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
    Scope
    Principles
    Determining Monetary Values


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

The liabilities of the RIPE NCC are made up of:
  Creditors
  Accruals
  VAT
  Company Tax