Internet Society Board of Trustees President & CEO's Report

Internet Society Board of Trustees

President & CEO's Report

L. St.Amour

12 - 13 November 2004

BoT Meeting/ Washington, DC

12Nov 2004 BoT 2005 Budget -Nov 04.ppt 2

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.)


2004 Year-end Forecast

12 November 2004



Key Operating Goals 2004 President’s Operating Goals

1. Cash reserves >= 4 mos. Op. Expenses

2. Revenues and Surplus >= Budget

3. With VP’s, build effective Pub Pol Initiative. Priority on WSIS

4. CEO executes effective review mechanism for PIR to ensure bid commitments are met

5. CEO w/ Membership Dir. will update Org. member fundraising program w/focus on effectively involving Trustees in fund-raising

6. Plan/decision for INET 2005 by Sept. ‘04 and participate in min. 4 regional conferences

7. With Mem. Dir. & VP’s implement new Member program and system

8. Support IETF in Admin. Restructuring efforts

All Goals largely on track - although tracks not as smoooth as one might like.


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


2004 P&L Summary through Sept. ‘04

TOTAL - ALL PILLARS SEPTEMBER YEAR TO DATEActual Actual Budget Variance

Platinum revenue (expected in Q4) 50,000$ 150,000$ -$ 150,000$ Organization revenue 68,090 452,812 750,000 (297,188) Individual Member dues 8,675 12,075 39,375 (27,300) .Org revenue (Quarterly installments) 475,000 1,425,000 1,425,000 - All other revenue (51,194) 95,789 197,500 (101,711) Total revenue 550,571$ 2,135,676$ 2,411,875$ (276,199)$

Direct expenses 237,698 1,726,314 2,203,599 477,285 G&A/Governance Allocation 53,691 386,093 463,117 77,024 Total expenses 291,389 2,112,407 2,666,716 554,309

SURPLUS (LOSS) 259,182$ 23,269$ (254,841)$ 278,110$


2004 Year-End Projection2004 Forecast**

Revenue: Standards Education Pub Pol Total w/ add'l .org surplus

Platinum 250,000$ 142,000$ 100,000$ 492,000$ 442,000$ 800,000 100,000 100,000 1,000,000 650,000

52,500 52,500 36,000 145,000 145,000 96,000

900,000 450,000 550,000 1,900,000 2,400,000 150,000 150,000 62,000

5,000 5,000 6,000 2,105,000$ 837,000$ 802,500$ 3,744,500$ 3,692,000$

Expenses:371,337 364,623 458,128 1,194,088 1,119,000 10,000 10,000 10,000

RFC Editor 574,570 574,570 638,000 89,000 89,000 89,000

709,000 709,000 300,000 - - -

100,000 100,000 95,200 52,500 109,400 74,000 235,900 440,000 70,000 42,181 112,181 50,000

1,876,407 616,204 532,128 3,024,739 2,741,200 192,026 188,555 236,908 617,489 520,000

2,068,433 804,759 769,036 3,642,228 3,261,200

36,567$ 32,241$ 33,464$ 102,272$ 430,800$

G&A/GovernanceTotal Expenses

Surplus (Loss)

Ext'l Prog Costs, Prof Svcs.Ext'l Prog Costs-SEINIT & SidaTotal Direct Expenses

IETF & IAB Support, D&O Ins.IETF Restructing ProjectIANA SupportNDSS/INET 04-Exp, Travel/misc.

Contributions & MiscellaneousTotal Revenue

ISOC Salaries & related costsIETF Staff Travel & Misc.

Individual Member (700 @ $75)NDSS 2004 & INET 2004.org Program RevenueSecurity Expert Initiative

Organization Member

Note: Additional 2004 contribution from PIR not yet agreed.


