Dr. Deutsch, Chairman, called the nineteenth meeting of the INCITS FBC to order at 2:00 PM on Friday, December 15, 2006.

The FBC Chairman reviewed the members in attendance.

There are currently 7 organizations with voting membership and 1 organization with advisory membership on the FBC.  Quorum is 4.  Attendance at this meeting is shown in the table below.

The draft minutes of the October 2, 2006 FBC meeting were approved as presented at this meeting by unanimous consent (Wright/Pritchard).  

The following revisions to the draft agenda were noted:

• agenda item 3.2 - delete document in061199 and add document in061422
  
  
• agenda item 3.3 - add document in061423
  
  
• add new agenda item 3.10 Financial Policies Section of the RD-1 - 2 unnumbered emails from Mr. Hughes and the referenced attachment will be discussed 

The agenda was approved as amended by unanimous consent (Michael/Hughes).

The action item list was reviewed, and it was reported that action items 1 through 5 were completed.  Action items 6 through 10 were posted for consideration at this FBC meeting and would be carried to future meetings as needed.

3.2 Financial Report

Mr. Morris reported that the only change since the October meeting is the addition of a footnote explaining the change in the starting reserve number due to the proper allocation of funds to SC Plenary accounts.  The FBC expressed a preference for the footnote explanation in a stand alone document.

Action Item:  The INCITS Secretariat will prepare a stand alone document that describes the unbundling of reserves from the 2006 budget to the 2006 actuals.

In response to past inquiries on the disparity in investment income between the INCITS and JTC 1 Reserve accounts given the fact that they have similar levels of reserves, Mr. Morris reported that the JTC 1 Reserves account realizes investment income only on reserves while the INCITS account realizes investment income on both its reserves and income taken in during the course of the year.  The FBC participants requested an explanation of the ITI investment strategy since the projected investment revenues appear low in relation to other places the FBC members participate.

Action Item:  The INCITS Secretariat will seek explanation of the ITI investment strategy.

The FBC discussed the proposed 2007 FBC timeline and agreed that the FBC would have the 2008 budget developed for consideration at the September 2007 EB meeting as input into the October 2007 ITI Board meeting.

3.4 History of the JTC 1 Reserve Account

Mr. Jameson reviewed his history of how the JTC 1 reserve account came into being and was moved from ANSI to ITI.  The following motion was addressed:

(Jameson/Hughes)

The FBC recommends to the INCITS Executive Board that that the PBC be instructed to incorporate a reference to document in060759 in the RD-1 as a history of the JTC 1 Reserve account.

Vote on the motion:  unanimous consent

The motion passed.

Action item:  The FBC report to the January 2007 EB meeting will include the recommendation that PBC be instructed to incorporate a reference to document in060759 in the RD-1 as a history of the JTC 1 Reserve account.

3.5 Tiered Membership Scale (EB a06.145)    

The FBC noted that the topic of a tiered membership scale was based on an SPB Business Model activity recommendation that was remanded at the October 2006 EB meeting to the FBC for further consideration:

Recommendation 003:

Related to TC membership, INCITS should consider a tiered membership scale that would:

• allow smaller members to not pay the same fees as the larger organizational entities
  
  
• strengthen outreach to academia
  

Following discussion, Dr. Deutsch noted that he heard no support for allowing smaller members to pay reduced fees, however, there was some support for offering a reduced fee for bona fide academic institutions (and possibly 501-C3's) for possible inclusion in the FBC service fee recommendations made for consideration at the April 2007 EB meeting.

3.6 Criteria to Demonstrate Financial Viability and Escrow Requirements for Non-INCITS Funded International Secretariats (EB a06.147)

The FBC noted that the topic of criteria to demonstrate financial viability and escrow requirements for non-INCITS funded international Secretariats was based on a modified SPB Business Model activity recommendation that was remanded at the October 2006 EB meeting to the FBC for further consideration:

modified Recommendation 005:

The FBC is asked to develop specific criteria to demonstrate financial viability and escrow requirements that non-INCITS funded international Secretariats should meet.

The FBC discussed this recommendation.  It was noted that INCITS was not a signatory on the MoU between ANSI and INCITS-recommended external Secretariats.

Due to time constraints, discussion on this topic was not completed and Dr. Deutsch noted that it would be carried to the next FBC meeting.  FBC members were invited to provide written contributions.

3.7 Financial Implications and Plans Associated with Funding a US-hosted JTC 1 Plenary (EB a06.153)

Due to time constraints, this item was not addressed and will be carried to the next FBC meeting.

3.8 Consideration of 2008 Budget Input from the October 2006 EB Meeting

• Incorporation of TC/TG Service Fee Structure Approved at October 2006 EB Meeting (EB a06.143)
• Budget Viable Technology Infrastructure (EB a06.148)
  

The FBC agreed that the following items would be the focus of the February 16, 2007 FBC meetings as concrete recommendations would need to be developed in advance of the April 2007 EB meeting:

• Incorporation of TC/TG Service Fee Structure Approved at October 2006 EB Meeting
• Budget Viable Technology Infrastructure

Action Item:  In advance of the February 2007 FBC meeting, the INCITS Secretariat will provide compiled cost data for consideration in planning the 2008 budget.

3.9 Issues with Possible Future Financial Impacts

Dr. Deutsch noted that this document contains a standing list that is updated when requested by the FBC.
   

3.10 Financial Policies Section of the RD-1

Due to time constraints, this item was not addressed and will be carried to the next FBC meeting.

• February 16, 2007 - 12:00 PM - 3:00 PM Eastern / 9:00 AM - 12:00 PM Pacific
• March 1, 2007 - 12:00 PM - 3:00 PM Eastern / 9:00 AM - 12:00 PM Pacific

1. The INCITS Secretariat will prepare a stand alone document that describes the unbundling of reserves from the 2006 budget to the 2006 actuals.
   
   
2. The INCITS Secretariat will seek explanation of the ITI investment strategy.
   
   
3. The FBC report to the January 2007 EB meeting will include the recommendation that PBC be instructed to incorporate a reference to document in060759 in the RD-1 as a history of the JTC 1 Reserve account.
   
   
4. In advance of the February 2007 FBC meeting, the INCITS Secretariat will provide compiled cost data for consideration in planning the 2008 budget.