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Audit Committee (AC) Meeting Minutes

AC Attendees: Erika Mann - Chair; Bill Graham; Olga Madruga-Forti, Gonzalo Navarro and Judith Duavit Vazquez

Other Board Attendees: Steve Crocker

Staff Attendees: Akram Atallah – Chief Operating Officer; Xavier Calvez – Chief Financial Officer; John Jeffrey – General Counsel and Secretary; Megan Bishop, Michelle Bright, Samantha Eisner, Ken Redhead, Diane Schroeder, and Amy Stathos

  1. Update for New Board Member:  The AC provided a review of its recent work, beginning with a review of the AC Charter, discussing the AC's work with the independent auditor, and identifying the recent topics that have been under consideration by the committee. The recent topics include developing a robust internal control framework, as well as the development of a referential matrix to use a tool for discussing financial reporting. The AC has also discussed the rotation of auditors, issues of how to disclose the New gTLD Program in the financial statements, as well as the development of a revenue and expense recognition policy. The AC has also addressed issues related to the reserve fund level, though it is not a primary AC duty. The AC discussed the International Financial Reporting Standards (IFRS) that, though not directly applicable to ICANN, are being considered as a referential model for developing financial reporting efforts.
    • Action::
      • Staff to keep the AC updated on it work in analyzing the IFRS, and how they might differ or be inconsistent from how and what ICANN must report.
  2. Plan for Independent Audit for FY13: The AC agreed to recommend that the Board authorize staff to engage Moss Adams as the independent auditor to perform the FY13 audit.
    • Action::
      • Staff to forward recommendation to the Board.
  3. Executive Session: The AC convened an executive session with ICANN's new Controller without additional 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."