ICANN

ICANN | Proposed FY2000-2001 Budget | 4 May 2000

Proposed Budget for Fiscal Year 2000-2001

(4 May 2000)

ICANN is in the process of formulating its budget for the 2000-2001 fiscal year. A draft budget developed through a consultative process with members of ICANN constituencies was posted on the ICANN web site on March 6 and discussed at the ICANN public meeting in Cairo on March 9. After revisions were made through additional consultation with members of the ICANN community, the proposed budget was discussed by the ICANN Board at its monthly meeting on May 4 and approved for posting for public comment.

The Board invites comments on the revised budget and has established a Public Comment Forum for that purpose. Comments should be made by June 1, 2000, so that they reach the Board in time for its consideration of adopting a budget at its June 2000 meeting.

Click here to enter the Public Comment Forum on the Proposed FY 2000-2001 Budget

Proposed Budget for Fiscal Year 2000-2001
( July 1, 2000 to June 30, 2001 )

CONTENTS

I. Executive Summary

II. Background

III. Proposed Budget for FY2000-2001

A. Budget Priorities and Issues
B. Budget Schedule A and Notes
C. Budget Exhibit 1 Staff Organization

Appendix A - Budget Process for FY 2000-2001

Appendix B - Midyear Review of FY 1999-2000 Budget

Appendix C - Budget Issues for FY2000-2001

I. Executive Summary

This document contains the proposed budget for ICANN for FY2000-2001, commencing July 1, 2000, which was presented by the President to the Board of Directors on May 4, 2000 in accordance with the provisions of Bylaw Article XI, section 4. The proposed budget has been developed by the ICANN staff through a consultative process with members of ICANN constituencies. An earlier version was posted on the ICANN web site on March 6 and presented at the Cairo public meeting on March 9. The proposed budget was discussed by the ICANN Board at its monthly meeting on May 4 and approved for posting for public comment. The Board will consider public comments, make further revisions to the budget if needed, and adopt the FY00-01 budget at its scheduled meeting in June 2000.

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 proposed expenditures for the next fiscal year are $4.279 million, which is $21,000 less than those proposed in the original budget for the current year of $4.300 million. (All dollar amounts are in US dollars.)

Revenues for support of continuing expenses are proposed 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

Creation of this level of reserve requires that budgeted revenue targets in both the current and the next fiscal year are achieved, and assumes that currently outstanding short term loans in the amount of $1.025 million are repaid on schedule in August, 2000. The transition status of ICANN and the slow progress toward reaching agreements with major ccTLD managers and with IP Address Registries makes the realization of the budgeted surplus and related reserve increments subject to some doubt. In the event that assurances from ccTLD and IP Address Registry managers with respect to their contributions to ICANN are not forthcoming, the proposed budget will require revision.

The following sections of the proposed budget document contain additional background information and details of the budget and of the budget process for the next fiscal year.

Table 1 -- Summary of Proposed 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 current 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/en/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 are projected to reach a total amount in the current year 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. Proposed Budget for FY2000-2001

A. Budget Priorities and Issues

Now that ICANN is working within an established budget process, the priorities for each new budget period will be a mix of items carried forward from the current year as well as new matters. The following list for next year, prepared by the ICANN staff, is non-exhaustive and is intended to serve as a basis for public comment. A list of the current year's priorities, and a midyear report on their status, is contained in Appendix B.

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. Proposed FY2000-2001 Budget Schedule A and Notes

Internet Corporation for Assigned Names and Numbers FY00-01 Proposed 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 Proposed Budget as of 4 May 00
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 this fiscal year are changed only slightly for the next 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 current and next fiscal year. Other grants anticipated in the prior 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 current fiscal year to the proposed budget in the next 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. The originally budgeted surplus of $1.600 million for the current fiscal year was earmarked by the Board to offset an initial operating loss of $759,000, experienced in the startup period ending 6/30/99, and to provide working capital and a down payment on an operating reserve for the corporation. The current year surplus is now projected at $2.262 million as of June 30, 2000, provided that all budgeted revenue is received. As noted above in the Executive Summary, delays in reaching agreements with ccTLD and IP Address Registry managers have raised concern that the budgeted revenue from those sources may not be received, thus jeopardizing the corporation's working capital position and threatening its ability to repay outstanding short term loans, which are due in August, 2000.

