Minutes | Board Finance Committee (BFC) Meeting 22 January 2016

Published 4 March 2016

BFC Attendees: Cherine Chalaby (Co-Chair), Ron da Silva, Chris Disspain, Asha Hemrajani (Co-Chair), and Markus Kummer

BFC Member Apologies: George Sadowsky

ICANN Executive and Staff Member Attendees: Susanna Bennett (Chief Operating Officer), Megan Bishop (Board Operations Coordinator), Xavier Calvez (Chief Financial Officer), Melissa King (Vice President, Board Operations), Vinciane Koenigsfeld (Board Operations Content Manager), Elizabeth Le (Senior Counsel), Amy Stathos (Deputy General Counsel), and Theresa Swinehart (Senior Vice President, Multistakeholder Strategy and Strategic Initiatives)

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The following is a summary of discussions, actions taken and actions identified:

1. USG Stewardship Transition – FY16 Expenses and Funding – Staff explained that the Board previously approved that the USG transition project would be funded from the reserve fund up to a budgeted amount of US$7 million for FY16. Staff further explained that the total amount of costs for the USG transition project now exceed the originally budgeted amount due, in large part, to the additional costs of external independent legal counsel that was put in place at the request of the CCWG and the CWG. The actual costs incurred during the first five months of FY16 were US$7 million, including independent legal costs of approximately US$4 million. It is anticipated that significant additional costs will be incurred during the remaining seven months (December through June) of FY16, including significant further expenditures for independent legal advice. The BFC discussed the estimated additional costs and agreed to set up a meeting with the Co-Chairs of the CCWG and the CWG to discuss the funding of the transition project, estimated independent legal costs for the remainder of FY16, and suggestions for cost control opportunities. The BFC also requested further detail from staff regarding the estimated expenditures affiliated with the transition project, and discussed the need to determine how the reserve fund will be replenished.

   • Actions:

     • Members of the BFC to reach out to the Co-Chairs of the CCWG and the CWG to set up a meeting with the BFC to discuss the funding of the transition project, estimated independent legal costs for the remainder of FY16, and suggestions for cost control opportunities.

     • Staff to provide further detail regarding the estimated costs for the transition project for the remaining seven months (December through June) of FY16.