Budget for Fiscal Year 2000-2001
(July 1, 2000 to June 30,
2001)
(adopted 6 June 2000)
CONTENTS
I. Executive Summary
II. Background
III. Budget for FY2000-2001
A. Budget Priorities and Issues
B. Budget Schedule A and Notes
C. Budget Exhibit 1 Staff Organization
I. Executive Summary
This document contains the budget for ICANN for FY2000-2001, commencing
July 1, 2000. The budget was approved by the Board of Directors on June
6, 2000 in accordance with the provisions of Bylaw
Article XI, section 4.
Fiscal year 2000-2001 will be the second full budget year for the corporation
and the first in which the preparation of the budget is based on significant
operating experience. The budgeted expenditures for the next fiscal
year are $4.279 million, which is $21,000 less than those proposed in
the May 1999 budget for the current year of $4.300 million. (All dollar
amounts are in US dollars.)
Revenues for support of continuing expenses are budgeted to decline
from $5.000 million to $4.314 million, which is $686,000 or 14% less.
This difference reflects the recommendations of the Task Force on Funding,
which were approved by the ICANN Board in November, 1999. In the category
of one time and special project income, there is a year to year decline
of $190,000.
The net effect of the changes in budgeted revenue and expense from
the prior year is a reduction in the budgeted contribution to the corporation's
operating reserve of $855,000, from $1.600 million to $745,000.
The Board has established a goal of creating an operating reserve approximately
equal to one year's operating expenses. The FY99-00 and FY00-01 budgets,
if fully realized, would accomplish about one-third of that objective,
with operating reserves projected to stand at $1.223 million at June
30, 2001.
The following sections of the budget contain additional background
information and details of the budget and of the budget process for
the next fiscal year.
Table 1 -- Summary of Budgeted Revenue and Expenditures
for FY 2000-2001
| REVENUE |
|
| gTLD Registries
and Registrars |
US
$ 2,140,000
|
| gTLD Registries |
250,000
|
| ccTLD Registries/Registrars |
1,496,000
|
| IP Address Registries |
428,000
|
| Accreditation Fees |
560,000
|
| Special Project
Grants |
100,000
|
| Contributions &
Other |
50,000
|
| Total
Revenue |
$
5,024,000
|
| |
|
| EXPENDITURES |
|
| Personnel |
$ 1,611,000
|
| Professional and
Technical Services |
984,000
|
| Board of Directors
and Public Meeting Expenses |
600,000
|
| Other Travel and
Meeting Expenses |
420,000
|
| Administration |
504,000
|
| Special Projects |
100,000
|
| Capital Equipment
Purchases |
60,000
|
| Contribution to
Working Capital and Operating Reserve |
745,000
|
| Total
Expenditures, Capital Equipment and Reserve Contribution |
$
5,024,000
|
II. Background
Fiscal year 2000-2001 will be the second full budget year for
the corporation and the first in which the preparation of the budget
is based on significant operating experience. During the startup fiscal
period from October 1998, through June 1999, the corporation was supported
primarily by donations. Total revenue for the eight months was $708,000,
with total expenses of $1,466,637. An operating loss of $758,767 was
carried forward to the 99-00 fiscal year. During the summer of 1999,
unsecured loans were obtained by the corporation in the total amount
of $1.025 million to offset the prior year loss and provide working
capital. Additional accounting detail on the startup period is available
at <http://www.icann.org/financials/financial-report-fye-30jun99.htm>.
A budget for fiscal year 1999-2000 was developed by the staff and posted
for public comment in April 1999. A revised version was adopted by the
Board at its Berlin meeting on May 27, 1999. Following consideration
of a mid-year financial report in February 2000, the Board further revised
the FY99-00 budget to bring it in line with current projections of revenue
and expense. See <http://www.icann.org/financials/budget-fy99-00-27may99.htm>
and <http://www.icann.org/financials/financial-report-fpe-31dec99.htm>.
In July 1999, the Board directed
the President to convene a Task Force on Funding (TFF) composed of representatives
of Domain Name and Address Registries and Registrars with the objective
of reviewing ICANN budgetary needs and making recommendations to the
Board. A final draft of the TFF report was published in October 1999,
and its recommendations were adopted by the Board at its Los Angeles
meeting on November 4, 1999. See <http://www.icann.org/committees/tff/tff.htm>.