For the next 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 next 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 current 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 current 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 next 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 past 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	(proposed 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 proposed for inclusion 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.

Appendix A -- Budget Process for FY 2000-2001

Included in the October 1999 report of the Task Force on Funding are the following two recommendations:

"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.

" 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."

As noted above, these recommendations have been adopted by the Board and are being used to guide the staff in developing the next fiscal year's budget. The following specific actions are planned:

Review the financial report for the first six months of this fiscal year and adopt a revised current year budget that becomes the base for budget planning for next year. (This action was completed by the Board at its February 10 meeting.)
Convene the consultative group on the budget process called for in the TFF Report, which was approved by the Board in Los Angeles. (This action is largely completed, with participation from the Name and Address Registries and Registrars.)
Prepare a staff document on budget priorities and proposed revisions from this fiscal year to next, and review it with the consultative group, the Board, and with the public in Cairo. (A budget staff paper was prepared and posted for public comment in advance of the Cairo meeting. A presentation on the budget was also made as part of the public meeting in Cairo.)
Publish the proposed FY00-01 budget on the ICANN Web site in May for public comment.
Adopt the budget at the June Board meeting, following any revisions resulting from consideration of public comments.

Appendix B -- Midyear Review of FY-1999-2000 Budget

The May 1999 budget for FY99-00, the current fiscal year, established the following goals and related resource commitments:

completion of ICANN organizational arrangements, such as the seating of the permanent members of the Board of Directors and recruiting of a permanent President and Chief Executive Officer.
completion of contractual arrangements with registry-administrators.
continuing accreditation of registrars for the .com, .net and .org domains.
study, recommendations and implementation of policy decisions concerning domain names, trademarks and the related provisions of the WIPO study.
study, recommendations and implementation of policy decisions concerning expansion of the Top Level Domain (TLD) name space.
study, recommendations and implementation of updated arrangements for Internet root servers.
review and adoption, after public comment and possible revision, of recommendations received from ICANN Support Organizations and Advisory Committees.

At midyear, the following progress toward these goals has been made:

Nine Directors selected by Supporting Organizations were seated in November. An At Large Membership implementation project has been created and will have begun accepting applications for At Large Membership by the time of the Cairo meeting. The Board has set an agenda item for the Cairo meeting to take additional policy actions on At Large Membership and elections. The Board has established a Search Committee for a permanent President and Chief Executive Officer.
The Board has completed agreements with Network Solutions covering its operation of the registry for .com, .net and .org, and its accreditation as a competitive registrar for the same domains. The ICANN staff is in discussions with operators of the IP Address Registries and with operators of ccTLD Registries/Registrars on agreements with those organizations.
ICANN continues an active accreditation program for .com, .net and .org, with more than 100 companies having successfully completed the accreditation process.
Following adoption of a Uniform Dispute Resolution policy in August, 1999, ICANN has implemented a program that currently has three providers of dispute services and more than fifty disputes currently in process before panels convened under the ICANN UDRP policy and procedures.
A Working Group of the ICANN Domain Name Supporting Organization (DNSO) has produced a status report and recommendations on gTLD issues for the DNSO Names Council to consider in the near future. The ICANN Board has scheduled a study session on gTLD issues at its forthcoming Cairo Board meeting.
The ICANN Root Server System Advisory Committee has met several times and made recommendations to the Board on technical improvements to the architecture of the root server system. These recommendations are supported by the operators of the thirteen root servers and are in the process of implementation. ICANN staff, the root operators and the U.S. Department of Commerce are working together to establish a work schedule and timeline for policy, administrative and technical changes to the root server system to meet the objectives established by the U.S. Government in the DNS White Paper.