Org. Member Revenue Trends

0

500

1000

1500

2000

2500

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005F/C

Plat. RevOrg. Rev

Traditional Organization revenues

Platinum program introduced in 2000 to pay RFC & past due A/P

Organization Members - Cash In not Accruals

2000 Peak 5 new Gold members,

then 3 bankrupt

<------- Internet Bubble -----><-Dotcom crash->

Historical Runrate


Expenditures by Pillar - 2003Total: $2.3M

Internet Society Program Expenditures 2003

Standards

Education

PolicyStandards

Total: $1,124,000

- RFC Editor- IETF/IAB Discretionary Expenses - ISOC Standards Program support- Org Member support and Fundraising

rds

Policy

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

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

Note: includes allocated G&A


Expenditures by Pillar - 2004 BudgetTotal: $3.6M

Standards

Education

PolicyStandards

Total: $1,124,000

- RFC Editor- IETF/IAB Discretionary Expenses - ISOC Standards Program support- IETF Admin. Support- Org Member support and Fundraising

rds

Policy

Total: $493,000

- Policy and Member Briefings- WSIS/Prepcoms 2004- Chapter and Individual Member projects and systems- Various UN initiatives: - Special Forums,- ISOC Policy Program support

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 Note: includes allocated G&A


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.


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.


ISOC Total Net Asset Trends - 2004

-2000000

-1000000

0

1000000

2000000

3000000

4000000

5000000

1995 1997 1999 2001 2003

RevenuesExpensesNet Assets


ISOC’s Strategic Positioning

12 November 2004



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


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


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.


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 multi-

year strategic operating plan and align it with a thoughtful and purposeful set of activities


“Do” versus “Plan”

Launch or continueprojects because

each one looks like“a good thing for

ISOC to do”

Put everything onhold while we spendsix months gazing

deeply into theISOC navel

Ad-hoc assemblyof loosely-related“good” activities

Strategic planningas an end

in itself

Consistent linkage &alignment of activities(stds, policy, ed/train)

Quick response topresent (and rapidlyevolving) realities

OUR GOAL and BASIS for BUDGET:


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


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


2005 DRAFT BUDGETfor

DISCUSSION

12 - 13 November 2004



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.


2005 - Financial Goals

• Agree financial metrics with PIR, for PIR, to establish multi-year 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


2005 Budget - for DiscussionRevenue: Total

Platinum 500,000$ Organization Member 800,000 Individual Member (700 @ $75) 52,500 NDSS 2005 100,000 .org Surplus Contribution 3,400,000 Security Expert Initiative 220,000 Contributions & Miscellaneous 5,000 Postel Award -

Total Revenue 5,077,500$

Expenses: Standards Education PublicPolicy

ISOC Salaries & related exps. 1,335,401 (2) 442,089 416,525 476,787 IM/Chapter Salaries & related exp 271,921 (2) 271,921 IETF Staff Travel & Misc. 20,000 20,000 RFC Editor 802,000 802,000 IETF Disc. Support 50,000 50,000 IAB Disc. Support 34,000 34,000 Insurance-Directors & Officers 16,000 16,000 Travel, Phone, Mktng & Misc. 90,000 40,000 15,000 35,000 NDSS 2005 (excluding salaries) 65,000 65,000 Programs (see detail) 1,089,000 (1) 469,000 320,000 300,000 "External" Programs - SEINIT 200,000 200,000 Postel Award 25,000 25,000 Total Direct Expenses 3,998,322 1,898,089 1,016,525 1,083,708

G&A/Governance 814,097 (2) 223,915 210,967 379,215 -

Total Expenses 4,812,419 2,122,004 1,227,492 1,462,923 -

Surplus (Loss) 265,081

Notes: 1 - see detail on later page 2 -Total Salary costs = $1.9M w/ G&A of $331K, plus direct salaries from pillars

Cash On hand: $ 511,317


2005 Budget - Governance & G&AGOVERNANCE COSTS 2005 2004

Budget Budget

Legal fees 10,000$ 10,000$ Directors & Officers Insurance 5,000 5,000 Board Meetings, travel & election exps. 50,000 (1) 33,000 Board Telephone calls & committee calls 35,000 15,000 Misc.(shipping, postage, copying etc.) 5,000 7,000

105,000$ 70,000$

G& A COSTS

Insurance and accounting 31,500$ 35,000$ Repairs & Maintenance 24,700 6,500 Travel 6,000 15,000 Depreciation 86,000 75,000 Rent 150,000 150,500 Telephone 25,000 25,000 Materials & Supplies 18,000 10,000 Bank, credit card and payroll fees 16,000 8,700 Outsourcing fees 63,600 20,000 Office expenses including electricity 25,000 10,000 Misc.(shipping, copying, postage,dues & subs., storage, etc.) 12,000 8,000

445,800$ 363,700$ Less: PIR sublease (19,137) (2) (28,710) Less: PIR facilities agreement (13,662) (2) (16,500) Less: Sublease-NET GAIN (34,732) (33,078) Total G&A (Before Salaries) 378,269$ 285,412$

Total Gov and G&A 483,269$ 355,412 Add: G& A/Gov Salaries 330,828 262,077 Total Gov/G&A to be allocated to all Pillars 814,097$ 617,489$

Assumptions:(1) Four board meetings plus $5K for election exps.(2) Assumed four months of rent & common costs for PIR.