In November 1999, ICANN executed a
series of agreements with the United States Department of Commerce
and with Network Solutions, Inc. that provide, among other things, for
specified payments to ICANN from the NSI-operated registry for the .com,
.net and .org domains, and from NSI acting as a competitive registrar
in those same domains. These payments were projected to reach a total
amount in FY99-00 of $2.250 million. This amount is included in the
schedule accompanying the TFF report and in the revised budget for FY99-00.
See <http://www.icann.org/nsi/nsi-agreements.htm>.
III. Budget for FY2000-2001
A. Budget Priorities
and Issues
General and Continuing Priorities
-
Provide timely and responsive staff support to
the policy-making activities of the Board, its Supporting Organization
Councils and other advisory bodies as needed, including policy implementation,
preparation of legal agreements, etc.
-
Meet operational commitments of service programs,
including IANA, root servers, registrar accreditation, membership,
etc.
-
Conduct an active education and outreach program
that supports public participation in ICANN policy-making activities,
including public meetings, electronic forums, hardcopy publications,
etc.
-
Carry out the general management and administrative
responsibilities of the corporation in an efficient and cost effective
manner.
Specific Priorities for FY00-01
-
Complete Board policy-making and related implementation
actions for gTLD registries and registrars.
-
Complete Board policy-making and related implementation
actions on revisions to ICP-1 dealing with delegation and administration
of ccTLDs.
-
Complete implementation work on At Large Membership,
including Board policy actions taken in Cairo, election in 2000, study
in 2001, etc.
-
Complete the work plan for improvements to the
root server system and carry out necessary implementation steps.
-
Complete work necessary to fulfill ICANN obligations
under the Department of Commerce/ICANN MOU/JPA transition agreement.
-
Conduct scheduled program reviews for Supporting
Organizations and other advisory bodies and make any revisions to
ICANN organizational structure found necessary by the Board as a result
of the reviews.
-
Complete staff recruiting for positions authorized
in the approved budget.
B. FY2000-2001 Budget
Schedule A and Notes
|
Internet Corporation for Assigned
Names and Numbers
FY00-01 Budget - Schedule A
See Accompanying Explanatory Notes
All Amounts in Thousands of U.S. Dollars
|
|
Description
|
FY99-00 Budget
Approved May 1999
|
FY99-00
12 Mos Projected Actual as of 31 Mar 00
|
FY00-01
Budget
Approved June 2000
|
| Income
to Support Continuing Expenses |
| gTLD Registrars |
-
|
$2,101
|
$2,140
|
| gTLD Registries |
-
|
250
|
250
|
| ccTLD Registries/Registrars |
-
|
1,496
|
1496
|
| IP Address Registries |
-
|
428
|
428
|
| Subtotal - Continuing
Income |
$5,000
|
$4,275
|
$4,314
|
|
| One Time
and Special Project Income |
| Accreditation Fees |
100
|
450
|
560
|
| Special Project Grants |
400
|
100
|
100
|
| Contributions & Other |
400
|
250
|
50
|
| Total Income |
$5,900
|
$5,075
|
$5,024
|
|
| Expense |
| Fulltime Staff - end of period |
14.0
|
12.3
|
15.3
|
| Personnel |
$1,600
|
$700
|
$1,611
|
| Professional & Technical Services |
1,000
|
1,025
|
984
|
| Board & Public Meetings |
850
|
320
|
600
|
| Other Travel & Meetings |
450
|
233
|
420
|
| Administration |
300
|
310
|
504
|
| Special Projects |
0
|
100
|
100
|
| Subtotal - Expense |
$4,200
|
$2,688
|
$4,219
|
| Capital Equipment Acquisition |
$100
|
$125
|
$60
|
| Total Expense
& Equipment |
$4,300
|
$2,813
|
$4,279
|
| Surplus of Income
over Expense |
$1,600
|
$2,262
|
$745
|
|
| Reserves |
| Reserve Balance - Beginning of
Year |
$0
|
-$759
|
$478
|
| Net Income (Loss) for Year |
$1,600
|
$2,262
|
$745
|
| Loans Payable - End of Year |
na
|
-$1,025
|
$0
|
| Reserve Balance
- End of Year |
$1,600
|
$478
|
$1,223
|
(1) Income. As a result of discussions with the Registry/Registrar Budget
Group, the amounts and proportionate shares of income for continuing expenses
from among the three major income sources that were recommended by the
Task Force on Funding in the fall of 1999 and approved by the Board for
the 99-00 fiscal year are changed only slightly for the 00-01 fiscal year,
with a total increase in these revenue categories of $39,000, all of which
is being contributed by the gTLD registrars.
