Issue Date: Revision: Treasurer’s Report APNIC Member Meeting – March 2015 March 2015 01.

Issue Date:

Revision:

Treasurer’s Report

APNIC Member Meeting – March 2015

March 2015

01

This document is uncontrolled when printed. Before use, check the APNIC electronic master document to verify that this is the current version.

Treasurers Report

• 2014 Financial Report

• 2015 Budget and Activity Plan

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Issue Date:

Revision:

2014 Financial Report

March 2015

01

Operating Surplus - 2014

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All amounts in AUD – Australian Dollars

Statement of Income - Revenue

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All amounts in AUD – Australian Dollars

Statement of Income - Revenue

Revenue for 2014 was $18,622k

$529k(3%) above budget

– Membership Fees $275k above budget• Membership growth continues on trend• Account closures and transfers less than forecast

– Investment income $135k above budget• Investment fund performed above expectations• Income of $589k and Capital growth of $681k• $3M transferred to Investment fund during 2015

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Statement of Income - Expenses

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Statement of Income - Expenses

Expenses for 2014 were $15,534 $558k(4%) below budget

– Professional fees down by $269k • saved in engineering assistance, Human resource projects, PR engagement, and

fees capitalised where possible.

– Travel expense below budget by $95k• representing savings from APNIC38 being held in Brisbane

– Sponsorship fees below budget • $51k written back from 2013 Sponsorship costs• reduced expenditure on Membership development activities

– Meeting and Training below budget by $50k • primarily as a result of savings in venue costs for training by utilising hosts.

All amounts in AUD – Australian Dollars

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Statement of Financial Position

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Statement of Financial PositionCurrent Assets:

• A reduction in funds relating to the SIDA grant fund $370k

• The value of prepaid deferred expenses reduced by $55k when compared to the previous year

Non-Current Assets

• Surplus operating cash of $3m was transferred to the fund progressively through the year. All investment income and was reinvested in the portfolio, and the funds have achieved strong capital growth during this period.

Current Liabilities

• Unearned Revenue that represents the prepaid portion of annual membership fees was $491k above the December 2014 balance reflecting increases in APNIC’s membership

Equity

• APNIC’s equity position has increased by 20% from $17.8m to $21.4m over the period, including the operating surplus of $3.1m at the end of 2014. 

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Membership Growth

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Strongest net growth in Australia (162), Hong Kong(131), and Japan(66) contributed a great portion of the increase in membership.

APNIC’s Reserve

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All amounts in AUD – Australian Dollars

Financial Stability Measure

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All amounts in AUD – Australian Dollars

Target of 18 months of Operating expenses

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Audit

Audit Rotation Policy:

• As part of the 5 year audit rotation policy, Ernst &Young where replaced by Price Waterhouse Coopers for the 2014 Audit.

Audit Outcome:

• PWC provided and unqualified audit opinion.– The accounts give a true and fair view of APNIC’s financial position– Comply with the relevant accounting standards

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Issue Date:

Revision:

2015 Budget and Activity Plan

[Date]

[xx]

Budget Process 2015

• Activity plan and priority list driven by inputs from:– APNIC Survey– EC Strategic Guidance– APNIC’s existing operational commitments

• Bottom up, zero based expense budgeting

• Revenue derived from detailed analysis of Membership and income forecasts

• Continued focus on financial stability

• Continue to ensure high level of financial governance and control in APNIC activities.

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Budget Considerations 2015

• Includes implementation of revised Member and Non-Member Fee Schedules– Approved by EC in November 2014,effective from January 1, 2015

• Incorporates 2015 Activity Plan – A view of APNIC’s expenses grouped by Activities– Allocation of FTE, Operating and Capital Expenses– Includes details on major initiatives and projects for 2015

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Revised Member Fee Schedule

Key changes are:– The minimum Member fee reduced from $1,180 to $1,050– The ‘IP Resource Application fee’ of $1,750 replaced with a reduced,

once-only $500 ‘Sign-Up fee’– New members requesting resources no longer join as Associate

Members– Associate Members become a tiered Member when receiving their

initial resource delegation – Reactivation fees reduced from $2,700 to $1,000– LDC discount of 50% continues to apply to all fees– NIR continue to pay 190% Premium

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2015 Activity Codes

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2015 Budget Expense by Activity

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Budget Revenue 2015

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New fee introduced in 2015

Fee removed from new fee schedules

Budget Expenses 2015

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Includes APNIC contribution to ISIF and other Research grants, NRO Expenses, Increased sponsorship activities, NOGs etc.

Includes APNIC and APRICOT meetings, Regional Meetings, and Membership Development activities

Budget Surplus 2015

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Thanks..

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