1,064,800
50,000
34,000
20,000
500,000
200,000
65,000
600,000
25,000
4,878,800
814,097
936,212
1,076,643
1,238,140
4,812,419
5,118,212
5,658,643
6,116,940
265,081
421,788
221,357 1
158,060
Note: .ORG Contributions not yet agreed
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
60
ISOC Total Net Asset Trends - 2005
Based on scenario 2
7000000
6000000
5000000
4000000
3000000
Revenues
Expe nses
Net Assets
2000000
1000000
0
-1000000
-2000000
1995
12Nov 2004
1997
1999
2001
2003
2005
BoT 2005 Budget -Nov 04.ppt
2007
61
For Comparison Only
RIPE NCC
Activities & Budget 2004
pulled from web site
RIPE NCC - Activity Areas (1)
• Membership Services (29 FTE’s)
– Registration Services (20)
• IP & ASN allocations
– Member Training Courses (6)
– Member Helpdesk (3)
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
63
RIPE NCC - Activity Areas (2)
• Coordination Services (45 FTE’s)
–
–
–
–
–
Database (15)
RIPE Meetings (5)
Reporting (7)
Technical Projects & Support (15)
External Relations & RIR Coordination (3)
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
64
RIPE NCC - Activity Areas (3)
• Information Services (10 FTE’s)
– Routing Information Service
– Active Measurement Service
– Statistics Collection Service
• New Projects (6 FTE’s)
• Total headcount: 90
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
65
RIPE NCC - Revenues & Expenses
• Total revenues: 10.8 M EUR
• Total expense budget: 10. 3 M EUR
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
66
RIPE NCC - Expenses 2004
Activity Area
12Nov 2004
Budget in M EUR
%
Member Services
5.8
57
Coordination
Services
3.0
29
Information
Services
1.5
14
Total
10.3
BoT 2005 Budget -Nov 04.ppt
67
RIPE NCC - Expenditure 2004 (M EUR)
12Nov 2004
Personnel
5.7
Operating Costs
2.4
RIPE Mtg’s & Training
Courses
0.9
Depreciation
0.9
Total
9.9
BoT 2005 Budget -Nov 04.ppt
68
For Comparison Only
ICANN
Proposed Budget 2004 - 2005
pulled from web site
ICANN - Revenues & Expenditures
For Comparison
• Total Revenue: 16.0 M USD
• Total Expenditures: 15.8 M USD
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
70
ICANN Base Expenditures (M USD)
Full-Time Equivalents (FTE’s)
59
Personnel
5.7
Professional & Technical Services
3.0
Board Mtg & other travel
2.4
Capital Expenditures
1.0
Administrative & Systems
1.5
Sub-Total (1)
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
13.6
71
ICANN - Other Expenditures (M USD)
NomCom
0.2
At-Large Activities
0
IDN Activities
0.08
Outreach Program
0.2
Technical Infrastructure
0.4
Communications
0.07
Contingency
1.3
Sub-Total (2)
12Nov 2004
2.2
BoT 2005 Budget -Nov 04.ppt
72
For Reference: Board Strategic Retreat
Output as captured at meeting
September 28 - 29, 2004
Context
• The Trustees met in Reston Virginia for several days in
September 2004, to develop consensus on ISOC’s strategic
priorities going forward
• Those priorities were the starting point given to Lynn
St.Amour, to develop a budget proposal for ISOC (for
2005) assuming:
– ISOC will continue as a home of standards process
– ISOC will continue to promote the Internet
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
74
Board Strategic Retreat - Sept. 2004
Strategic Directions
• IETF Support
• Education & Policy Pillars
• Members
– Chapter
– Organizational
– Individual?
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
75
Board Strategic Retreat - Sept. 2004
IETF+Standards Support
• To the extent they let us help
• RFC Editor status?
• $$$$$
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
76
Board Strategic Retreat - Sept. 2004
Interaction with Chapters
–
•
–
–
–
–
–
Listen to issues from their perspective
Social networking
Understand internet issues from their perspective
Help them to understand ISOC Mission/Agenda
Collaborate with & provide services to chapters
Foster cooperation between chapters
Mobilize them to action
–
–
–
–
General Education
Policy Education
Pilot projects
Regional conferences
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
77
Board Strategic Retreat - Sept. 2004
Interaction with organizational members
1. Listen to issues from their perspective
2. Understand internet issues from their
perspective
3. Help them to understand ISOC
Mission/Agenda
4. Help them accomplish their projects
5. Give them projects to participate in
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
78
Board Strategic Retreat - Sept. 2004
Support for education of Technical folks
• SANOG/AFNOG/WALC/CITI/etc
• Chapters as educational outlets
• Prepare new educational model
– Regional workshops
– Webcast/Conference calls
– Harvesting IETF expertise/wisdom
• Summary of RFCs?
– Harvest *NOG expertise/wisdom
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
79
Board Strategic Retreat - Sept. 2004
Support for education of policy makers
• Lobbying/Advocacy
– Positions
• Web information, documentation, courses
– Briefings
• Polls/Queries to chapters/individual members for data
development
• Access to expertise
– ISOC Assistance Corps
• Conferences
– Regional workshops?
– Attending WSIS and other conferences
12Nov 2004
BoT 2005 Budget -Nov 04.ppt
80