INTERNET SOCIETY

ACCOUNTING POLICIES


1.  All fixed assets which are acquired and have a cost equal to or 
greater than $1000 shall be capitalized.  Assets with a cost of less 
than $1000 shall be expensed.

2.  Depreciation of fixed assets will be computed using the straight-
line method over the estimated useful lives of the respective assets 
according to Internal Revenue Service guidelines.

3.  Organization costs shall be capitalized and amortized over a 60 
month period using the straight-line method.

4.  Bank reconciliations shall be prepared for all bank accounts on a
monthly basis and submitted to the President for review.

5.  In the absence of a full-time business manager, the ISOC accountant
shall hold all checks and be personally involved in all transactions 
which involve the expenditure of funds from the ISOC bank accounts.

6.  At least two parties shall be involved in all transactions which 
involve the expenditure of funds from the bank accounts.  In particular, 
and to the extent possible, the requestor of a disbursement should not 
be the one to sign the check.

7.  All checks for $10,000 or more shall be signed by two authorized 
signers on the bank account.

8.  All expenditures shall be properly vouchered.

9.  Every effort shall be made to maintain funds at financial 
institutions within the FDIC protection limits.

10. ISOC shall pay invoices by check, taking advantage of any discounts 
for early and/or prompt payment and shall avoid long-term obligations 
whenever possible.

11. ISOC shall develop and document reasonable travel policies for all 
ISOC travel (including employees, officers, trustees, contractors, 
consultants, etc.).  At a minimum, employee travel plans shall be 
submitted and approved by the President or Director of Conferences 
before expenses are incurred.  After travel has occurred, expense 
reports shall be prepared by each traveler and reviewed by the 
accountant for accuracy, documentation, etc.  Then, any outstanding 
amounts due the traveler can be reimbursed subject to final approval by 
the President or Conference Director.  Travel by the President, which is 
not sponsored by and funded by an outside organization, shall be 
approved in advance by the Chairman of the Board, via e-mail, if 
necessary.

12. The ISOC accountant shall provide monthly financial up-dates to the
Board of Trustees (or at least the President, Chairman of the Board, 
Treasurer, and Audit Committee) including at a minimum (1)the then 
current income statement compared with the comparable year-to-date 
income statement for the prior year; (2) the then current balance sheet 
compared with the comparable balance sheet for the prior year; (3) a 
budget comparison showing year-to-date income statement compared with 
budgeted amounts for the year and expected amounts by year end.

13. Purchase requisitions shall be submitted for approval and approved
before funds are committed for non-recurring expenditures.  Some
expenditures of a regularly recurring nature are considered as approved 
by being maintained on a list of regular recurring expenses.  Examples 
would be rent, UUNET line charges, telephone, monthly maintenance 
contracts for equipment, regular additions to the postage meter, etc.  
These regularly recurring expenses would be brought to the President's  
attention by the accountant at the time of check-signing.

14. In the interests of expediency and cost savings, the office manager 
may charge the purchase of supplies at a discount office supplier 
without getting prior approval.  Final approval will be made by the 
President when the charged amount is paid.