12 NOV BoT BoT 2005 Budget -Nov 04.ppt 27

Org. Member Revenue Trends Organization Members - Cash In not Accruals

0

500

1000

1500

2000

2500

1996199719981999200020012002200320042005 F/C2006 F/C2007 F/C2008 F/C

Plat. RevOrg. Rev

Traditional Organization revenues

Platinum program introduced in 2000 to pay RFC & past due A/P

2000 Peak 5 new Gold members,

then 3 bankrupt

Internet Bubble Dot com Crash

Historical Runrate

Economic Recovery


Individual Membership now Increasing w/Associate Membership

0

5000

10000

15000

20000

25000

30000

35000

'92 93 '94 '95 '96 '97 '98 '99 '00 '01 '0204 FC200520062007

14802

618

6,804 5,272

Members

Associate Members


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


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




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 "


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


Work products of SEINIT

• Conceptual issues

• Security architecture

• Implementation of components and Models

• Security assessment platforms

• Adaptation & Integration of Applicatons.

• Validation

• Exploitation & Dissemination

• Training


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


ISOC Organization Phase I Restructuring - May 2004

A. Shroeder Webmaster

Sys. Admin. (may O/S)

T. WeiglerChapter/ IM Admin.

Office Admin. (LSA & LD)

N. SanchezSr. Program Mgr.

Chapter/IM supportProgram support (LSA)

M. KupresCorp. & Institutional Dev. Mgr.

Org. Mem & Conf. support Geneva Office Admin. (LD)

D. McAuleyMembership Director

M. AddisonFinance/Admin. Support

L. DuValDirector of Finance

& Admin80%

M.KuehneSr. Program Manager

Policy SupportTechnical Liaison

P. GodwinSr. Program Manager

Public Relations/CommsEducation Liaison

M. NelsonVP Public Polciy

Volunteer

J, GalvinVP Members & Chapters

Volunteer

L. St.AmourPresident & CEO


ISOC Organization Phase II Restructuring - October 2004












& Admin80%





M. NelsonVP Public Policy

Volunteer

J. GalvinVP Members & Chapters

Volunteer

Policy Mgr.L. Chapin

engaged to help kickstartpolicy & planning effort


Expect further staff re-alignment when Permanent policy hire is in place.


ISOC Organization Phase III Restructuring - January 2005 (?)










Finance Mgr.part-time



& Admin80%






VDP'sVery dedicated volunteers


VDP'sVery dedicated volunteers

Policy Mgr.L. Chapin

engaged to help kickstartpolicy & planning effort


IETF IAD

IAOC

Addition of IETF Admin. Support Personnel


ISOC Organization Phase III Restructuring - Q1/Q2 2005










Finance Mgr.part-time



& Admin80%



Policy ManagerTBH




Volunteer


Volunteer

Education Mgr.Flex Hire


IETF IAD

IAOC


Expenses - Staff AllocationPosition Status G & A Standards * Education * Public * Total

Policy* New Positions

CEO/President - LSA FT 10% 40% 20% 30% 100%Org. Member/GVA Admin. - MK FT 10% 80% 10% 100%Org. Mem - IM & Chapters - DM FT 5% 75% 20% 100%Sr. Finance Director FT 100% 100%IETF Finance Director * PT 50% 50%Accntg. Asst & Admin. support- MA FT 50% 25% 25% 100%Office Mgr/IM & Chapters -TW FT 50% 25% 25% 100%Web/ Sys. Admin. - AS FT 5% 55% 10% 30% 100%Public Policy Mgr. LC/TBH * FT 100% 100%Public Policy & Educ - MK FT 50% 50% 100%Education Director - TBH * FT 100% 100%Comms & Educ. Mgr. - PG FT 50% 50% 100%IM/Chapter & Project Mgr- NS FT 100% 100%

Full-time Equivalents (FTE's) 2.8 3.0 2.4 4.3 12.5

* IMPORTANT TO NOTE:

Standards Pillar includes Org. member support and FundraisingEducation Pillar includes conference support and SeINITPublic Policy Pillar includes Individual Members and Chapters support

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


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


IASA TimetableNote: 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


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


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


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


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.


