[Community-Discuss] Cotonou Meeting (off-topic)

[Andrew Alston]

Since we decided to talk budgets and finance – I was kinda bored and decided to run some numbers – if AFRINIC was a pure IP registry – what would it cost its members as compared to at the moment.  These numbers are purely theoretical – except where I calculate in actual staff costs at current, number of work days in a year etc – those are all based straight out of the AFS.

So – I took the CEO’s salary – as per the 2017 AFS – and took the HR cost – and calculated the average cost per staff member at AFRINIC with the exclusion of the CEO.
Then – I calculated down to an hourly rate per staff member on average – based on a 250 work day year (which is what Mauritius was in 2017) – at 8 hours a day.

This came out like this:

HR Costs

CEO Cost

$161,000.00

Staff Cost

$2,093,317.00

Average Cost Per Staff Member

$41,113.13

Work Days for 2017 (MU)

250

Hours Per Day per Staff Member

8

Cost Per Hour Per Staff Member

$20.56


Then – I said ok – based on my previous calculations – lets work on an average of 75 hours work per application (current average number of hours per application as of latest delegation file, including really small applications) and calculate a pure cost recovery per application – this looked like this:

Money Generated from Applications (Cost Recovery)

Average Hours Per Application

75

Cost Per Application

$1,541.74

Total Applications

250

Money Generated from Applications

$385,435.57


Then I said – let’s revise things a bit for a hypothetical.

We’d drop to a staff count of 20 + the CEO – at the same average rate – that retains the 9 current hostmasters + 11 additional support staff (and I think that was being pretty generous).
Allocate $50k a year for travel – because if we being a pure registry – that’s pretty much all it would cost – anything else can be done online in this hypothetical.
The office costs are down because you have a much smaller staff compliment – so we’ll cut that to $150k
We’ll allocate $300k for miscellaneous expenses – and then we’ll add $200k a year to generate surplus for the organisation.
We’re already cost recovering from applications – so we’ll deduct that from all of this and this is what it looks like:

Revised to do purely allocations

20 Staff

$822,262.55

Office Space

$150,000.00

Travel Costs

$150,000.00

Ceo's Salary

$161,000.00

Miscellaneous Costs

$300,000.00

Surplus Generation

$200,000.00

Application Fees

-$385,435.57

TOTAL

$1,397,826.98


Then – we say we have 1550 members (its actually slightly more than that) and what do we find…

Cost Per Member (Recurring)

$901.82


Now – considering that the cheapest LIR pays $1400 a year – and the allocation fees at minimum of $1750 per application at the moment – well… food for thought about how much we, as members, want to really be paying for over and above what the registry should be doing as its core business…

Andrew

From: Andrew Alston <Andrew.Alston at liquidtelecom.com>
Date: Thursday, 21 June 2018 at 08:02
To: S Moonesamy <sm+afrinic at elandsys.com>, "community-discuss at afrinic.net" <community-discuss at afrinic.net>
Subject: Re: [Community-Discuss] Cotonou Meeting (off-topic)

SM - use the AFS not the budgets please

Andrew

Liquid Telecommunications - Group Head Of IP Strategy
________________________________
From: S Moonesamy <sm+afrinic at elandsys.com>
Sent: Wednesday, June 20, 2018 10:39:17 PM
To: community-discuss at afrinic.net
Subject: Re: [Community-Discuss] Cotonou Meeting (off-topic)

Hello,

I read a comment about travels costs since 2014. The budgeted item
[1] was as follows:

Year
2014 $410,000
2015 $390,000
2016 $525,400
2017 $525,000
2018 $490,000

Regards,
S. Moonesamy

1. Amounts are in USD.


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