A budgeted increase in accreditation fees of $460,000 results from a very
substantial increase in the number of registrars accredited for the .com,
.net and .org domains. There are offsetting incremental expenses associated
with administration and monitoring of accreditation agreements, which
are described below under expenses.
Under Special Project Grants, the $200,000 awarded by the Markle Foundation
for support of At Large membership startup costs will be expended in approximately
equal shares between the 99-00 and 00-01 fiscal years. Other grants anticipated
in the 99-00 fiscal year budget have not materialized, producing a year-to-year
reduction in grant income of $300,000.
Contributions are projected to decline as a result of ICANN's continuing
income sources having been established during the current fiscal year,
with a resulting year-to-year decline of $350,000.
The net of all year-to-year revenue changes is a decrease in income from
$5.900 million to $5.024 million, or $876,000.
(2) Expense. Overall expense, including equipment acquisition, is projected
to decrease, on a budget-to-budget basis, from $4.300 million to $4.279
million, or $21,000. However, there is an increase from $2.813 million
to $4.279 million, or $1.466 million, from the projected actual in the
99-00 fiscal year to the budget in the 00-01 fiscal year. This increase
reflects primarily the following factors: (1) filling of authorized staff
positions, (2) holding of four quarterly public and Board meetings rather
than three, (3) travel and meeting expenses associated with a full Board
of nineteen Directors and a full staff complement, and (4) increased administrative
costs associated with full staffing, including an increase in space rental
and office support. Additional detail on specific expense line items is
included below.
(3) Surplus and Operating
Reserve. For the 00-01 fiscal year, assuming
that revenue commitments to the continuing expenses of the corporation
from its three major constituencies are met, a contribution to the operating
reserve of $745,000 is budgeted. This amount would produce a reserve total
at the end of the year of $1.223 million, or approximately one-third of
the planned target of having one year's operating expenses covered by
reserves.
(4) Detail on Expense
Line Items.
(a) Personnel. Exhibit 1 in the following section
contains detail on current staffing levels and position descriptions.
This category includes all salary, wage, benefit and recruiting expenses.
It also includes costs of consultants and part time employees who are
filling staff positions on a temporary basis.
A number of adjustments in positions have been made as a result of operating
experience. In addition, the number of authorized staff positions in the
00-01 fiscal year's budget has been increased by one to meet increased
workload in the registrar accreditation area. The year-to-year change
in budgeted full time equivalent positions is from 14.0 to 15.3.
Assuming that currently vacant staff positions are filled at the midpoint
of existing ranges, total personnel costs are projected at $1.611 million.
This amount may vary up or down based on actual recruiting experience
in the course of the fiscal year.
(b) Professional & Technical Services. This category
includes agreements for legal services and for public affairs support.
The projected amount of $984,000 is a reduction from the 99-00 fiscal
year, which results from filling some of these requirements with inhouse
staff.
(c) Board and Public Meetings. This category covers expenses
associated with the Board's quarterly public forums and face-to-face meetings,
as well as monthly teleconferences. Included are travel, hotel, meeting
room, technical and administrative support, etc. The projected amount
of $600,000 is for four meetings and is a decrease from the original budget,
primarily as a result of the willingness of local host committees of the
quarterly meetings to significantly defray the costs of the meetings.
The low number for 99-00 fiscal year actual is a result of holding three
rather than four quarterly meetings, and of extraordinary efforts of Directors
and staff to economize in this category.
(d) Other Travel and Meetings. This category covers staff
travel in connection with job assignments, Director travel in connection
with outreach activities, as well as committee and other scheduled meetings
and events not included in the quarterly Board meetings. The budgeted
amount for 00-01 fiscal year of $420,000 reflects the net of increased
costs, increased numbers of staff, and efforts to control costs in this
category by requesting reimbursement from meeting hosts, etc.
(e) Administration. This category includes costs of operation
of the headquarters office, purchased accounting and administrative services,
insurance, debt service, utilities, computer and office systems, equipment
depreciation and network connectivity and equipment. The increase to $504,000
reflects increases in staff and associated support costs.
