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AFRINIC Finance Function UpdatesAFRINIC Finance Function Updates

• General UpdatesGeneral Updates• 2012 Financial Review 2012 Financial Review • ChallengesChallenges• ProspectsProspects

Finance Function General UpdatesFinance Function General Updates

• Department UpdatesDepartment Updates• Area of responsibilitiesArea of responsibilities• 2012 Focus2012 Focus• AchievementsAchievements

2012 Financial Review2012 Financial Review

• 2012 has been pretty much a typical year.2012 has been pretty much a typical year.• 2012 can be characterized by the 2012 can be characterized by the

recruitments of resources to fill in positions in recruitments of resources to fill in positions in line with our new structure.line with our new structure.

• There has been some delays which are There has been some delays which are normally associated with recruitments. Such normally associated with recruitments. Such delays are reflected in our costs as under delays are reflected in our costs as under expenditure in some areas.expenditure in some areas.

• On the other hand, the intake of new On the other hand, the intake of new members has also been slower than members has also been slower than anticipated.anticipated.

2012 Financial Review2012 Financial Review

OPERATING SUMMARY F/Cast 2012 F/Cast 2012vs vs

Operating Income: Budget Actuals Budget F/Cast Actuals2011 Budget 2012Fees Revenues $2,723,249 $2,453,781 $3,017,127 $2,672,010 9% -11%Grants & Sponsorships $100,000 $56,653 $135,000 $75,000 32% -44%Other Income $19,233 (116,949) $31,000 $111,613

$2,842,482 $2,393,485 $3,183,127 $2,858,623 19% -10%Operating Costs:

Administration $1,878,041 $1,647,612 $2,307,394 $2,012,651 22% -13%Distribution $904,573 $742,051 $805,343 $809,857 9% 1%Other $50,000 $0 $35,000 $10,000

$2,832,614 $2,389,663 $3,147,737 $2,832,508 19% -10%

$9,868 $3,822 $35,390 $26,115

2011 2012

2012 Financial Review2012 Financial Review

Major Costs Movements:F/Cast 2012 F/Cast 2012

vs vsBudget Actuals Budget F/Cast Actuals2011 Budget 2012

HR $1,294,069 $1,023,055 $1,809,766 $1,499,037 47% -17%Office expenses $221,520 $257,581 $205,796 $242,397 -6% 18%Insurance $8,333 $5,504 $11,667 $4,395 -20% -62%Marketing expenses $86,573 $45,018 $78,350 $39,343 -13% -50%Meeting expenses $241,400 $198,558 $182,900 $141,961 -29% -22%Members Training $28,000 $16,803 $37,100 $8,333 -50% -78%Travelling expenses $450,000 $385,903 $366,667 $485,220 26% 32%

2011 2012

2012 Financial Review2012 Financial Review

ChallengesChallenges

• Our main challenge has revolved around our fee Our main challenge has revolved around our fee collectionscollections

• AFRINIC sole source of revenue is membership AFRINIC sole source of revenue is membership fees. Delays in fee settlement put a major burden fees. Delays in fee settlement put a major burden on our operations, in that resources have to be on our operations, in that resources have to be deployed to chase members for payments. deployed to chase members for payments.

• As from 2012, AFRINIC has started to apply As from 2012, AFRINIC has started to apply the provisions contained in the RSA with the provisions contained in the RSA with regards to non payments.regards to non payments.

• As from 2013, late payment penalties shall be As from 2013, late payment penalties shall be applied accordingly.applied accordingly.

ProspectsProspects

• AFRINIC operation is growing in size and AFRINIC operation is growing in size and complexities.complexities.

• Such growth will be reflected in our financials and Such growth will be reflected in our financials and shall have a direct impact on the level of services shall have a direct impact on the level of services that we continue to provide.that we continue to provide.

• With growth comes challenges. At AFRINIC, we are With growth comes challenges. At AFRINIC, we are constantly matching our income against our constantly matching our income against our operating costs without compromising service operating costs without compromising service level.level.

• We can say that we have reached the level of a We can say that we have reached the level of a mature entity and the fruits of our investments mature entity and the fruits of our investments shall manifest itself in the years ahead.shall manifest itself in the years ahead.

I Thank you for I Thank you for your attentionyour attention