Minutes | Board Audit Committee (BAC) Meeting
BAC Attendees: Sarah Deutsch (Chair), Avri Doria, Merike Käo, Akinori Maemura, Mandla Msimang, and Ihab Osman
ICANN Organization Attendees: Michelle Bright (Board Content Coordination Director), Xavier Calvez (SVP, Planning and Chief Financial Officer), Franco Carrasco (Board Operations Specialist), Liz Le (Associate General Counsel), Brett Peterson (Director Accounting), Shani Quidwai (Sr. Director Finance), and Amy Stathos (Deputy General Counsel)
Invited Guests: Representatives from independent auditor firm BDO, LLP and the Independent Financial Advisor to the BAC
The following is a summary of discussions, actions taken and actions identified:
- BAC Workplan – The BAC reviewed the Committee workplan, which is on target.
- Presentation by Independent External Audit Firm – The BAC received a presentation from representatives of independent external audit firm, BDO, LLP, in support of ICANN org's selection of ICANN's FY20 independent audit firm. One role of the BAC is to perform oversight, by delegation from the Board, of recommending to the Board which independent audit firm ICANN org should use each year. BDO provided the BAC with information regarding its proposed FY21 audit services, including the planned scope, anticipated timeline, and the implementation of a new revenue recognition standard for FY21. BDO also explained new leasing standards that will come into effect in FY22. The BAC also explained how the audit will be conducted virtually and how the adequate security measures will be taken to protect the security and confidentiality of the information exchanged between ICANN org and BDO. BDO left the meeting following their presentation.
Selection of the FY21 Independent Auditor Firm - The BAC discussed ICANN org's recommendation that BDO be appointed as ICANN's independent audit firm for the FY21 audit. The Committee also discussed the cadence by which audit firms and audit partners are rotated, and agreed to continue to look at best practices in this regard, including a potential cadence for conducting competitive bidding processes in the future. Following discussion, the BAC approved a recommendation to the Board to appoint BDO as ICANN's independent audit firm for the FY21 audit.
- ICANN org to revise the proposed Board materials to reflect to BAC's discussion.
- ICANN org to add a BAC meeting to the workplan to discuss best practices re: audit firm and audit partner rotation.
Published on 21 April 2021