Lynn,
Inline
-----Original Message-----
From: ietf-bounces(_at_)ietf(_dot_)org
[mailto:ietf-bounces(_at_)ietf(_dot_)org]On Behalf Of
Lynn St.Amour
Sent: Monday, December 13, 2004 01:45
To: ietf(_at_)ietf(_dot_)org
Subject: IASA BCP -02 Reserves - section 2.2 /7 and 5.6
Bert, Rob,
please find below comments on "reserves". Thanks again for
all your efforts.
Section 2.2
7. The IASA shall
work with ISOC to (?)
Mmm... it seems to me that the IASA should establish a target.
Having said that, I could live with the addition.
I agree that IASA and ISOC together need to work on a plan to
actually build the reserve. That is actually stated later on in the
sentence.
establish a target for a reserve fund to cover normal operating
expenses and meeting expenses in accordance with prudent planning,
and ISOC shall work with the IASA to build up and maintain the
s/reserve./reserve as part of ISOC's overall reserve strategy and
provisioning./
The changes above are to reflect the last known agreement (at least
from ISOC's perspective it was the last known :-) . Some additional
comments below.
Lynn, since this is a "principle", I would rather see harald declare
consensus on it first. I think you are right, in that we do have
similar text in sect 5.6 but I am still not sure it is just an
editorial change that I can just make.
Harald?
5.6 Operating Reserve
As an initial guideline and in normal operating circumstances, the
IASA should have an operating reserve for its activities
sufficient to cover 6-months of non-meeting operational expenses,
plus twice the recent average for meeting contract guarantees.
However, the IASA shall establish a target for a reserve fund to
cover normal operating expenses and meeting expenses in accordance
with prudent planning. Rather than having the IASA attempt to
build that reserve in its separate accounts,
I don't believe this sentence reads properly given we're following a
divisional accounting model (more appropriately called a cost center
model?) as the accounts will not be held physically separate.
Not physical, I understand that.
But Sect 5.1 starts off to talk about "separate set of accounts".
And so this text in sect 5.6 just tries to be consistent with that.
W.r.t. the "divisional" vs "cost center" coounting....
We got the text on "Divisional Accounting" and on "sepearet set of
accounts" from Glenn Ricart, so what should it be. If we do make a
change we need to make it consistent over the whole doc.
Probably best to keep that for working out when we sit down with the
accountants?
Perhaps delete that part and begin the sentence with: "the IASA looks
to ISOC to build ...." ?
??
the IASA looks to ISOC to build and provide that operational
reserve, through whatever mechanisms ISOC deems appropriate: line
of credit, financial reserves, meeting cancellation insurance, and
so forth. Such reserves do not appear instantaneously; the goal is
to reach this level of reserves within 3 years after the creation
of the IASA. Such funds shall be held in reserve for use by IASA
for use in the event of IETF meeting cancellation or other
unexpected fiscal emergencies. These reserves shall only be spent
on IETF support functions.
The penultimate sentence above seems to be redundant, and in any case
the last two sentences are not in agreement with the earlier ones
that say it may be held as a line of credit, etc. nor with the notion
that the IASA would not be holding a separate reserve (2.2 - 7 seems
to imply the same thing?). Finally, access to these reserves would
expect to follow normal IAOC and ISOC approval processes for any
budget overruns and would not automatically be available for use by
IASA in the event of meeting cancellations or other emergencies.
Maybe replace the last two sentences with some variation of "Access
to these reserves would expect to follow normal IAOC and ISOC
approval processes for any budget overruns."
I believe that the current text was quite extensively discussed in the
past. I am not sure I can just go ahaead and make changes based on
one person bringing it up. So I'd like to see more support on the list
first.
Bert
Best regards,
Lynn
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