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2020 Draft Budget Narrative
11 Nov 2019
The IETF Administration LLC has drafted the 2020 Budget under the guidance of its first permanent board. Careful consideration has been provided to each budget request as well as the needs of the Community as a whole.
Highlights under Non-Meeting Revenue include: ISOC’s $5 million contribution, a $75k donation from a generous donor, and Interest Income from the IETF’s LLC’s reserve accounts. The anticipated Total Revenue, including Meeting Registrations and Sponsorships totals $9,276,413. Total Expenses including Meetings are $9,114,624 leaving a Net Income (after Tools Capital Expenditures) at $1,289.
The 2020 draft budget includes 2019 budget and variance columns for comparison. The following factors were considered in its preparation:
- The 2019 Budget Actuals to date;
- Input from contract holders, vendors, and volunteers who contribute expenses;
- Meeting contracts for IETF 107, IETF 108, and IETF 109
2020 Projected Revenues
Projections were based off of past paid registration performance for IETF 102 & IETF 105 in Montreal, IETF 104 in Prague, and IETF 103 in Bangkok.
The sponsorship revenue targets for 2020 remain conservative until the LLC has hired a sponsorship fundraiser and defined the funding strategy. We currently have hosts identified for two meetings and anticipate securing a host for Bangkok in November:
- IETF107: Huawei
- IETF108: Ericsson
- IETF109: TBA
Expenses are based on details from hotel contracts as well as other contracted vendor increases. The following expenses are additions for 2020:
YouTube Live Streaming ($24k) -- Note: we anticipate an offset on the cost by saving on connectivity support staff.
Onsite Childcare ($17,550) – Note: sponsorship income will be sought to offset the expense.
Major changes to the Administration budget line item includes the following:Admin Budget
CPA Services removed and now included on the front page – Line 43
Audit fees of $16,500 for FYE 2019 included
Increased insurance budget based on 2019 actuals
Community Leadership Training budget of $50,000 added
IRTF Budget elevated to front page - Line 48
Trust contribution increased by a total of $45,000, of which $12k is an increase in the ordinary contribution and $33k is set aside as a one-off additional contribution for special projects, if and when required.
We no longer have in-kind contributions and are now covering the full cost for the tools support.
The Tools Team have been consulted to determine the needs for 2020, which are listed below.
2019 Forecast – 2020 Budget Variance
The Forecast Variance percentage column (far right) compares the difference between where we expect to end the 2019 year (actuals) with the 2020 budget we are planning. Please note the explanations for any variance +/- 10%:
Administrative In-Kind Contribution: 95.75% below 2019 due to the loss of ISOC’s In-Kind support of Comms staff and Tools Maintenance Support
Other: 65.01% above 2019 due to Interest Income calculations and forecasted performance.
- Sponsorship – In-Kind: 36.67% below 2019 due to loss of in-kind NOC support from Jim Martin.
- Rebates & Comps: 25.84% below 2019 due to hotel contracts which are negotiated on a venue by venue basis – variances are to be expected due to locations and hotel concessions
- Misc: 30.68% below 2019 due to conservative estimates related to affiliate meeting requirements and related income.
Venue Costs: 14.75% above 2019 due to venue locations. Specifically, venue costs for IETF 107 in Vancouver are expensive when compared with many recent venues. As the IETF remains concerned about the possibility of attendees facing difficulties traveling to the United States, the IETF looks to Canada as an alternative and, unfortunately, there are a limited number of suitable Canadian venues.
Meeting Support: 20.86% above 2019 due to increased travel, shipping and other costs related to venue locations, as well as meeting expenses for IETF support staff (sponsorship and communications support personnel) not contracted for in 2019
NOC Support: 11.30% above 2019 due to Jim Martin’s retirement and the need to pay for the NOC lead services previously provided as an In-Kind contribution.
Site Visits: 57.66% above 2019 due to anticipated site visits for 2019 that did not occur as well as the need for site visits in 2020 that will take place in Japan to qualify Asia-Pacific venues.
Operating ExpensesRFC Production Center:
- 13.20% above 2019 due to the need for two temporary editors from January to August 2020 to support the v3 transition.
Admin Support: 33.76% above 2019 due to the delay in hiring or contracting IETF LLC staff and related benefits and support costs associated with those staff. Also, the addition of $50,000 to support Community Leadership Training.
IETF Trust Contribution:
- 68.56% increase in total contribution made up of an 18% increase in ordinary contribution and a one-off additional contribution that is new for this year. Please refer to the IETF Trust for further details.
RFP Management Expenses: 181.48% higher
Tools: Includes a buffer in to support a tools support transition if needed.
Administrative: difference allows for timing of transition from Interim to Permanent ED
- 100% higher than the projected end of 2019 because the LLC did not use funds in 2019 set aside for unbudgeted projects
Tools: 42.44% higher overall
Contracts: 69.06% higher due to loss of In-Kind Tools Support as well as separation of tasks: Tools Maintenance, Minor Tools Enhancements, and YANG Catalog Maintenance.
Tools Maintenance Support: Reflects the reality that additional tools will require support services in 2020 such as GitHub management.
Community feedback on the budget is welcome and should be made directly to the IETF Executive Director at firstname.lastname@example.org, who can also answer any questions. Please provide any feedback before the end of November 2019.