RE: [legalxml-sc] MS Budget Meeting

Steering Committee,

For those who couldn't make the conference call or couldn't make all of it, here are the notes that I took.  This is not a complete representation of everything that was discussed and reflects my understanding and interpretation rather than a chronicle of events.  Without further ado:

Members of the LegalXML Member Section Steering Committee met via tele-conference with members of the OASIS staff to discuss the Member Section budget:

In attendance: Jim Harris (portions), Rolly Chambers (portions), Mark Ladd, Eric Eastman, Scott McGrath, Dee Schur, Cathie Mayo

Even though we are budgeted to spend ~$4,000 more than we take in during 2009, our budget is only borderline acceptable because our projected, year-end cash-on-hand is too high.  By its charter (and tax law?) all of OASIS needs its "cash-on-hand" / "deferred revenue" to be close to 100%.  OASIS is currently at about 101%.  The rule of thumb that they use is that any given member section should not be over 200% at the end of any year.

For those (maybe only myself) unfamiliar with the term "deferred revenue" in this context, that is the prorated portion of a prepaid membership that would fall into next year.

We are projected to finish 2009 at $13,718 / $5,062 = 271%.  The OASIS folks are concerned that if we don't actually spend a portion of the money we have budgeted for the MTG Technical Assistance (TA) consulting until 2010, our ratio could go over 300%.  The rationale for the 200% rule is that a company that pays for an OASIS membership this year should see its interests advanced this year.

Mark Ladd is concerned that limiting the cash reserves hampers a small TC or MS in that it prevents us from taking on even a medium-sized project in any one year.  I don't know the procedure for escalating a concern like this.  It certainly seems reasonable to me to create an exemption in the 200% rule for long-running member sections to be able to save up $20K - $30K for a small but significant future undertaking.

In addition to the concern that the TA consulting might not all get spent, the OASIS folks had a couple other concerns/suggestions about that line item:

Recipients of free technical assistance should be aware that they just got a gift from OASIS and be informed of the benefits of OASIS membership.

There should be a report back to the TC on any activities with an eye toward referenceable case studies

There should be a contract in place soon after the final budget is approved.

A break-down of how much of this is projected to be spent in which quarter would be helpful.

The OASIS staff also encouraged us to make use of OASIS staff where appropriate, offering the formulation that the volunteer TC members could coordinate and direct some activities and the OASIS staff could implement.

Our answers seemed to satisfy most of the concerns of the OASIS staff and a ballot has already been posted by Dee to approve the budget.

I welcome corrections and additions.

Eric

cc: Scott, Cathie, Dee

On Fri, Jul 17, 2009 at 5:36 PM, Scott McGrath <> wrote:

Are there any other kind of emergencies? ;-)

Not to worry, we are comfortable with where we are.  If you or anyone needs

to review, let me know.

All the best,

Scott...

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