An Investigation on a new financial structure for TERENA GA(02)011 A Stylianou S Jaume

 General Principles  A new financial model  Core Tasks  Core Organisation  TERENAs current model  Analysis based on TERENAs current model  Points for discussion  Allocate time-cost to activities Contents

General Principles TERENA Mission promote and participate in the development of a high quality international information and telecommunications infrastructure for the benefit of Research and Education” How (financially) to achieve the TERENA mission Membership fees External funding of activities (members or other funding agencies) How (technically) to achieve the TERENA mission Require a core organization as this is dictated by the core tasks of TERENA Expand as required and according to what TERENA GA decides

A new Financial Model 1.Fixed membership fee to cover core tasks (including projects and activities of general interest), and adjusted periodically for inflation 2.members pay for other technical projects or other activities which are of lesser interest but still of interest to a section of the community. TERENA acts as the catalyst and initial coordinator. 3.Increase the contribution of external funding 4.Ensure the long term stability and financial viability of TERENA

Main Core tasks Providing technical/administrative support to task-forces and technical projects in areas of common interest to the membership. Organising workshops on (new) topical technical subjects of common interest to the membership. Providing an environment for fostering new initiatives of the European research networking community. Organising the annual TERENA Networking Conference. Providing (technical and managerial) advice and assistance to TERENA member organisations, and promoting knowledge transfer. Promoting members’ interests by representing the common interests and opinions of the membership in contacts with relevant organisations. Providing a TERENA website with up-to-date information.

Other Core tasks Providing support to the TERENA GA, TEC, TAC and TTC. Organising an annual seminar for the TERENA General Assembly. Organising at least one workshop per year directed at the training of people from less advanced networking organisations. Offering meeting facilities in the TERENA offices to the members Anything else ???

Core Organization The organisation requires the appropriate resources to carry out the core tasks. In addition to a building, equipment, furniture etc, a secretariat is required consisting of 1 Secretary-General, 1 Chief Technical Officer, 3 Project Development Officers, 0.5 IT Support Officer, 1 Chief Administrative Officer, 1PR & Conference Officer, a part-time (0.6) Financial Administrator 1 Secretary. This organisation is able to provide annually (at least) technical / admin support to 5 task-forces or similar groups, project-officer support to 3 projects, organise 2 topical workshops and 1 training workshop

TERENA’s current model (Based on 2002 figures) 2002 Budget CoreAdditi onal Total EXPENDITURE INCOME964* * Membership fees only

Analysis based on TERENAs current model Dynamic rather than Static approach: In a static model, current fees do not cover core costs. In a dynamic model they subsidize the core costs-activities TERENA success brings in extra funds that help offset core costs; Fees must provide critical mass in order to have success in attracting other funds. 2 categories of activities in place Funded as TERENA projects by TERENA funds and – or external funds Kick started by TERENA and funded externally (either by members or other funding agencies)

Points for discussion Increase share of voluntary member contributions for projects? Charge part of TERENA overheads to member-funded projects in future? Charge registration fees for TERENA workshops to members? How can we get more member-funded projects? Which additional mechanisms needed for that? New ways in which members can suggest TERENA activities?

Allocate time-cost to activities TF XTF YACT P Proposal AConference

Cost Centre based on Activity – Activity XY 2000 Expenditure Income PDO for proposal preparation 90% Terena finding 0.1 CTO verification 5% XYZ NREN Accounting services 5% PQR Company SG final confirmation Secretarial services 500 overheads 2001 Expenditure Income PDO for technical support 70% Terena Funding 0.1 CTO management15% XYZ NREN Secretarial services15% PQR NREN 4000 equipment 2000 overheads 1500 Travelling and subsistence Would an Activity cost centre approach help? 2002 Expenditure Income PDO for technical support 90% EU ……..…..

Cost Centre based on Resource – Resource PDO A 2000 PDO A time-Cost allocation 10% Proposal preparation for PRABC 25% Technical Support for TFSSS 50% Technical Support for Activity X 10% Training, meetings, general admin overhead 2000Funded by 50% Terena funds 25% EU funding for TFSSS 25% XYZ NREN and TTT NREN for activity X Would an Resource cost centre approach help?

What is the next step?

Many thanks to the secretariat for helping us prepare this (especially Bert and Karel)