Bert, Rob,
please find below comments on "reserves". Thanks again for all your efforts.
Section 2.2
7. The IASA shall
work with ISOC to (?)
establish a target for a reserve fund to cover normal operating expenses and meeting expenses in accordance with prudent planning, and ISOC shall work with the IASA to build up and maintain the
s/reserve./reserve as part of ISOC's overall reserve strategy and provisioning./
The changes above are to reflect the last known agreement (at least from ISOC's perspective it was the last known :-) . Some additional comments below.
5.6 Operating Reserve
As an initial guideline and in normal operating circumstances, the IASA should have an operating reserve for its activities sufficient to cover 6-months of non-meeting operational expenses, plus twice the recent average for meeting contract guarantees. However, the IASA shall establish a target for a reserve fund to cover normal operating expenses and meeting expenses in accordance with prudent planning. Rather than having the IASA attempt to build that reserve in its separate accounts,
I don't believe this sentence reads properly given we're following a divisional accounting model (more appropriately called a cost center model?) as the accounts will not be held physically separate. Perhaps delete that part and begin the sentence with: "the IASA looks to ISOC to build ...." ?
the IASA looks to ISOC to build and provide that operational reserve, through whatever mechanisms ISOC deems appropriate: line of credit, financial reserves, meeting cancellation insurance, and so forth. Such reserves do not appear instantaneously; the goal is to reach this level of reserves within 3 years after the creation of the IASA. Such funds shall be held in reserve for use by IASA for use in the event of IETF meeting cancellation or other unexpected fiscal emergencies. These reserves shall only be spent on IETF support functions.
The penultimate sentence above seems to be redundant, and in any case the last two sentences are not in agreement with the earlier ones that say it may be held as a line of credit, etc. nor with the notion that the IASA would not be holding a separate reserve (2.2 - 7 seems to imply the same thing?). Finally, access to these reserves would expect to follow normal IAOC and ISOC approval processes for any budget overruns and would not automatically be available for use by IASA in the event of meeting cancellations or other emergencies. Maybe replace the last two sentences with some variation of "Access to these reserves would expect to follow normal IAOC and ISOC approval processes for any budget overruns."
Best regards, Lynn
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