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


IETF Secretariat Expenses - 2005Salaries & Fringe (Labor & Fringe) 180,000 300,000 480,000

Other Direct Expenses

IETF Meeting Expenses 976,000 976,000Food & Beverage 715,000 715,000Audio/Visual 60,000 60,000Room Rental 170,000 170,000Terminal Room 25,000 25,000Other Meeting Exp 6,000 6,000

Travel 75,000 75,000Materials & Supplies 10,700 10,700Printing & Publications (Proceedings & Printing) 12,000 12,000Professional Services (Temp Help, Legal, Consultants) 9,000 9,000Telelconferences & LD Charges 42,000 42,000Miscellaneous 3,000 4,000 7,000Bank/Credit Card (Fees) 67,934 2,500 70,434Equipment Rental 2500 2,500Total Other Direct Expenses 1,046,934 157,700 1,204,634

Total Direct Expense 1,226,934 457,700 1,684,634Indirect Expense 75% 137,250 299,025 436,275Gross Total Expenses 1,364,184 756,725 2,120,909


RFC Editor StatsRFC’s Published & Average Pages

0

50

100

150

200

250

300

1968197119741977198019831986198919921995199820012004 FC

RFC's Publ.Average Pgs.

Source: RFC Editor


RFC Editor StatsTotal Pages Published

0100020003000400050006000700080009000

1968197119741977198019831986198919921995199820012004 FC

Total Pgs.

Source: RFC Editor


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.


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


ISOC 2005 External Program Funding(above & beyond staff activities/projects)

Standards Education Public TotalPolicy

Program Funds Available 469,000 320,000 300,000 1,089,000

NOTE: 1 Possible Programs to be funded

AfNOG 50,000 AfriNIC 50,000 (A)

80,000 100,000

Member Incentive Programs 20,000 50,000 (A)

IETF Admin 469,000 ISOC Assistance Corps 200,000 (A) ($200K - 1M)Policy Portal 60,000 (A)SaNOG, Cedia, Bhutan 40,000 SilkNOG 100,000 (A)Sm. Grant Program in LA & AP 100,000 100,000 WALC (LA NTW) 30,000 W/shop Portal/NSRC 100,000

TOTAL 469,000$ 520,000$ 560,000$ 1,549,000$

ccTLD W/S * 3Member/Chapter Projects

ccTLD Toolkit


Total Expenditures by Pillar - 2005

ISOC 2005 Program Expenditures - Total $4,812,419

Standards

Education

PolicyStandards

Total: 2,122,004

- RFC Editor- IETF/IAB Discretionary Expenses - ISOC Standards Program support- IETF Admin. Support- Org Member support and Fundraising

rds

Policy

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

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

Note: includes allocated G&A


ISOC Total Net Asset Trends 2005 Budget

-2000000

-1000000

0

1000000

2000000

3000000

4000000

5000000

6000000

1995 1997 1999 2001 2003 2005



2005 - 2008 Projections (1)Revenue: 2005 2006 2007 2008

Platinum 500,000$ 600,000$ 725,000$ 870,000$ Organization Member 800,000 960,000 1,150,000 1,375,000 Individual member (@ $75) 52,500 75,000 100,000 125,000 NDSS 2005 100,000 100,000 100,000 100,000 .org Surplus Contribution 3400000 2,004,000 4,226,000 4,591,000 Security Expert Initiative 220,000 Contributions & Miscellaneous 5,000 5,000 5,000 5,000 Postel Award - - - -

Total Revenue 5,077,500$ 3,744,000$ 6,306,000$ 7,066,000$

Expenses:ISOC Salaries & related costs 1,607,322 1,900,000 +1 2,300,000 2,415,000 IETF Staff Travel & Misc. 20,000 20,000 20,000 20,000 RFC Editor 802,000 900,000 1,000,000 1,050,000 IETF Support 50,000 50,000 50,000 50,000 IAB Support 34,000 34,000 34,000 34,000 Insurance-Directors & Officers 16,000 18,000 20,000 20,000 IETF Restructing Project 469,000 500,000 500,000 500,000 Travel, Phone, Mktng & Misc. 90,000 90,000 200,000 200,000 NDSS 2005 (excluding salaries) 65,000 65,000 65,000 65,000 Program Costs 620,000 600,000 700,000 1,000,000 "External" Program - SEINIT 200,000 - - - Funding of Postel Award 25,000 25,000 25,000 25,000 Total Direct Expenses 3,998,322 4,202,000 4,914,000 5,379,000

