The industry will be going through a period of change, as the exhaustion of IPv4 addresses draws nearer. This is reflected by the development of policies and service introductions around this issue, some of which are expected to increase the workload for the RIPE NCC in the coming years.

As a result of this, the The budgeted costs for 2010 are 13% 2007 are 4% higher than the budgeted costs for 2009. This is the 2006. This is mainly a result of the increased staff levels

and greater operational expenses necessary to support the expected increase in the RIPE NCC's workload. For the particulars, please see: “RIPE NCC Activity Plan 2010”.RIPE NCC necessary to enable the RIPE NCC to expand its Membership Services and to improve its Information Services. Statement of Income & Expenditure RIPE NCC

In kEUR	Budget		Estimate	Difference
Income	2010	2009	2009	10/B 09	10/09
Service Fees	15,919	14,457	14,214	1,462	1,705
End User Fees	167	199	99	(32)	68
RIPE Meeting	281	255	208	26	73
Other Income	215	255	175	(40)	40
Total Income	16,582	15,166	14,696	1,416	1,886
Actual	Difference
Income	2007	2006	2005	2007/06	2007/05
Membership Fees	10,764	10,457	11,789	307	(1,025)
RIPE Meeting	227	246	243	(19)	(16)
Other Income	115	125	72	(10)	43
Total Income	11,106	10,828	12,104	278	(998)
Expenditure
Personnel Expenses	9,259	8,232	8,400	1,027	859	6,967	6,450	5,857	517	1,110
General Operating Expenses	4,651	4,224	3,803	427	848
RIPE Meeting	809	606	631	203	178
Training Courses	337	399	306	(62)	31
Regional Meetings	160	190	190	(30)	(30)
Financial Expenses	98	85	85	13	13
2,828	2,897	2,327	(69)	501
RIPE Meeting	356	364	455	(8)	(99)
Training Courses	283	245	269	38	14
Regional Meetings	90	80	54	10	36
Financial Expenses	72	72	40	-	32
Subtotal Operational Expenses	15,314	13,736	13,415	1,578	1,899
Miscellaneous Expenses	370	248	200	122	170
Depreciation	1,621	1,307	1,020	314	601
Total Expenses	17,305	15,291	14,635	2,014	2,670
Surplus/Deficit before interest income	(723)	(125)	61	(598)	(784)
Interest Income	400	855	775	(455)	(375)
10,596	10,108	9,002	488	1,594
Miscellaneous Expenses	330	400	263	(70)	67
Depreciation	769	728	468	41	301
Total Expenses	11,695	11,236	9,733	459	1,962
Surplus/Deficit Before Interest Income	(589)	(408)	2,371	(181)	2,960
Interest Income	476	357	313	119	163
Surplus / Deficit	(323)	730	836	(1,053)	(1,159)

(113)

(51)

2,684

(62)

(2,797)

Following from the Charging Scheme 2007, a rebate of 2.5 MEUR will be redistributed to existing members. This redistribution will not affect the budget 2007 as the 2.5 MEUR will be directly discounted from the excess reserves that have accumulated in the RIPE NCC Clearing House.

Development of RIPE NCC Reserves

The table below summarises the RIPE NCC's capital development. capital development of the RIPE NCC. The capital consists of the RIPE NCC reserves including the surplus/deficit surplus / deficit for the year at issue.

Note: *The capital in 2007 includes the member rebate of EUR 2.5 million.