C. Budget Exhibit 1 --
Staff Organization
Introduction. The proposed organization
plan for ICANN for FY00-01 includes 15.3 full time equivalent positions,
an increase of 1.3 from the current year. It is Board policy that these
positions are to be filled flexibly to meet the needs of the corporation
through a combination of full-time and part-time employees, consultants,
fellowships and other means as appropriate. Positions at the Officer level,
except the President, may be filled at the Manager level depending on
the needs of ICANN and the experience of the incumbent. The position descriptions
shown here will be updated as necessary from time to time.
Several changes have been made to the staff positions over the course
of the 99-00 fiscal year as operating experience has been accumulated.
The ICANN Board recently eliminated the position of Chief Technical Officer.
This position was created in the original ICANN staffing plan to support
the work of Jon Postel, whose contributions to IANA and the Internet were
unique and irreplaceable. The Board believes that timely and effective
technical advice is available to it from the members of ICANN's Supporting
Organization Councils and from other sources and that a full-time staff
position of CTO is not necessary.
The positions of Chief Administrative Officer and Chief Financial Officer
have been combined into the single position of Business and Finance Manager,
which more closely reflects actual requirements in this area.
The position of Manager of Publications has been staffed at 0.3FTE, rather
than full time, so that ICANN/IANA may have the benefit of the extensive
experience of Joyce Reynolds, who has separate responsibilities to the
IETF as RFC Editor, a position funded by the Internet Society through
the USC Information Sciences Institute.
A new position of Registrar Liaison has been created to deal with a substantially
larger than anticipated workload in the registrar accreditation program
and will be filled with two full-time staff members.
A new position of Administrative Assistant to the IANA Manager has been
created to deal with an increase in workload in that area as well.
A Policy Analyst position has been created to provide additional support
to the Board and to the Supporting Organizations in the development of
ICANN policy issues. A position formerly identified as Technical Specialist
is now being filled as Network Administrator.
Staff Positions. The staff positions and their status in May, 2000,
is as follows:
|
Title
|
FTE
|
Incumbent
|
| President/Chief Executive Officer |
1.0
|
M. Roberts (CEO search in progress) |
| Vice President and General Counsel |
1.0
|
L. Touton |
| Senior Policy Officer |
1.0
|
A. McLaughlin |
| Manager, Technical Operations |
1.0
|
S. Wolff (recruiting in progress) |
| Manager, IANA |
1.0
|
M. Schipper |
| Manager, Systems |
1.0
|
(vacant) |
| Manager, Business and Finance |
1.0
|
D. Schroeder |
| Manager, Publications |
0.3
|
J. Reynolds |
| Policy Analyst |
1.0
|
(recruiting in progress) |
| Network Administrator |
1.0
|
J. Villaruz |
| Registrar Liaison |
1.0
|
D. Halloran |
| Registrar Liaison |
1.0
|
(new position) |
| Executive Asst to CEO/Board |
1.0
|
(vacant) |
| IANA Administrative Assistant |
1.0
|
(recruiting in progress) |
| Receptionist |
1.0
|
G. Ruiz |
| Office Assistant |
1.0
|
(recruiting in progress) |
| Total FY00-01
Budgeted Positions |
15.3
|
|
Compensation
Ranges. Staff are compensated on the basis
of competitive market conditions in Marina del Rey, California, or wherever
the position is geographically located. The amounts shown below are inclusive
of fringe benefits. The Board approved salary ranges currently are set
at the following levels:
| Officers of the Corporation |
US $ 100,000
- 300,000
|
| Managers |
40,000 - 120,000
|
| Technical and Administrative
Specialists |
35,000 - 80,000
|
| Nonexempt Administrative Positions |
20,000 - 35,000
|
Position
Descriptions.
President and Chief Executive Officer (Michael Roberts)
Performs duties as set forth in the corporate
Bylaws. Responsible for management of the corporation, recruiting
and supervising executive staff, submission and execution of annual
budget, and development and coordination of plans to carry out strategic
objectives for the corporation as established by the Board of Directors.
(Mr. Roberts has been engaged by the Board through a professional
services agreement to serve as President/CEO until the completion
of a search for a permanent Chief Executive.)
Vice President and General Counsel (Louis Touton)
Responsible to CEO and Board for legal affairs
of the corporation, serving as primary liaison to the corporation's
external counsel and to counsel for other organizations and agencies.
Advises Board of Directors, CEO, executive staff, and other groups
within the corporation on legal interpretation of proposed actions.
