APNIC EC Treasurer Report, by James Spenceley. A presentation given at APRICOT 2016’s APNIC AGM (2) session on 26 February 2016.

1. 1
Treasurer’s Report
APNIC General Meeting
26 February 2016

2. Treasurers Report
• 2015 Financial Report
• 2016 Budget and Activity Plan
2

3. 3
2015 Financial Report

4. Operating Surplus - 2015
4
All amounts in AUD – Australian Dollars
Operating Surplus (AUD) Actual 2015 Budget 2015
Budget
Variance
Budget
Variance %
Total Revenue 18,774,435 18,262,000 512,435 2.8%
Total Expenses 16,805,493 17,065,293 -259,800 -1.5%
Operating Surplus before tax 1,968,942 1,196,707 772,235 64.5%
Tax Expenses 12,777 12,777 100.0%
Operating Surplus after tax 1,956,165 1,196,707 759,458 63.5%

5. Revenue 2015
5
All amounts in AUD – Australian Dollars
Revenue (AUD) Actual 2015 Budget 2015
Budget
Variance
Budget
Variance %
IP Resource application fees -18,375 -18,375 -100.0%
Sign-Up fees 456,000 380,000 76,000 20.0%
Investment income 792,041 855,000 -62,959 -7.4%
Membership fees 16,933,413 16,450,000 483,413 2.9%
Non-members fees 243,049 232,000 11,049 4.8%
Reactivation fees 37,600 24,000 13,600 56.7%
Transfer fees 77,943 75,000 2,943 3.9%
Foreign Exchange Gain/Loss 27,185 27,185 100.0%
Sundry income 225,580 246,000 -20,420 -8.3%
Total Revenue 18,774,435 18,262,000 512,435 2.8%

6. Expenses 2015
6
All amounts in AUD – Australian Dollars
Expenses (AUD) Actual 2015 Budget 2015
Budget
Variance
Budget
Variance %
Bank Charges 156,496 151,950 4,546 3.0%
Communication expenses 591,885 537,940 53,945 10.0%
Computer expenses 520,784 642,172 -121,388 -18.9%
Depreciation expenses 764,145 762,266 1,879 0.2%
ICANN contract fee 284,161 282,835 1,326 0.5%
Insurance expense 131,550 136,900 -5,350 -3.9%
Meeting and Training expenses 350,313 519,400 -169,087 -32.6%
Office operating expenses 315,608 305,107 10,501 3.4%
Professional fees 1,195,494 1,267,300 -71,806 -5.7%
Salaries and personnel expenses 9,586,575 9,460,248 126,327 1.3%
Sponsorship and publicity expenses 575,775 649,900 -74,125 -11.4%
Travel expenses 1,961,551 1,900,000 61,551 3.2%
Other Expenses 371,156 449,275 -78,119 -4.6%
Total Expenses(before tax) 16,805,493 17,065,293 -259,800 -1.5%

7. Expenses by Activity 2015
7
21%
11%
21%
47%
Actual Expenses 2015
Corporate Global Collaboration Regional Development Serving Members
20%
10%
21%
49%
Budget Expenses 2015
Corporate Global Collaboration Regional Development Serving Members

8. Expenses by Activity 2015
8
EXPENSES (AUD) Actual 2015 Budget 2015 Variance $ Variance %
Facilities 461,740 436,443 25,297 6%
Finance & Administration 1,390,437 1,394,258 -3,821 -0%
Human Resource Management 1,043,320 955,142 88,178 9%
Legal & Governance 681,216 712,084 -30,868 -4%
Total - Corporate 3,576,714 3,497,927 78,787 2%
Global Research 370,694 355,488 15,206 4%
Global Technical Community 1,043,737 898,545 145,192 16%
Inter-governmental Outreach 485,649 449,637 36,012 8%
Total - Global Collaboration 1,900,080 1,703,670 196,410 12%
APNIC Conferences 1,243,539 1,243,203 336 0%
Community Engagement 1,243,949 1,230,499 13,450 1%
Regional Technical Development 953,465 1,092,557 -139,092 -13%
Total - Regional Development 3,440,953 3,566,259 -125,306 -4%
Registration Services 1,150,169 1,296,115 -145,946 -11%
Customer Service 2,917,080 3,081,702 -164,622 -5%
Member Training 953,564 1,060,878 -107,314 -10%
Technical Infrastructure 2,866,933 2,858,742 8,191 0%
Total - Serving Members 7,887,747 8,297,437 -409,690 -5%
Total - Expenses 16,805,493 17,065,293 -259,800 -2%

