TERENA / RNA Financial Separation
Ridley
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The Financial Separation
of
TERENA and RNA
Paul Ridley
RIPE NCC
Document: ripe-164
See also: ripe-161, ripe-165
Status
This document is still in discussion form. A defi-
nite version of this document will be given once all
parties have agreed to its content.
Scope
This document ripe-164 is a companion document of
ripe-161 (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 authors are
welcome.
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ripe-164.txt Page 1
TERENA / RNA Financial Separation
Ridley
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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, cur-
rent 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 per-
sonnel fund which may be set up. For details of this
personnel fund see ripe-165. 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 97, which is part of the
audited 1997 financial accounts of TERENA. Esti-
mated 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 pur-
pose of using estimated figures is to provide all
parties concerned with an indication of the values
in question.
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TERENA / RNA Financial Separation
Ridley
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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
analaysed 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
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ripe-164.txt Page 3