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IETF 2022 Draft Budget
- Jay DaleyIETF Executive Director
1 Nov 2021
The IETF Administration LLC has prepared its draft budget for 2022 and now seeks community feedback.
The IETF LLC 2022 Draft Budget contains the following sections:
- Budget
- Meetings budget
- Chart of accounts
Key assumptions
- Internet Society contribution as per our agreement
- IETF 113 will go ahead with 650 onsite participants, IETF 114 and IETF 115 will go ahead as in-person meetings with 1000 participants. All meetings will have a fee for remote participants.
- All strategic retreats etc will go ahead.
- Air travel costs will be at 50% above pre-COVID levels.
- The RFC Editor Future Program will conclude as expected and an RCSE will be appointed
- Investments increase 5% over the year (up from 4% in 2021)
- 4% inflation reflected in staff and some admin costs (up from 2% in 2021)
Summary
| 2022 Draft Budget | 2021 Budget | Variance | |
|---|---|---|---|
| Non-Meeting Revenue | $ 8,574,098 | $7,489,940 | $ 1,084,158 |
| Meeting Revenue | $ 3,926,815 | $ 3,104,437 | $ 822,378 |
| TOTAL REVENUE | $ 12,500,913 | $ 10,594,377 | $ 1,906,536 |
| Operating Expenses | $ 5,618,552 | $ 5,642,035 | $ (23,483) |
| Meeting Expenses | $ 3,351,387 | $ 3,347,792 | $ 3,595 |
| TOTAL EXPENSES | $ 8,969,939 | $ 8,989,827 | $ (19,888) |
| NET INCOME | $ 3,530,973 | $ 1,604,550 | $ 1,926,423 |
| Capital Expenditure | $ 561,714 | $ 585,000 | $ 424,500 |
| NET INCOME AFTER CAPITAL | $ 2,969,260 | $ 1,019,550 | $ 1,949,710 |
Key changes from 2021
Budget changes
- General
- Inflation has been applied at a rate of 4% while it currently stands in the US at 5.3%, in anticipation of Federal Reserve action to reduce it.
- Fundraising
- The budget for fundraising for external funds into the endowment has been raised from $0.5m to $1m in line with the plan even though that may be premature.
- The budget for ISOC funds into the endowment is based on the 2021 budget of us raising $0.5m in 2021. Current donations are running approximately $250,000 lower than that and if that situation does not change then the budget for next year will need to be reduced by $500,000 to account for the loss of 2:1 match funds.
- Meetings:
- Assumes all three IETF meetings will go ahead in-person with reduced number
- Assumes fee for remote participation paid by 250 people per meeting
- Childcare costs only for last two meetings in 2022
- Estimating much higher travel costs throughout 2022.
- Administration:
- Budget for Director of Development increased to provide for a CRM system and small events for potential donors..
- Inflation has been applied to a number of items
- Community leadership
- New budget for EMODIR Support, covering the development, production and distribution of materials (documentation, videos, and other collateral). This is more than offset by a reduction in the Comms budget.
- The IETF Trust budget has increased.
- RSE and RPC
- The costs for the new RSCE have been added including recruitment costs.
- Tools:
- New contract for a project manager to plan a complete rewrite of RPC tools.
- New DBA services contract.
- Old contracts now removed.
- More accurate cost for new developers.
- Net increase in cost for Tools across both Opex and Capex of approximately $340,000.
Presentation changes
- Major changes to capex presentation
- Split capex between Tools and Other
- Included a negative capitalisation adjustment line under tools opex to forecast the tools expense that is capitalised at the end of the year. This also allows for a reader to correctly estimate total tools expenditure.
- Tools tab simplified to show capex/opex split for each line.
- Split LLC staff costs between Administration and Tools to correctly show tools spend.
- Travel page tidied up to reduce hard coded values
- New EMODIR Support line under Community Leadership
Reserves
Our reserves are invested with one fund manager in four separate portfolios, each with a different risk and investment profile. These portfolios and their value as of 31 August 2021 are
- Continuity and Operations $5,366.968
- Board Designated Reserve $10,852,743
- Restricted Endowment $3,876,686
- Business Opportunities $563,453
We are planning to produce full reserve forecasts for our next budget (FY 2023) following the introduction of a new financial system in 2022 that will significantly improve our operational forecasting and therefore the level of any surplus that may be safely added to reserves while leaving sufficient cash at hand.
Community feedback
Community feedback on the budget is welcome and should be made either directly to the IETF Executive Director at exec-director@ietf.org, who can also answer any questions, or to the administration discussion list admin-discuss@ietf.org. Please provide any feedback before November 29th 2021.