IAOC Report to the ISOC Board Jonne Soininen, Chair Ray Pelletier, IAD 28 March 2009 San Francisco, California, USA ®

2008 IETF Operating Results Nearly 50% of the IETF’s Revenues are derived from Registration Fees, while 14% are met by contributions from Meeting and NOC sponsors secured by ISOC. ISOC provides nearly one-third of the annual funding necessary for IETF Operations. Less than half of IETF expenses are for Meetings. Net Meeting proceeds are applied to other IETF responsibilities. Day-to-day Secretariat expenses (including IT), RFC Services, Tools and Administrative costs total over $2.5 million annually (plus immense volunteer time) with no direct source of funding.

2008 Financial Results (Preliminary Unaudited) ® Meeting Registrations fell 6% under the 2008 Budget – IETF 71 & 72 were very close to attendance targets – IETF 73 was $115,000 (180 attendees) under the registration target Host and NOC Sponsorships reached record level - $616,700 – ISOC secured all budgeted sponsorships for IETF Receipts from Hotel Commissions were greater than expected – As a net result, IETF Revenues (Registrations, Sponsorships, Commissions) were only 2% below the 2008 Budget Expenses in most categories were under the 2008 Budget – RFC & Copy Edit Services were 9% under budget (more efficient use of copy edit services) – Variable Meeting Costs were 10% under budget (lower A/V, Travel, volume-related F&B) – IETF/IASA/IAB Support costs were 25% under budget (conscious efforts to reduce telephone, travel, meeting costs; plus lower NomCom costs) – IETF Trust expenses were $20K over budget (Legal costs: policy development, advice and trademarks)

2008 Detailed Financial Results (Preliminary Unaudited)

2008 Meeting Results Net Meeting results, in conjunction with ISOC Contributions, are applied to fund day-to-day Secretariat Expenses (including IT), RFC Services, Administrative support, Tools development, and Trust expenses.

2009 ISOC Support Initiative Status Update on ISOC’s 2009 IETF Support Initiative (In addition to ISOC’s direct contribution and sponsorship efforts) 1. $150k to stimulate attendance at IETF meetings - IAOC reduced fees for IETF 74 from budgeted $675 to $635, the fee in 2008  Represents a $45,000 reduction in Registration Fees (at budgeted attendance) - IAOC to evaluate budget prior to each meeting before setting fee  Would represent another $90,000 reduction in Registration Fees 2. $350k as a budget safety net in the event of attendance shortfalls - Currently Held in Reserve

2009 Contingency Plans In light of the global economic uncertainties, the IAOC has developed a financial contingency plan which will be evaluated throughout the course of the year. In December 2008, the ISOC Board of Trustees advised the IAOC of its concern and commitment to stimulate attendance at IETF meetings, and to provide a safety net for 2009 in the event of attendance shortfalls. The IAOC has used this ISOC commitment to hold the registration fee for IETF74 without an increase (registration fees for future meetings will be reviewed during the year), and to investigate other opportunities to increase participation in future IETF meetings.

Budget: Registration Fees IETF applied $46.9k of ISOC $150k stimulus funds in San Francisco to reduce the registration fee to $635. The $350k ISOC Safety Net for attendance anomalies may not be impacted. Awaiting hotel commission report. Valley Effect: 273 paid attendees from California, which is 142 more than Minneapolis and 129 more than Philadelphia. IAOC voted to approve a $635 Fee for Stockholm.

Budget: Registration Fees