Reviews and approves all legal documents. Plans and directs Registrar
Accreditation and Uniform Dispute Resolution programs. As Vice President,
provides assistance to the President on projects as directed. Serves
as Secretary of the corporation. Prepares and submits official minutes
of Board meetings and related public notices and gives guidance to
secretaries of other groups within the corporation in performing their
functions.
Senior Policy Officer (Andrew McLaughlin)
Responsible to the CEO and Board for planning
and development of the corporate policy agenda. Provides for policy
staff support to the Board, executive staff, committee Chairs and
Supporting Organization Councils. Identifies needs for policy studies
and analysis, including requirements for acquisition and maintenance
of databases and other forms of information, both internal and external,
to support policy work. Supervises and coordinates corporate policy
staff and external policy consultants and resources.
Manager, Technical Operations (Suzanne Wolff - recruiting in progress)
Responsible to CEO for acquisition and operation
of corporate computer systems, software and facilities, including
local and wide area networking. Provides support to IANA staff and
functions as needed. Develops plans for and recommends external sources
of operations support as needed. Develops and implements computer
systems security plan for corporation. (Ms. Wolff has been serving
as Technical Operations Manager while on a professional services agreement
to ICANN from USC/ISI, where she will continue her work when a permanent
manager has been hired.)
Manager, Internet Assigned Numbers Authority (Michelle Schipper)
Responsible to CEO for administration of IANA
functions, including assignment of technical parameters and standards
associated with Internet Protocols, Internet Address registry numbering
and assignment matters, and liaison to TLD registry-administrators.
Manager, Systems
(vacant)
Responsible to CEO for technical architecture
functions of the corporation. Analyzes, designs and implements software
systems and applications as needed to support staff and programs of
the corporation, including policy, IANA and root server system. (To
date, requirements in this area have been fulfilled through technical
services agreements with USC/ISI and other organizations as needed.)
Manager, Business and Finance (Diane Schroeder)
Responsible to CEO for finance, accounting and
administrative functions within the corporation. Oversees preparation
and submission of internal and external financial reports, tax returns
and related documents and routine accounting schedules and reports.
Plans and supervises work of administrative staff to support needs
of Board of Directors, Officers and executive staff. Administers human
resources plan for corporation. (Ms. Schroeder has been assisting
ICANN at less than full time, but is now transitioning to full time
employment.)
Manager, Publications (Joyce Reynolds)
Responsible to CEO for corporate publications
and education programs. Designs and develops consistent editorial
standards for documents and publications. Provides support to corporate
officers and staff to meet communications requirements. Responsible
for coordination of corporate Web site, including design and organization
of content. (Position currently filled at less than full time.)
Policy Analyst
(recruiting in progress)
Responsible to the Senior Policy Officer for assignments
in planning, development and implementation of the corporate policy
agenda and related staff support to the Board, executive staff, committee
Chairs and Directors. Conducts studies as needed, including data acquisition,
analysis and presentation; formation and support ofworking groups,
and coordination with external policy groups and consultants. Performs
liaison duties to Supporting Organization Councils.
Network Administrator (Jaime Villaruz)
Responsible to Manager, Technical Operations for
planning, design, deployment and operation of corporate networks,
server communications, electronic mail and websites. Coordinates computer
security plan and related monitoring. Supports specialized requirements
for remote access, Board meetings, etc.
Registrar Liaison
(Dan Halloran)
Responsible to Vice President and General Counsel
for administration of registrar accreditation program, including compliance
issues. (A second position in this category is included in the FY00-01
budget.)
Executive Assistant to the President and Chief
Executive Officer (vacant)
Responsible to the CEO for coordination of Board,
staff and external affairs. Develops and administers Board agendas.
Oversees arrangements for regular and special Board meetings, public
forums, workshops and ICANN-related events sponsored by other organizations.
Maintains master calendar for Board members and executive staff. Provides
liaison as needed to officials and executives of other organizations
and agencies.
IANA Administrative Assistant (recruiting in progress)
Performs a variety of IANA administrative functions
requiring skills and experience acquired through formal training or
the equivalent work experience. Works under the supervision of IANA
Manager.
Receptionist (Gigi
Ruiz)
Performs a variety of reception, telephone, mail
and administrative tasks as directed by a member of the administrative
staff.
Office assistant
(recruiting in progress)
Performs a variety of office tasks as directed
by a member of the administrative staff.
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