**The total expenses 2008 include a pay back from the Personnel Fund of EUR 1.5 million

Expenses per Activity

Overall, expense levels increase in 2010. For Membership Services, this increase is

Expenses

The expenses per activity show an increase for Membership Services as

Year	Surplus / Deficit	Capital at 31 December	Total expenses per year	% Capital of Expenses Total Expenses
2001	1,382	6,579	7,721	85 %
2002	(2,369)	4,210	10,442	40 %
2003	3,077	7,287	9,996	73 %
2004	2,698	9,986	9,739	103%	103 %
2005	2,684	12,670	9,420	135%
2006	2,483	15,153	9,980	152%
2007	1,070	13,764*	11,674	118%
2008	2,623	16,387	11,765**	139%
Estimated 2009	836	17,424	14,635	119%
Budget 2010	(323)	17,101	17,305	99%
9,733	130 %
Estimated 2006	2,140	14,810	10,039	148 %
Budget 2007	(113)	12,197	11,695	104 %

a result of enhanced registry services, such as the implementation of the RIPE NCC Customer Service Desk. In addition the continuation of the RIPE NCC's support for Internet Number Resource Certification, and an increased focus on data quality. The substantial increase in Certification contributes to the increase.The expenses for Coordination Activities

is due to the increased External Relations efforts and increased RIPE meeting expenses.In 2009 substantial investments were made to improve Information Services. For 2010 certain areas continue to be further enhanced but the overall costs are in line with 2006. For 2007, the RIPE Meeting expenses include RIPE NCC staff expenses associated with the RIPE Meetings.The overall expenditure

for Information Services will decrease with improvement projects being completed. Previously the table below was shown including miscellaneous expenses, these are costs like Bad Debts and Depreciation that not directly attributable to any activity. Therefore for the Budget 2010 these have been excluded.

increases to improve this portfolio of services provided by the RIPE NCC. This includes developing more useful and ready-to-use products and providing RIPE NCC members with more comprehensive reporting.

	Budget 2010		Budget 2009			Budget 2007		Budget 2006		Difference
Amounts in kEUR	Amount	%	Amount	%	Amount	%
Membership Services	6,623	43%	6,301	46%	322	5%
Coordination Activities	6,605	43%	5,334	39%	1,271	24%
Information Services	2,086	14%	2,101	15%	(15)	-1%
Total Operational Expenses	15,314		13,736		1,578	11%
7,386	63%	6,918	61%	468	7 %
Co-ordination Activities	2,953	25%	2,988	27%	(35)	-1 %
Information Services	1,356	12%	1,330	12%	26	2 %
Total Expenses	11,695		11,236		459	4 %

The table below shows new or significantly developed activities for 2010. The figure presented is the new activity for 2007. The figures presented for this activity are the direct allocated costs and does do not include an overhead or management fee.

150

Capital expense 152 kEUR

Activity	Direct costs	Capital Expenses
Support for Internet Number Resource Certification
	57 kEUR	259 kEUR
Implementation of policy 2007-01	124 kEUR	-
Registration Data Quality	116 kEUR	-
RIPE Labs	214 kEUR	-
Information Services	252 kEUR
221 kEUR in 2007

Income and Fees per Billing Category (Based on the Charging Scheme 2009) Proposed Charging Scheme)

Members

Income	No. of Local Internet Registries (LIRs) Registries	Fee	Amount in kEUR
New members
Sign-up Fee	650	2,000	1,300
Sign-up Fee	598	EUR 2,000	1,196
Service Fee, Extra Small	650	1,300	524
Existing members
Extra Small	1,459	1,300	1,897
Small	3,540	1,800	6,372
Medium	1,288	2,550	3,284
Large	258	4,100	1,058
Extra Large	64	5,500	352
Independent resources			1,132
Total Service Fees			15,919
598	EUR 1,300	389
Existing Members
Extra Small	1,211	EUR 1,300	1,574
Small	2,379	EUR 1,800	4,282
Medium	902	EUR 2,550	2,300
Large	183	EUR 4,100	750
Extra Large	45	EUR 5,500	248
Administration Fee	25	EUR 1,000	25
Total Membership Fees			10,764

Note:Income received from new members is estimated on the basis of the budgeted number of new Local Internet Registries (LIRs) per month multiplied by the pro rata annual service fee. at 50% of the service fee due to an equal spread of new members across the year.