G&A/Governance 814,097 936,212 1,076,643 1,238,140

Total Expenses 4,812,419 5,138,212 5,990,643 6,617,140

Surplus (Loss) 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


2005 - 2008 P&L Projections (2) Revenue: 2005 2006 2007 2008

Platinum 500,000$ 600,000$ 725,000$ 870,000$ Organization Member 800,000 960,000 1,150,000 1,375,000 Individual member (@ $75) 52,500 75,000 100,000 125,000 NDSS 2005 100,000 100,000 100,000 100,000 .org Surplus Contribution 3,400,000 3,800,000 3,800,000 3,800,000 Security Expert Initiative 220,000 Contributions & Miscellaneous 5,000 5,000 5,000 5,000 Postel Award - - - -

Total Revenue 5,077,500$ 5,540,000$ 5,880,000$ 6,275,000$

Expenses:ISOC Salaries & related costs 1,607,322 1,900,000 +1 2,200,000 2,300,000 IETF Staff Travel & Misc. 20,000 20,000 20,000 20,000 RFC Editor 802,000 880,000 968,000 1,064,800 IETF Support 50,000 50,000 50,000 50,000 IAB Support 34,000 34,000 34,000 34,000 Insurance-Directors & Officers 16,000 18,000 20,000 20,000 IETF Restructing Project 469,000 500,000 500,000 500,000 Travel, Phone, Mktng & Misc. 90,000 90,000 100,000 200,000 NDSS 2005 (excluding salaries) 65,000 65,000 65,000 65,000 Program Costs 620,000 600,000 600,000 600,000 "External" Program - SEINIT 200,000 - - - Funding of Postel Award 25,000 25,000 25,000 25,000 Total Direct Expenses 3,998,322 4,182,000 4,582,000 4,878,800

G&A/Governance 814,097 936,212 1,076,643 1,238,140

Total Expenses 4,812,419 5,118,212 5,658,643 6,116,940

Surplus (Loss) 265,081 421,788 221,357 1 158,060

Note: .ORG Contributions not yet agreed


ISOC Total Net Asset Trends - 2005 Based on scenario 2

-2000000

-1000000

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

1995 1997 1999 2001 2003 2005 2007


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)



• Coordination Services (45 FTE’s)– Database (15)

– RIPE Meetings (5)

– Reporting (7)

– Technical Projects & Support (15)

– External Relations & RIR Coordination (3)



• Information Services (10 FTE’s)– Routing Information Service

– Active Measurement Service

– Statistics Collection Service

• New Projects (6 FTE’s)

• Total headcount: 90


RIPE NCC - Revenues & Expenses

• Total revenues: 10.8 M EUR• Total expense budget: 10. 3 M EUR


RIPE NCC - Expenses 2004

Activity Area Budget in M EUR %

Member Services 5.8 57

Coordination Services

3.0 29

Information Services

1.5 14

Total 10.3


RIPE NCC - Expenditure 2004 (M EUR)

Personnel 5.7

Operating Costs 2.4

RIPE Mtg’s & Training Courses

0.9

Depreciation 0.9

Total 9.9

For Comparison Only

ICANN

Proposed Budget 2004 - 2005

pulled from web site


ICANN - Revenues & ExpendituresFor Comparison

• Total Revenue: 16.0 M USD• Total Expenditures: 15.8 M USD


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) 13.6


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) 2.2

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


Board Strategic Retreat - Sept. 2004Strategic Directions

• IETF Support• Education & Policy Pillars• Members

– Chapter

– Organizational

– Individual?


Board Strategic Retreat - Sept. 2004IETF+Standards Support

• To the extent they let us help• RFC Editor status?• $$$$$


Board Strategic Retreat - Sept. 2004Interaction 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


Board Strategic Retreat - Sept. 2004Interaction 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


Board Strategic Retreat - Sept. 2004Support 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


Board Strategic Retreat - Sept. 2004Support 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

Documents

Internet Society Board of Trustees President & CEO's Report