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IETF Administration LLC 2023 Budget
- Jay DaleyIETF Executive Director
20 Mar 2023
The IETF Administration LLC has finalised its 2023 budget following a community consultation.
(While our budget was published in line with our normal schedule, this explanatory post blog should have been published at the same time but was unintentionally delayed, for which we apologise.)
In developing its budget the LLC continues to give careful consideration to each budget request as well as the needs of the community as a whole. The IETF Administration LLC 2023 Budget has now been finalised and approved by the LLC Board. It contains the following sections:
- Budget
- Meeting Budget
- Chart of Accounts
Key Assumptions
- ISOC contribution as per our agreement
- All meetings will go ahead with the same fee structure and with lower levels of onsite registration than pre-COVID. The fee structure will be reviewed during the year
- Fundraising will meet the targets set out two years ago.
- All strategic retreats etc will go ahead.
- Air travel costs will be at 50% above pre-COVID levels.
- Investments increase 10% over the year, as confirmed with our investment advisors
- 7.5% inflation reflected in staff and some admin costs
Summary
| 2023 Budget | 2022 Budget | Variance | |
|---|---|---|---|
| Non-Meeting Revenue | $ 10,264,250 | $ 9,074,098 | $ 1,190,152 |
| Meeting Revenue | $ 3,685,791 | $ 3,934,315 | $ (248,524) |
| TOTAL REVENUE | $ 13,950,041 | $ 13,008,413 | $ 941,629 |
| Operating Expenses | $ 6,353,650 | $ 5,692,400 | $ 661,250 |
| Meeting Expenses | $ 4,933,815 | $ 4,287,606 | $ 646,208 |
| TOTAL EXPENSES | $ 11,287,465 | $ 9,980,007 | $ 1,307,458 |
| NET INCOME | $ 2,662,577 | $ 3,028,406 | $ (365,829) |
| Capital Expenditure | $ 752,400 | $ 573,039 | $ 179,361 |
| NET INCOME AFTER CAPITAL | $ 1,910,177 | $ 2,455,367 | $ (545,190) |
Key Changes from 2022 Budget
Budget changes:
- Fundraising
- The budget for ISOC matched funds is $0.5m lower than previously budgeted due to lower than projected fundraising in 2022.
- Meetings:
- For the 2022 budget we estimated a faster growth in numbers than we saw in the end and so for 2023 we are being more conservative with our predictions.
- Assumes onsite childcare for all meetings.
- Fee waivers are now budgeted as an expense, which are offset by sponsorship. Previously these were not accounted for.
- Administration:
- Inflationary increase in all wages.
- Additional 0.5 FTE role for Secretariat to handle the increased meeting administration as we take over functions previously handled by meeting hosts that they were unwilling to continue with.
- Community leadership
- New project budgets for and Outreach Program and a Diversity Program that will be coordinated through EMODIR.
- New IETF Trust budget, totalling $311k.
- Tools:
- Robert Sparks is now on the staff but his costs are still shown in the Tools section.
- Despite the outlook we are stepping up our tools investment to get through a range of key projects in 2023, with the expectation that this will continue in 2024 and then drop off.
- Included $50k for implementing new RFC Editor website and $50k for user experience research.
Presentation changes:
- Some meeting expenses are now split out by the nature of the sponsorship that pays for them, to better show how we spend this money.
- Added a ‘Host recharge’ line for such things as t-shirt and social event expenditure no.
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 December 2022 are as follows:
- Continuity and Operations $4,797,313
- Board Designated Reserve $9,663,027
- Restricted Endowment $3,709,578
- Business Opportunities $500,590
Our plan to produce full reserve forecasts for this budget (FY 2023) have been delayed due to the late introduction of a new financial system and the extreme volatility of the current investment market.