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%
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
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%
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