RE: Issue: #748: Section 5.4 - Quarterly deposits inappropriate

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Thanks Margaret for your reaction.
It is clear we have a quite different opinion.
I guess we need quite a few more people to speak up in order for 
Harald to be able to try and see consensus.

Bert

> -----Original Message-----
> From: Margaret Wasserman [mailto:margaret@xxxxxxxxxxxxxx]
> Sent: Wednesday, December 22, 2004 14:52
> To: Wijnen, Bert (Bert); sob@xxxxxxxxxxx; brc@xxxxxxxxxxxxxx;
> harald@xxxxxxxxxxxxx
> Cc: ietf@xxxxxxxx
> Subject: RE: Issue: #748: Section 5.4 - Quarterly deposits 
> inappropriate
> 
> 
> 
> Hi Bert,
> 
> At 11:13 PM +0100 12/21/04, Wijnen, Bert (Bert) wrote:
> >May be I need to explain my (personal) thinking.
> 
> This is good, because your personal thinking does not match my 
> personal thinking and perhaps that is why we have been having trouble 
> coming to wording that seems right to both of us.
> 
> >In my view, just as an example, if we have this budget:
> >
> >Revenues:                            expenses  $5M
> >- meeting fees           $ 2M
> >- earmarked donations:   $ 2M
> >- ISOC budget            $ 1M
> >
> >and at the end of the year it turnes out that we adhered to 
> th $5M spending
> >and that the meeting fees and earmarked donations are say $ 
> 5M, then I
> >would hope we can set aside $1 M for reserve funds for 
> possible future
> >shortfalls and/or disasters.
> >I'd hope that ISOC would still be willing to allocate $ 1M for IETF
> >(at least untill we have our defined reserve fund established).
> 
> With the same budget numbers, I would, personally, think 
> about it like this:
> 
> ISOC has agreed to cover a $5M budget.  The IASA is only anticipating 
> $2M in meeting revenue.  This means that ISOC needs to raise funds 
> (in one form or another) to cover $3M worth of expenses.
> 
> If meeting fees and/or designated donations do cover the full $5M, 
> the budget is covered.  If these revenue sources do not cover the 
> full $5M, ISOC will need to cover the remaining expenses from 
> non-IASA-specific funds.
> 
> I think that you are making a mistake when you consider the 
> "earmarked donations" and the "ISOC budget" to be two separate 
> revenue streams.  ISOC will have fund raising programs, and _all_ of 
> the donations that ISOC collects from those programs are ISOC 
> revenue.  Some of that revenue may be earmarked to specific projects 
> (IASA is only one of many projects that people may choose to fund) 
> and/or collected via project-specific fund raising efforts, but all 
> of this revenue and all related expenses are included in the ISOC 
> budget.
> 
> I don't know whether or not IETF meeting fees will be included in the 
> ISOC budget.  That will depend on whether we view meeting fees and 
> expenses as IASA budget items, or whether the meetings are run in 
> such a way that only the surplus from the meetings shows up on the 
> ISOC/IASA books.
> 
> >In fact I would rather see a budget:
> >
> >revenues:                             expenses
> >- meeting fees           $ 2M         allocate to reserve fund $.5M
> >- earmarked donations:   $ 2M         normal expenses $4.5M
> >- ISOC budget            $ 1M
> >
> >And then if meeting fees turn out to generate an extra 1M 
> without extra
> >cost, then put the extra 1M in the reserve fund so we get to 
> our defined
> >"reserve" faster.
> 
> You still seem to be thinking that there is a goal to create a 
> separate IASA reserve fund.  I don't think that makes sense.  The 
> overall ISOC organization will be more flexible, and more resilient 
> with a single, larger reserve that can cover the full operation 
> (including IASA) than it will be if we hold separate "ISOC" and 
> "IASA" reserves.
> 
> If the meeting fees and designated donations exceed the IASA budget 
> on an ongoing basis, we will build-up some IASA-specific funds that 
> could be used as a first line reserve, but I don't think that should 
> be our goal, so I don't understand why we would want a budget that 
> tried to achieve that.
> 
> Margaret
> 

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