The Financial Separation of TERENA and RNA

Paul Ridley
RIPE NCC

Document ID: ripe-164
Date: 8 September 1997
See also: ripe-161, ripe-165
Obsolete

Contents

Status

This document is still in discussion form. A definite version of this document will be given once all parties have agreed to its contents.

Scope

This document is a companion of the RIPE document A New Structure for the RIPE NCC: De Facto Organisational Rules (the de facto organisational rules of the RNA). The aim of this document is to detail the financial separation of the RNA from TERENA. The intended audience of this document is the RIPE NCC contributors, the TERENA General Assembly, and any interested parties. Any comments to the author are welcome.

Principles

The financial separation of RIPE NCC from TERENA is a part of the procedure to set up the RIPE NCC as a separate legal entity. The principle behind the financial separation is that all fixed assets, current assets, liabilities, and reserves built up by the RIPE NCC project of TERENA, from the period 1 April 1992 to 31 December 1997, will be transferred to the RNA. For the purposes of this document RNA means the new RIPE NCC organisation and the RNA personnel fund which may be set up. For details of this personnel fund see RIPE NCC Tax Position for 1998 and Beyond. TERENA will keep no part of the assets of the RIPE NCC project nor will it be liable for any liabilities resulting from RIPE NCC operations within the previously named period or thereafter.

Determining Monetary Values

The exact monetary values to be transferred to the RNA are as yet unknown and can only be fixed once the TERENA 1997 financial accounts have been closed and audited. However to give an indication, it is estimated that actual monetary transfer i.e. the value of the fixed assets plus current assets will be in the region of ECU 1,636,000. This sum does not take into account any liabilities to be paid or reserved for. It is estimated that RNA will take on liabilities totaling approximately ECU 586,000. The exact values will be determined upon analysis of the audited version of the "RIPE NCC project" balance sheet as at 31 December 1997, which is part of the audited 1997 financial accounts of TERENA. Estimated values for all assets and liabilities are shown below. The estimated values stated above are based upon the latest information that we have. Please note however that these figures although as accurate as possible, do remain estimates. The purpose of using estimated figures is to provide all parties concerned with an indication of the values in question.

In order to arrive at the estimated figures for the total assets and liabilities of the RIPE NCC many financial aspects of the organisation have been analysed in detail. For information purposes the assets of the RIPE NCC are made up of:

•   Fixed assets: furniture, computers, building infrastructure
•   Bank accounts
•   Petty cash
•   Debtors
•   Prepayments

•   Creditors
•   Accruals
•   VAT
•   Company Tax