9. Statement of Financial Position
9
All amounts in AUD – Australian Dollars
Financial'Position'(AUD) Dec$31$2015 Dec$31$2014 Change$ Change$%
Current'Assets 7,773,338 6,816,440 956,898 14.0%
NonBCurrent'Assets 26,933,805 25,988,431 945,375 3.6%
Total$Assets 34,707,143 32,804,871 1,902,272 5.8%
Current'Liabilities 10,829,344 10,889,951 B60,607 B0.6%
NonBCurrent'Liabilities 558,340 526,423 31,917 6.1%
Total$Liabilities 11,387,683 11,416,374 @28,690 @0.3%
Net$Assets/Total$Equity 23,319,460 21,388,497 1,930,963 9.0%

10. APNIC’s Reserve
10
All amounts in AUD – Australian Dollars

11. Financial Stability Measure
11
All amounts in AUD – Australian Dollars
Target of 18 months of Operating expenses
Dec$31$2015 Dec$31$2014 Change$ Change$%
Total&Equity 23,319,460 21,388,497 1,930,963 9.0%
Total&Cash/Cash&Equivalents 25,238,797 23,345,108 1,893,689 8.1%
%$Equity$covered$by$Cash/Equivalents 108.2% 109.1% 0.9%
Forecast/Actual&Daily&Operating&Expenses 46,077 42,558 3,519 8.3%
#$of$Months$covered$by$Equity 16.64 16.52 0.12

12. Audit
Audit Rotation Policy:
• PWC undertook audit of 2015 accounts, the second year of
their 5 year term as APNIC auditor’s.
Audit Outcome:
• PWC provided an unqualified audit opinion.
– The accounts give a true and fair view of APNIC’s financial position
– Comply with the relevant accounting standards
12

13. 13
2016 Budget and Activity Plan

14. Budget Process 2016
• Activity plan and priority list driven by inputs from:
– 2014 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 a high level of financial governance and
control in APNIC activities.
14

15. Budget Considerations 2016
• 2016 will be the first year to see a full 12 month impact of the new fee
schedule introduced in 2015.
• Incorporates the 2016 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 2016
• APNIC’s “mutuality” status for tax purposes was confirmed by the
Australian Taxation authorities in December for 3 years to June 2017.
• Budget and Activity Plan available at:
https://www.apnic.net/transparency
15

16. 16
Budget Revenue 2016
Revenue
Sign-up Fee
IP Resource Application Fee
Interest & Investment Income
Membership Fees Income
Non-Member Fees Income
Other Income
FY 2013 FY 2014
Actuals Actuals
$1,420,625 $1,323,250
$585,522 $754,563
$15,074,781 $15,903,111
$240,225 $254,706
FY 2015
Actuals
$456,000
-$18,375
$792,041
$16,933,413
$243,049
$3,612
2016 2016 v. 2015
Budget Var.
$438,000 -3.9%
-100.0%
$832,500 5.1%
$17,736,118 4.7%
$246,170 1.3%
-100.0%
Reactivation Fees
Transfer Fees
Sundry Income
Foreign Exchange Gain/Loss
Total - Revenue
Change %
$37,050 $67,800
$61,339 $81,304
$115,132 $211,569
$33,968 $26,629
$17,568,641 $18,622,931
-0.49% 6.00%
$37,600
$77,943
$221,968
$27,185
$18,774,435
0.81%
$46,000 22.3%
$75,000 -3.8%
$117,500 -47.1%
-100.0%
$19,491,288 3.82%
3.82%

