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Audit Committee (AC) Meeting Minutes

AC Attendees: Erika Mann - Chair; Steve Crocker and Gonzalo Navarro

Invited Attendees: Judith Vasquez; two representatives from Independent Audit Firm of Moss Adams

Staff Attendees: Akram Atallah – Chief Operating Officer; Xavier Calvez – Interim Chief Operating Officer; John Jeffrey – General Counsel and Secretary; Samantha Eisner, Juan Ojeda, Diane Schroeder, and Amy Stathos

  1. Review of Prior AC Work – The AC received an overview of prior decisions and the status of the work plan, to provide the new AC members with an understanding of the work underway.  Received an explanation of the ICANN's anonymous reporting hotline, and discussed ideas to increase employee awareness and usage of the hotline.
    • Action:
      • Consider the chain of reporting for the anonymous reporting hotline for future discussion with the AC.
  2. Review of Report of Independent Auditor - The AC thanked the ICANN team and the Independent Auditors for their push to have the audit completed earlier than in prior years. The AC engaged in a discussion with the Independent Auditors to complete the required communications from the Independent Auditors.  The AC also discussed the potential to have management assess differentials between US GAAP (Generally Accepted Accounting principles and IFRS (International Financial Reporting Standards), and determine if there are additional accounting principles or reporting standards that ICANN should voluntarily apply in order to satisfy IFRS, while continuing to fulfill US GAAP requirements; the AC received an update on the historical work regarding this issue.
    • Action:
      • Management to provide report on assessment of differentials between US GAAP and IFRS, before end of 2011.
  3. Discussed Role of Audit Committee within ICANN – The AC discussed recent community comments regarding ICANN's financial profile, and discussed that ICANN's Finance Committee is involved in the oversight of ICANN's financial activities, which works in complement with the AC's role.  The AC also discussed the ICANN reserve fund.
  4. Executive session – The AC held an executive session with the Independent Auditors, with no staff present.
Domain Name System
Internationalized Domain Name ,IDN,"IDNs are domain names that include characters used in the local representation of languages that are not written with the twenty-six letters of the basic Latin alphabet ""a-z"". An IDN can contain Latin letters with diacritical marks, as required by many European languages, or may consist of characters from non-Latin scripts such as Arabic or Chinese. Many languages also use other types of digits than the European ""0-9"". The basic Latin alphabet together with the European-Arabic digits are, for the purpose of domain names, termed ""ASCII characters"" (ASCII = American Standard Code for Information Interchange). These are also included in the broader range of ""Unicode characters"" that provides the basis for IDNs. The ""hostname rule"" requires that all domain names of the type under consideration here are stored in the DNS using only the ASCII characters listed above, with the one further addition of the hyphen ""-"". The Unicode form of an IDN therefore requires special encoding before it is entered into the DNS. The following terminology is used when distinguishing between these forms: A domain name consists of a series of ""labels"" (separated by ""dots""). The ASCII form of an IDN label is termed an ""A-label"". All operations defined in the DNS protocol use A-labels exclusively. The Unicode form, which a user expects to be displayed, is termed a ""U-label"". The difference may be illustrated with the Hindi word for ""test"" — परीका — appearing here as a U-label would (in the Devanagari script). A special form of ""ASCII compatible encoding"" (abbreviated ACE) is applied to this to produce the corresponding A-label: xn--11b5bs1di. A domain name that only includes ASCII letters, digits, and hyphens is termed an ""LDH label"". Although the definitions of A-labels and LDH-labels overlap, a name consisting exclusively of LDH labels, such as"""" is not an IDN."