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Audit Committee (AC) Meeting Minutes

AC Attendees: Erika Mann - Chair; Bill Graham; Gonzalo Navarro and Judith Vazquez

Other Board Attendees: Rod Beckstrom; Steve Crocker

Staff Attendees: Akram Atallah – Chief Operating Officer; Xavier Calvez – Chief Financial Officer; John Jeffrey – General Counsel and Secretary; Samantha Eisner, Amy Stathos and Alina Syunkova

  1. Minutes – The AC approved the minutes of its prior meeting in March 2012.
  2. Review of BAC Workplan – The AC received a report on the status of the workplan, noting no major changes since the prior discussion of this item. The AC confirmed that it would be entering executive session with the departing President and CEO in line with its workplan. The AC also discussed the idea of a New gTLD Program-specific controller and ledgers to assure the proper controls over the Program funds.
  3. Status of Work of Independent External Auditor – The AC received a report on the regular audit activities being performed by the Independent Auditor, including the completion of interim field work in April as well as the systems review underway. Staff also reported on the work regarding the revenue and expense recognition policy for the New gTLD Program, which will be shared with the Independent External Auditor to allow for comment. The AC queried which committee would be appropriate for consideration of review of value for money issue related to TAS/Digital Archery systems, as well as review of the causes of the recent determination that the EAG aspect of reporting was not fit for the purposes that it was used. The CFO explained the challenges identified with the EAG and noted the work going forward to provide improved reporting.
    • Action:
      • AC to discuss potential for call, if needed, with Independent External Auditors prior to the completion of final field work.
  4. Internal Controls Status Update – The AC received a report on the internal controls work ongoing within the organization, including documentation of the accounts payable and travel expense processes, as well as plans for documentation of the budget process and treasury process. Staff also reported on the ongoing development of a policy for New gTLD revenue and expense recognition.
  5. Executive Session – The AC convened an Executive Session with the departing President and CEO without 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."