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From: Mike Roberts, ICANN President and CEO
To: Kanchana Kanchanasut, ccTLD Constituency Secretariat Executive Director
INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS
MEMORANDUM
January 13, 2001
Subj: Formation of Budget Group for Fiscal Year 2001-2002
The purpose of this memorandum is to begin the process of forming the consultative budget group to assist the ICANN CEO and Board in the preparation of the budget for fiscal year 2001-2002, which begins July 1, 2001. Section B provides useful background on the ICANN budget process as it currently stands. Section C describes the recently created Finance Committee. Section D presents the tentative calendar of budget related events for the next six months. Section E discusses the representation of registries and registrars on the budget group for FY01-02 and describes the nomination process.
Please note that the registry/registrar constituent groups to whom this
note is
being circulated are requested to forward their nominations to Mike Roberts
In the fall of 1999, the ICANN Board adopted the recommendations of its Task
Force on Funding (TFF), which included a number of provisions relating to the
the annual budget cycle. Included among them was the language quoted below.
These recommendations are the basis for development of the detailed annual
budget process.
Additional detail on the TFF report is available at:
http://www.icann.
org/tff/final-report-draft-30oct99.htm
All of ICANN's major budget documents, budget reports, financial statements,
and related materials are posted on the website at
http://www.icann.org/financials/.
The ICANN Board recently appointed a Finance Committee. Its charter provides
that the committee "is responsible for consulting with the President on the
annual budget process of the corporation; for reviewing and making
recommendations on the annual budget submitted by the President; and for
developing and recommending long range financial objectives for the
corporation."
The membership of the committee for 2000-2001 is Linda Wilson (Chair),
Jonathan
Cohen, Ivan Moura Campos, and Helmut Schink. Chairman Wilson and the
committee
members are currently working with the ICANN finance staff to develop a budget
agenda. Further details will be available as the budget process progresses.
Additional information about the Finance Committee is posted at
http://www.icann.org/committees/
finance/.
Diane Schroeder, ICANN's Business Manager, The ICANN Bylaws require that the President submit a proposed budget to the
Board of Directors at least forty-five days in advance of the beginning of the
fiscal year, or approximately May 15. For FY2001-2002, the Board will act on
the proposed budget at its meeting of June 4, 2001 in Stockholm, following
both
electronic and in person comments on the proposed budget. Working backward
from these end dates, it is planned that the work of the consultative budget
group will take place from approximately January 15, 2001 through May 15,
2001.
Both the Finance Committee and the Budget Group will review and make
recommendations to the ICANN Board on the proposed revisions to the ICANN
revenue structure as part of the FY01-02 budget process. The staff paper on
revenue structure is posted at
htt
p://www.icann.org/financials/staff-paper-cost-recovery-10nov00.htm.
As was the practice last year, a preliminary budget document will be
developed,
with assistance from the Budget Group, and posted for public comment at the
March ICANN meetings, which will be held in Melbourne, Australia, on March
10-13.
A tentative calendar of budget related meetings and teleconferences for the
new
fiscal year is as follows.
January 24 - Deadline for Nominations for FY2001-2002 Budget Group
January 25 - FY2000-2001 Midyear Budget Report Available
January 29 - Budget Group Teleconference #1 - agenda to be developed and
distributed in advance
February 9 - Draft of Preliminary Budget Document Distributed to Budget Group
for comment
February 19 - Preliminary FY01-02 Budget Document posted for Public Comment
March 9 - Joint Meeting of Finance Committee and Budget Group in Melbourne
March 12 - Presentation on FY01-02 Preliminary Budget at Public Forum in
Melbourne
March 29 (About) - Budget Group Teleconference #2 - agenda to be developed
April 27 (About) - Draft of Proposed Budget distributed to Budget Group for
comment
May 7 (About) - Budget Group Teleconference #3 - final comments on proposed
budget before posting
May 14 - Proposed Budget for FY01-02 posted for Public Comment
June 1 - Joint Meeting of Finance Committee and Budget Group in Stockholm
June 3 - Presentation on FY01-02 Proposed Budget at Public Forum in Stockholm
June 4 - ICANN Board adopts FY01-02 Budget
July 1 - FY01-02 Budget Year Commences
In the budget process for FY00-01, the current fiscal year, the membership of
the budget group followed that of the TFF, with seats distributed as follows:
Address Registries - Participation by all three regional address registries
Verisign .com/net/org Registry - one representative
ICANN .com/net/org accredited registrars - three representatives [Some of
these registrars may be accredited to additional registries in the near
future.]
ccTLD registries/registrars - three representatives
For FY01-02, there will be added to this list two representatives from among
the seven new TLD registries - one from a worldwide commercial registry and
one
from a noncommercial sponsored registry.
Individuals nominated to the budget group must hold a senior management
position in a registry or registrar organization and additionally must have
sufficient budget and financial experience in their background to participate
effectively in the work of the group. They also must be given adequate
time by
their employer to study the working materials distributed to and possibly
developed by the budget group as well as to participate in the budget group
teleconferences and at least one of the face to face meetings. The out of
pocket expenses of budget group members are borne by the participating
organizations. It is also expected that, to the extent required, the
representatives from a given group of registries or registrars will consult
among their peer organizations to solicit additional comments and perspectives
on the development of the budget so that the budget group as whole, as well as
the Finance Committee and the Board, have the benefit of considered advice
from
all those who directly provide financial support to ICANN.
B. Background
"B. Improvements to ICANN Budget Process
The TFF believes that ICANN's budget process needs to be improved in future
iterations to give the entities providing the funds -- the domain name and
address registries and registrars -- a formal role in the budgeting process.
The goal of the Task Force's recommendations in this area is greater
accountability, predictability, participation, and transparency in the
budgeting process.
(2) The TFF recommends that the budget proposed by the President at the outset
of the budget process should be directly transmitted via email to each name
and
address registry and registrar for review and comment, with adequate time for
study and response.
(3) The TFF recommends that the budget process include a meeting among members
of the ICANN Board and representatives of the IP address registries and domain
name registries and registrars to review the proposed budget in detail and to
seek consensus on areas of controversy.
(4) The TFF recommends that ICANN provide the IP address registries and domain
name registries and registrars with a quarterly update on ICANN's financial
situation, including figures showing the degree to which ICANN's revenues are
exceeding or falling short of the approved budget.
(5) In addition to the entities directly contributing the funds to ICANN's
cost-recovery program, the rest of the ICANN community must have a fair
opportunity to review the proposed budget and participate in the
consensus-development process. The Task Force recommends that ICANN require
that the proposed annual budget be placed on the agenda for at least one
Public
Forum prior to adoption."
C. ICANN Finance Committee
D. Budget Calendar for FY2001-2002
E. Nomination of Budget Group Members
© ccTLD Constituency
Page updated : 2001-01-28 16:43:50