17. Expenses
Bank Service Fees
Communication Expenses
Computer Expenses
Depreciation Expenses
Doubtful Debt Expenses
ICANN Contract Fees
Income Tax Expenses
Insurance Expenses
Meeting and Training Expenses
Membership Fees
Miscellaneous Expense
Office Operating Expenses
Postage & Delivery
Printing & Photocopy
Professional Fees
Recruitment Expense
Relocation Expenses
Rent and Outgoings
Salaries and Personnel Expenses
Sponsorship and Publicity Expense
Staff Training Expense
Translation Expense
Travel Expenses
Total - Expenses
FY 2013 FY 2014
Actuals Actuals
$138,337 $145,823
$490,600 $483,803
$548,748 $572,528
$753,032 $765,548
$30,990 $34,259
$136,732 $260,333
-$96,166 -$34,609
$126,751 $129,971
$332,819 $374,850
$48,294 $55,611
-$376,729
$300,757 $312,744
$45,269 $22,071
$36,586 $48,508
$1,246,373 $1,052,757
$89,472 $144,423
$8,298,111 $8,731,164
$319,623 $340,946
$163,053 $135,996
$15,255 $1,623
$1,937,230 $1,955,471
$14,585,138 $15,533,822
FY 2015
Actuals
$156,496
$591,885
$520,784
$764,145
-$54,293
$284,161
$12,777
$131,550
$350,313
$49,532
$315,608
$51,029
$33,807
$1,195,494
$119,077
$9,586,575
$575,775
$169,122
$2,883
$1,961,551
$16,818,270
2016 2016 v. 2015
Budget Var.
$170,000 8.6%
$556,186 -6.0%
$624,521 19.9%
$812,365 6.3%
$25,000 -146.0%
$262,000 -7.8%
-100.0%
$136,800 4.0%
$447,900 27.9%
$72,168 45.7%
$325,676 3.2%
$48,700 -4.6%
$37,940 12.2%
$1,473,120 23.2%
$95,000 -20.2%
$10,231,618 6.7%
$639,750 11.1%
$162,500 -3.9%
$10,000 246.9%
$1,960,000 -0.1%
$18,091,244 7.57%
17
Budget Expenses 2016

18. 18
Surplus/(Deficit)
Total - Revenue
Total - Expenses
Net Surplus/(Deficit)
FY 2013 FY 2014
Actuals Actuals
$17,568,641 $18,622,931
$14,585,138 $15,533,822
$2,983,503 $3,089,109
FY 2015
Actuals
$18,774,435
$16,818,270
$1,956,165
2016 2016 v. 2015
Budget Var.
$19,491,288 3.82%
$18,091,244 7.57%
$1,400,044 -28.43%

19. 19
Activity Plan 2016
The majority of APNIC’s resources and expenditure in the 2016 plan are
allocated to Serving Members – accounting for 57% of APNIC’s full time
equivalent employees, 50% of operating expenses and 80% of capital
expenditure.
The following tables and chart provide a breakdown of APNIC’s 2016 budget.
Activity: FTE % OPEX % CAPEX %
Corporate 14.0 18.4% 3,759,856$ 20.8% 83,265$ 4.5%
Global Cooperation 4.9 6.4% 1,695,342$ 9.4% 77,500$ 4.2%
Regional Development & Outreach 13.7 18.0% 3,586,863$ 19.8% 203,000$ 11.0%
Serving Members 43.4 57.1% 9,049,183$ 50.0% 1,486,884$ 80.3%
Total 76.0 100.0% 18,091,244$ 100.0% 1,850,649$ 100.0%

20. 2016 Budget Expense by Activity
20
Activity: FTE OPEX CAPEX
Corporate 14.0 3,759,856 83,265
Corporate : Facilities 0.2 413,182 66,765
Corporate : Finance & Administration 7.9 1,522,847 9,500
Corporate : Human Resource Management 4.5 1,105,362 3,500
Corporate : Legal & Governance 1.4 718,465 3,500
Global Cooperation 4.9 1,695,342 77,500
Global Cooperation : Global Research 1.5 425,316 70,000
Global Cooperation : Global Technical Community 2.3 988,666 4,000
Global Cooperation : Inter-governmental Outreach 1.1 281,360 3,500
Regional Development & Outreach 13.7 3,586,863 203,000
Regional Dev : APNIC Conferences 4.6 1,219,043 23,000
Regional Dev : APNIC Foundation 1.0 181,627
Regional Dev : Community Engagement 4.9 1,121,126
Regional Dev : Regional Technical Development 3.2 1,065,067 180,000
Serving Members 43.4 9,049,183 1,486,884
Serving Members : Customer Service 13.8 2,904,402 247,800
Serving Members : Member Training 6.0 1,127,182 74,000
Serving Members : Registration Services 9.3 1,611,264 6,000
Serving Members : Technical Infrastructure 14.3 3,406,335 1,159,084
Total 76.0 18,091,244 1,850,649

21. 21
Activity Plan 2016

22. Thanks..
22