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ISOC’s 2001 Budget Review

December 9, 2000San Diego, CaliforniaMichael E. ConnISOC Treasurer

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2001 Budget Highlights Great Job by Lynn, Don and Bob Vaughn Divided Budget into Four Pillars of Operation

Standards Membership Education & Training Public Policy

Based on a lean ISOC HQ operation No CEO salary for last 10 months Not replacing 3 headcount for the year

Would result in a $328K net gain

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ISOC’s 2001 Revenue PlanStandards Rev. Members

hRev. Edu &

TrainRev. Pub Policy Rev. Total

Platinum $550 Platinum $100 $ 650

Org Mem $ 203

Org Mem $675 Org Mem $270 Org Mem $203 $1,350

IETF Contrib $ 10

Indiv Memb

$220 NDSS $130 $ 360

Gen Contrib

$ 35 INET 2001 $290 $ 325

Thinkquest $ 95 $ 95

INET Future $ 75 $ 75

Educ/WS $ 25 $ 25

Total $763 Total $930 Total $885 Total $303 $2,880

($Thousands)

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ISOC’s 2001 Expense PlanStandar

dsExp

.Members

hExp

.Edu & Train Exp

.Pub

PolicyExp

.Total

RFC Editor

$500

Ind/Ch Adm

$250

NDSS $100

Staff Activ

$ 60

$ 910

IETF Trav $ 60

$Org Sup $305

INET 2001 $100

$ 465

IAB/IESG $ 20

Future Conf $ 65

$ 85

Staff/Platin

$ 20

Thinkquest $ 90

$ 110

Publication

$ 50

Publication

$ 50

Publication $ 50

Publication

$ 50

$ 200

Website $ 12

Website $ 36

Website $ 36

Website $ 36

$ 120

Promotions $ 30

Promotions

$ 50

$ 80

Educ/Worksh

$ 62

$ 62

Standards

$662

Membersh

$641

Edu & Train $533

Pub Policy

$196

$2,032

G&A $ 58

G&A $231

G&A $160

G&A $ 71

$ 520

Standards

$720

Membersh

$872

Edu & Train $693

Pub Policy

$267

$2,552

($Thousands)

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ISOC’s 2001 Net SurplusStandard

sMembers

hEdu & Train

Pub Policy

Total

Revenues $763

Revenues $930

Revenues $885

Revenues

$303

$2,880

Expenses $720

Expenses $872

Expenses $693

Expenses

$267

$2,552

Surplus $ 42

Surplus $ 58 Surplus $192

Surplus $ 36 $ 328

($Thousands)

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ISOC Revenue Growth from Organizational Membership

$0$200,000$400,000$600,000$800,000

$1,000,000$1,200,000$1,400,000$1,600,000$1,800,000$2,000,000

1995

1996

1997

1998

1999

2000

2001

ActualProjected

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Total Organization Member Revenues

$0$200,000$400,000$600,000$800,000

$1,000,000$1,200,000$1,400,000$1,600,000$1,800,000$2,000,000

1999 2000 2001

PlatinumOrg Mem

$1.3M $1.54M

$.285M

$1.35M

$.650M

$1.825M

$2.000M

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Org Membership Revenues Distribution

StandardsMembershipEdu&TraingPublic Policy

Total Regular Org Revenues = $1,350K

$203K (15%) $203K (15%)

$675K (50%)

$270K (20%)

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Individual Membership Revenues

Assumes no growth from 2000 1999$219K 2000$220K 2001$220K

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ISOC’s 2001 Change in Expenses Expected Reduction in Expenses $405K

2000 Total Expenses $3.0M 2001 Total Expenses $2.6M

Major Decreases in Expenses $685K Reduce 3HC + CEO 10mth $410K Reduce Conference Expense $275K

Major Increase in Expenses $280K Increase RFC Editor Support by $150K Increase Standards Support by $ 30K Platinum Program Cost $ 20K New Org Member Resource $ 80K

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ISOC’s 2001 G&A Expenses G&A Moved to Pillar Specific Cost $400K

Ex: ISOC Membership FL HC in “Indiv/Chap Admin” G&A Remaining $520K

Fully Loaded G&A Salaries $142K Legal, Insurance, Auditing Fees $ 80K BoT Support $ 85K Depreciation $ 50K Material & Supplies $ 40K Professional Services $ 50K Miscellaneous G&A $ 73K

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G&A Expense Distribution

StandardsMembershipEdu & TrainPublic Policy

Total G&A Expenses = $520K

$58K (11%)

$231K (44%)$160K (31%)

$71K (14%)

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INET Conference Net Profit INET 1999 ISOC took financial risk

Resulting in a loss of approx. $265K INET 2000 ISOC took Profit Sharing

Resulting in a profit of approx. $200K INET 2001 ISOC takes Revenue Sharing

Expected Result approx. $190K $240K ISOC part of Revenue Sharing $ 50K ISOC Reimburse for expenses $100K ISOC expected INET expenses

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ISOC Total Revenues, Expenses and Net Assets Trends

-2000000

-1000000

0

1000000

2000000

3000000

4000000

5000000

1995 1996 1997 1998 1999 2000 2001

RevenuesExpensesNet Assets

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ISOC Key Balance Sheet Indicators

$0$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000

Dec-

99

Feb-0

0

Apr-

00

Jun-0

0

Aug-0

0

Oct

-00

Dec-

00

Total DeferredRevenue

First Cash Goal

Accounts Payable

Actual Cash

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ISOC Cash Shortage Indicator

($1,400,000)

($1,200,000)

($1,000,000)

($800,000)

($600,000)

($400,000)

($200,000)

$0

Final Goal

First Goal

Cash ShortageIndicator

Cash Shortage Indicator = Cash & Cash Eq. - Accounts Payable - Deferred Revenue

Jan

-00

Mar

-00

May

-00

July

-00

Sep

t-00

Nov

-00

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Conclusions ISOC poised for good financial year

Increased total Org Membership revenues Lean headcount and operational cost Expect $190K Profit from INET 2001 Expect Net Income of $328K

ISOC recovering from major 1999 loss May take 2 to 3 more years

Help Recruit Platinum and Org Members