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ISOC Document
Title: Treasurer's report
Author: F. Greisen
Date: 6 Jun 1995
Body: Board of Trustees
Document: 95-008
Revision: basic
Supersedes: -
Status: 
Maintainer: F. Greisen
Access: unrestricted
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Treasurer's report

This documents is a short review of ISOC's financial situation and its 
financial procedures. In particular, the audited accounts for 1994 are 
reviewed as a basis for a board resolution to accept the accounts. 

1. 1994 audited accounts

The ISOC accounts for 1994 were audited by Gelman, Rosenberg & Freedman and
are shown elsewhere in the briefing book.

The accounts show a total revenues of 985 K$, slightly down from 1005 in
1993.  However, in 1993 several organizational members signed up as
founding members with a contribution that was twice the normal contribution
and on the average the organizational membership income has developed
satisfactorily from 317 k in 1992, 860 k in 1993 to 669 k in 1994. 

Expenses were 673 k$, down from 927 k in 1993. The major difference is due 
to the fact that ISOC contributed 225 k$ to the IETF secretariat in 1993 
and this was not continued in 1994.

The reserves, or funds balance, have gone up to 570 k$ from 257 k in 1994.
It should be noted that all known ISOC debts are shown in the balance
statement but the ISOC bylaws have a clause by which the charter members
may re-claim funds contributed or advanced to establish and further the
activities of the Society.  As one of the charter members, Educom has
stated they have no such claims, and informal statements from TERENA also
indicate that TERENA has no such claims. The only recorded donation
is the 97,803 $ donated services from CNRI shown in the ISOC financial 
statements for 1992. 

2. Remarks from the auditors

The accompanying letter from the auditors is appended. It is noted that 
some of the recommendations from last year's audit had not been 
implemented in the secretariat by the end of 1994:

- time sheets are not being completed by all staff and approved by the 
executive director. This should be done.

- expense reports are not always using the standard reports, but the
secretariat states that in nearly all cases similar information has been
provided in writing. It is recommended to secure the use of the standard
report by an ongoing effort or to modify the reporting mechanism to be more
practical. 

- cancelled checks were not returned to ISOC from one of the banks. The 
secretariat states that this bank is no more used for check transactions.

In addition, the secretariat should act on the auditor's new
recommendations and report back to the board on progress.

3. Further procedural recommendations from the treasurer

For some years I have tried to get a more consistent presentation of the 
accounts which would make it easier to compare with previous years and 
with the budget. In addition, I've tried to get quarterly or monthly 
financial updates including the expected outcome for major budget items.

It is urgent that such periodic reports become available to allow the board
and the executive committee to decide whether ISOC can afford new
activities during the year. 

After the installation of a dedicated financial system last fall staff has
indicated that the new reports will be implemented urgently. The first
reports should be available at the Hononulu meeting. 

4. Report from the audit committee

The audit committee consisting of Bob Kahn, Mike Roberts and Frode Greisen 
shares the conclusions above. In addition, the committe plans to meet with 
the auditors later this year and to give a recommendation to the board of 
who should be contracted as auditors for 1995.

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