Significant actions taken by ICANN Supporting Organizations and Advisory Committees include:

The DNSO Names Council, following study of a referral to it by the ICANN Board of recommendations contained in the WIPO report on trademarks and domain names, recommended to the Board the adoption of principles related to a uniform dispute resolution policy. It has under further study other portions of the WIPO report dealing with famous names and gTLD expansion.
The Address Council has been organized under the terms of the ASO Memorandum of Understanding and intends to hold its first face to face meeting in May 2000.
The Protocol Council has been organized under the terms of the PSO Memorandum of Understanding and does not currently have a face to face meeting scheduled.
The Independent Review Advisory Committee has completed its work and the ICANN Board is expected to implement its recommendations at the Cairo meeting.
The Audit Committee has completed work on an Audit Committee charter and recommended its adoption by the Board at the Cairo meeting.
The Reconsideration Committee has met several times to consider requests for reconsideration of Board actions and forwarded recommendations on the disposition of a number of requests to the Board. The substance of the recommendations and the related Board actions are documented in the minutes of several Board meetings which are posted on the ICANN Web site.
The Government Advisory Committee has met several times and recently forwarded to the Board a document concerning Principles for Delegation and Administration of ccTLDs. The Board will consider the GAC Principles as part of its Cairo agenda item dealing with ccTLD issues.
Following a recommendation of its original Membership Advisory Committee, which has completed work and been disbanded, an At Large Membership Implementation Task Force is in the process of being formed and will advise the staff and Board on remaining issues concerning the structure of At Large Membership, elections, voting, outreach, etc.

Appendix C -- Budget Issues for FY2000-2001

The following issues, presented as questions, are among those which the Board and staff have been considering in the development of the budget for FY00-01. Public comment on these issues, and others not listed, is encouraged.

Q. Does the preliminary budget properly support achievement of the basic purposes of ICANN, which are stated in the Articles of Incorporation as:

"... promoting the global public interest in the operational stability of the Internet by (i) coordinating the assignment of Internet technical parameters as needed to maintain universal connectivity on the Internet; (ii) performing and overseeing functions related to the coordination of the Internet Protocol ("IP") address space; (iii) performing and overseeing functions related to the coordination of the Internet domain name system ("DNS"), including the development of policies for determining the circumstances under which new top-level domains are added to the DNS root system; (iv) overseeing operation of the authoritative Internet DNS root server system; and (v) engaging in any other related lawful activity in furtherance of items (i) through (iv)."

Q. Do the proposed general and specific budget priorities for FY00-01 relate appropriately to the purposes of ICANN? Since much of ICANN's ability to meet the stated priorities is based on staff resources, is the projected staffing of 15.3 full time equivalent positions the appropriate level of staff? For what reasons should the number of ICANN staff positions be increased or decreased?

Q. Up to the present time, it has been assumed that ICANN's Supporting Organizations will conduct their activities without financial support from the central budget, relying instead on donated and volunteer services. Is this a reasonable assumption? If the SO's are to receive financial support in the annual budget, what means should be used to establish appropriate support levels and what income sources should be used to cover the related expense?

Q. Up to the present time, the operation of the thirteen Domain Name System root servers has been subsidized by the organizations hosting the machines. Should this volunteer system be continued in the future, or should some provision be made in the ICANN budget for partial or full support of root server operating costs?

Q. Since ICANN's charter is a global one, the Board has scheduled its quarterly meetings, including public forums, to rotate among the five major geographic regions defined in the Bylaws. Should this practice be continued? To what extent should webcasting and other electronic outreach techniques be continued or expanded?

Comments concerning the layout, construction and functionality of this site
should be sent to webmaster@icann.org.