Path: utzoo!attcan!uunet!seismo!rick
From: rick@seismo.CSS.GOV (Rick Adams)
Newsgroups: news.admin
Subject: Re: Commercial Newsfeeds (Was: something else)
Summary: Don't confuse gross income with net income.
Message-ID: <44411@beno.seismo.CSS.GOV>
Date: 8 Sep 88 18:05:39 GMT
References: <6327@gryphon.CTS.COM>
Organization: Center for Seismic Studies, Arlington, VA
Lines: 31

> Given what UUNET charges, and how many site they feed and their costs to
> do what they do, by some (admittedly) wild asses guessing, there is a
> fair amount of money involved here. Now, I'm not casting dispersions
> on anyones honesty, but since nobody I know has seen a balance sheet
> the impression remains.

Legally, UUNET is part of USENIX. All of the UUNET money is in bank
accounts owned by USENIX (separate from the main accounts for
accounting convenience, but still owned by USENIX)

The USENIX Board of Directors has a legal responsibility to make sure
that the money is properly spent. They get a balance sheet every
quarter (and I assure you that they look at it closely!). Also, given
the IRS Tax Exempt status of USENIX, the IRS would take a very dim view
of UUNET (i.e. USENIX) making a true profit.

In addition, there will probably be a formal audit of the UUNET
finances sometime within the next six months. (A formal audit on a
regular basis is a normal part of any business operation.)

For the curious, UUNET gross income is about $50,000 per month.
Expenses are about $49,000 per month (The major expenses are about
$20,000 to Tymnet, about $15,000 to SPRINT and about $5,000 for the
computer loan.) Expenses currently do NOT include any salary money or
rental of office space.  (These expenses will start this fall.)

At the current "profit" rate of $1,000 per month it would take many
years to pay back the money that was lost during the startup months of
operation.

--rick