[Community-Discuss] Resolution 201604.274 about Set-Up fees

[Owen DeLong]

> > 3. AFRINIC requires more revenue, not less.
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> > Why does AFRINIC requires more revenue ? For what purpose ?
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> The chair never responded to this adequetly in his most recent submission.
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A competent reading of the audited financial statements from the last 2 years will pretty well cover this.
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> > 4. If the proposed charging scheme had been in place during 2015, then income from allocation and assignment fees would have been about USD 550k.  Actual income from allocation and assignment fees in 2015 was about USD 350k. Therefore, the clarification that allocation or assignment fees are once per allocation or assignment, not once per member, is expected to raise about USD 200k per year.
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> > Motive behind an expected US $200k/yr? 
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> The chairs response to this was never clear in his most recent submission of fees.
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First, my impression is that this is a clarification of and correction in previous erroneous implementation of the existing fee structure.

To my understanding, this is sufficient explanation.

To address your comments on an expected 200k/year…

Using a one-year snapshot on the year with the most allocation/assignment activity in history is hardly demonstrative of the likely average amount.

However, even assuming that it is 200k/year, that isn’t unreasonable given that for 2015, AfriNIC contributed only 402,245 to its reserves bringing the total reserves to 1,683,932 vs. an annual operating expense of 3,884,049.

It is not unreasonable for an organization to have at least a one year (ideally 2) reserve and AfriNIC is far below this. Adding 200k/year to the reserves would help bring this to a more normal state and then perhaps a fee reduction could be considered once the reserves have been restored.

At the rate of 600k/year, it will still take almost 10 years to get to a 7.5 Million dollar reserve which is really what AfriNIC should have just based on widely accepted good business practices and the data from the annual report.

I trust that the board knows this. I suspect they had reasons for not being quite so explicit about it, but since I am not privy to those reasons, I am happy to help you read the AFS as needed.
  
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> > 5. Since it is being introduced in the middle of 2016, the impact on the 2016 revenue is expected to be an additional USD 100k.
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> > Motive behind an expected additional US $100k for 2016?
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> This was never responded too adequetly?
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It was, but perhaps you had trouble understanding it because it was not sufficiently explicit. See my response to the previous question for the explicit details.


Owen


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