IAOC Report to the ISOC Board

Jonne Soininen, ChairRay Pelletier, IAD

28 March 2009San Francisco, California, USA

®

2008 IETF Operating Results

Nearly 50% of the IETF’s Revenues arederived from Registration Fees, while 14% are met by contributions from Meeting and NOC sponsors secured by ISOC.

ISOC provides nearly one-third of the annual funding necessary for IETF Operations.

Less than half of IETF expenses are for Meetings. Net Meeting proceeds are applied to other IETF responsibilities.

Day-to-day Secretariat expenses (including IT), RFC Services, Tools and Administrative costs total over $2.5 million annually (plus immense volunteer time) with no direct source of funding.

2008 Revenues: $4.3mCommissions

6%

Sponsorships14%

Reg Fees49%

ISOC31%

2008 Expenses: $4.3mTrust

1%Tools2%

Administrative11%

Meetings41%

Non-MeetingSecretariat

27%

RFC Services18%

2008 Financial Results(Preliminary Unaudited) ®

Meeting Registrations fell 6% under the 2008 Budget– IETF 71 & 72 were very close to attendance targets– IETF 73 was $115,000 (180 attendees) under the registration target

Host and NOC Sponsorships reached record level - $616,700– ISOC secured all budgeted sponsorships for IETF 71 - 73

Receipts from Hotel Commissions were greater than expected– As a net result, IETF Revenues (Registrations, Sponsorships, Commissions) were only 2% below the

2008 Budget

Expenses in most categories were under the 2008 Budget– RFC & Copy Edit Services were 9% under budget (more efficient use of copy edit services)– Variable Meeting Costs were 10% under budget (lower A/V, Travel, volume-related F&B)– IETF/IASA/IAB Support costs were 25% under budget (conscious efforts to reduce telephone, travel,

meeting costs; plus lower NomCom costs)– IETF Trust expenses were $20K over budget (Legal costs: policy development, advice and

trademarks)

2008 Detailed Financial Results(Preliminary Unaudited)

Actual Budget VarianceREVENUE:

Meeting Registrations 2,084,235$ 2,222,500$ (138,265)$ Meeting Sponsorships 256,700 245,000 11,700 NOC Sponsorships 360,000 360,000 - Hotel Commissions & Other Revenue 242,497 180,000 62,497 Total IETF/IASA Revenues 2,943,432 3,007,500 (64,068)

EXPENSES:RFC Editor & Copy-Edit Services 670,500 737,800 67,301 IETF Secretariat & Meeting (AMS) 1,460,166 1,500,000 39,834 Other Secretariat Expenses 3,341 31,000 27,659 Variable Managed Meeting Costs 825,689 919,600 93,911 Secretariat Transition Expenses 93,323 75,000 (18,323) General Meeting Contingency - 50,000 50,000 Short Term Contracts - 25,000 25,000 Tools 5,937 10,000 4,063 IASA, IETF, IAB Support 362,121 482,416 120,296 Other Meeting Expenses 608,122 596,633 (11,489) IETF Trust Expenses 43,479 23,500 (19,979) General and Administrative 97,810 95,000 (2,810) Capital Expenditures (Tools Development) 98,638 100,000 1,362

Total IETF/IASA Expenses 4,269,125 4,645,949 376,824

ISOC Contribution to IETF Activities 1,325,693$ 1,638,449$ 312,755$

For the Year Ending December 31, 2008

IETF/IASAStatement of Activities

For the Year Ending December 31, 2008

2008 Meeting Results

Actual Budget VarianceMEETING REVENUE:

IETF Registrations 2,084,235$ 2,222,500$ (138,265)$ ISOC's IETF Sponsorships 256,700 245,000 11,700 NOC Sponsorships 360,000 360,000 - Hotel Commissions 226,890 180,000 46,890 Other Revenue 15,607 - 15,607 Total IETF/IASA Revenues 2,943,431 3,007,500 (64,069)

MEETING EXPENSES:IETF Secretariat: Meeting (AMS) 321,237 330,000 8,763 Variable Managed Meeting Costs 825,689 919,600 93,911 General Meeting Contingency - 50,000 50,000 Other Meeting Expenses (incl NOC Hosting exp) 608,122 596,633 (11,489)

Total Meeting Expenses 1,755,047 1,896,233 141,185

NET MEETING RESULTS 1,188,384$ 1,111,267$ 77,117$

IETF/IASAStatement of Meeting Activities

For the Fourth Quarter Ending December 31, 2008

For the Year Ending 12/31/2008

Net Meeting results, in conjunction with ISOC Contributions, are applied to fund day-to-day Secretariat Expenses (including IT), RFC Services, Administrative support, Tools development, and Trust expenses.

2009 ISOC Support Initiative

Status Update on ISOC’s 2009 IETF Support Initiative (In addition to ISOC’s direct contribution and sponsorship efforts)

1. $150k to stimulate attendance at IETF meetings - IAOC reduced fees for IETF 74 from budgeted $675 to $635, the fee in 2008

Represents a $45,000 reduction in Registration Fees (at budgeted attendance)

- IAOC to evaluate budget prior to each meeting before setting fee Would represent another $90,000 reduction in Registration Fees

2. $350k as a budget safety net in the event of attendance shortfalls

- Currently Held in Reserve

2009 Contingency Plans

In light of the global economic uncertainties, the IAOC has developed a financial contingency plan which will be evaluated throughout the course of the year.

In December 2008, the ISOC Board of Trustees advised the IAOC of its concern and commitment to stimulate attendance at IETF meetings, and to provide a safety net for 2009 in the event of attendance shortfalls.

The IAOC has used this ISOC commitment to hold the registration fee for IETF74 without an increase (registration fees for future meetings will be reviewed during the year), and to investigate other opportunities to increase participation in future IETF meetings.

Budget: Registration FeesIETF applied $46.9k of ISOC $150k stimulus funds in San Francisco to reduce the registration fee to $635. The $350k ISOC Safety Net for attendance anomalies may not be impacted. Awaiting hotel commission report.

Valley Effect: 273 paid attendees from California, which is 142 more than Minneapolis and 129 more than Philadelphia.

IAOC voted to approve a $635 Fee for Stockholm.

Budget: Registration Fees