An Investigation on a new financial structure for TERENA GA(02)011

1. An Investigation on a new financial structure for TERENA GA(02)011 A Stylianou S Jaume

2. Contents • General Principles • A new financial model • Core Tasks • Core Organisation • TERENAs current model • Analysis based on TERENAs current model • Points for discussion • Allocate time-cost to activities

3. General Principles • TERENA Mission • promote and participate in the development of a high quality international information and telecommunications infrastructure for the benefit of Research and Education” • How (financially) to achieve the TERENA mission • Membership fees • External funding of activities (members or other funding agencies) • How (technically) to achieve the TERENA mission • Require a core organization as this is dictated by the core tasks of TERENA • Expand as required and according to what TERENA • GA decides

4. A new Financial Model • Fixed membership fee to cover core tasks (including projects and activities of general interest), and adjusted periodically for inflation • members pay for other technical projects or other activities which are of lesser interest but still of interest to a section of the community. TERENA acts as the catalyst and initial coordinator. • Increase the contribution of external funding • Ensure the long term stability and financial • viability of TERENA

5. Main Core tasks • Providing technical/administrative support to task-forces and technical projects in areas of common interest to the membership. • Organising workshops on (new) topical technical subjects of common interest to the membership. • Providing an environment for fostering new initiatives of the European research networking community. • Organising the annual TERENA Networking Conference. • Providing (technical and managerial) advice and assistance to TERENA member organisations, and promoting knowledge transfer. • Promoting members’ interests by representing the common interests and opinions of the membership in contacts • with relevant organisations. • Providing a TERENA website with up-to-date information.

6. Other Core tasks • Providing support to the TERENA GA, TEC, TAC and TTC. • Organising an annual seminar for the TERENA General Assembly. • Organising at least one workshop per year directed at the training of people from less advanced networking organisations. • Offering meeting facilities in the TERENA offices to the members • Anything else???

7. Core Organization • The organisation requires the appropriate resources to carry out the core tasks. In addition to a building, equipment, furniture etc, a secretariat is required consisting of • 1 Secretary-General, • 1 Chief Technical Officer, • 3 Project Development Officers, • 0.5 IT Support Officer, • 1 Chief Administrative Officer, • 1PR & Conference Officer, • a part-time (0.6) Financial Administrator • 1 Secretary. • This organisation is able to provide annually (at least) • technical / admin support to 5 task-forces • or similar groups, • project-officer support to 3 projects, • organise 2 topical workshops and 1 training • workshop

8. TERENA’s current model (Based on 2002 figures) * Membership fees only

9. Analysis based on TERENAs current model • Dynamic rather than Static approach: • In a static model, current fees do not cover core costs. In a dynamic model they subsidize the core costs-activities • TERENA success brings in extra funds that help offset core costs; • Fees must provide critical mass in order to have success in attracting other funds. • 2 categories of activities in place • Funded as TERENA projects by TERENA funds and – or external funds • Kick started by TERENA and funded externally • (either by members or other funding agencies)

10. Points for discussion • Increase share of voluntary member contributions for • projects? • Charge part of TERENA overheads to member-funded • projects in future? • Charge registration fees for TERENA workshops to • members? • How can we get more member-funded projects? • Which additional mechanisms needed for that? • New ways in which members can suggest TERENA • activities?

11. Allocate time-cost to activities activities - tasks TF X TF Y ACT P Conference Proposal A

12. Would an Activity cost centre approach help? • Cost Centre based on Activity – Activity XY • 2000 Expenditure 20000 Income 20000 • 0.3 PDO for proposal preparation 90% Terena finding • 0.1 CTO verification 5% XYZ NREN • 0.025 Accounting services 5% PQR Company • 0.025 SG final confirmation • 0.025 Secretarial services • 500 overheads • 2001 Expenditure 75000 Income 35000 • 0.75 PDO for technical support 70% Terena Funding • 0.1 CTO management 15% XYZ NREN • 0.025 Secretarial services 15% PQR NREN • 4000 equipment • 2000 overheads • 1500 Travelling and subsistence • 2002 Expenditure 70000 Income 110000 • 0.75 PDO for technical support 90% EU • …….. …..

13. Would an Resource cost centre approach help? Cost Centre based on Resource – Resource PDO A 2000 PDO A time-Cost allocation 10% Proposal preparation for PRABC 25% Technical Support for TFSSS 50% Technical Support for Activity X 10% Training, meetings, general admin overhead 2000 Funded by 50% Terena funds 25% EU funding for TFSSS 25% XYZ NREN and TTT NREN for activity X

14. What is the next step?

15. Many thanks to the secretariat for helping us prepare this (especially Bert and Karel)