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Minutes | Board Finance Committee (BFC)

BFC Attendees: Sébastien Bachollet, Cherine Chalaby (Chair), Chris Disspain, George Sadowsky, and Mike Silber

BFC Member Apologies: Bruno Lanvin

Other Board Member Attendees: Steve Crocker

ICANN Executive and Staff Member Attendees: Megan Bishop (Board Support Coordinator), Xavier Calvez (Chief Financial Officer), Yu-Chang Kuek (Vice President & Managing Director - APAC), Elizabeth Le (Senior Counsel), Karine Perset (Sr. Director of Board Support), Amy Stathos (Deputy General Counsel), and Nick Tomasso (VP, Meeting Operations & International Real Estate)

The following is a summary of discussions, actions taken and actions identified:

  1. BFC Schedule – The BFC discussed its schedule, which is on track as planned.
  2. FY14 Budget – The BFC reviewed the FY14 Budget, which is showing a total revenue of US$200 million for the year and total operating expenses of US$150M. There is a contingency of US$3.7M and a change in net assets of US$46M.
  3. Contingency Fund – The BFC reviewed the status of the FY14 Contingency Fund. The BFC was advised that US$1.5 million of the US$3.7 million that had been allocated to the contingency fund has been used, leaving a balance of US$2.2 million.
  4. Operating Fund – The BFC discussed the status of the operating fund, noting that the operating cash on hand has increased by US$6.1 million from December 2013 to March 2014 mainly as a result of: (i) reimbursement of historical development costs from the New gTLD Program; (ii) reimbursement of direct and allocated staff costs to the New gTLD Program; and other net variances.
  5. Reserve Fund – The BFC reviewed the status of the reserve fund, which is currently set for a 12-month period. The BFC was advised that the fund balance is currently $US82.3 million.
  6. New gTLD Cash/Investments – The BFC noted that the new gTLD funds cash has increased during the third quarter as a result of the transfer from the New gTLD Investments account for disbursement purposes, repayment of historical development costs to ICANN operations, repayment of direct and allocated staff costs and disbursements for the costs of evaluation (including payments to vendors and refunds). The BFC further noted that new gTLD investments have decreased as a result of the US$21M transfer to the New gTLD operating cash account partially offset by realized and unrealized gains of $0.4
  7. Recommendation to the Board for Approval to Contract for February 2015 ICANN Meeting – Staff briefed the BFC on the proposal on Marrakech, Morocco as the location for the February 2015 ICANN 52 Public Meeting. The BFC noted that the cost of the proposed venue for the February 2015 Public Meeting is comparable to the venue costs for past ICANN Public Meetings. The BFC approved a motion recommending that the Board delegate to the President and CEO or his designee the authority to take all necessary actions to hold the February 2015 ICANN 52 Meeting in Marrakech, Morocco.
    • Actions – Staff to submit proposed resolution for Board consideration at the next Board meeting in London.
  8. Memorandum of Agreement – Budget Approval Request – Staff briefed the BFC on the proposal to approve a budget request to contract for the development of a Center of Excellence for research and development in the areas of DNS and DNS security. The BFC requested additional information including documentation of the disbursement process and a cost breakdown. The BFC continued its consideration of the agenda item to its next meeting London.
    • Action – Staff to revise proposed recommendation and submit to BFC for consideration at the next BFC meeting.
  9. Suggested Agenda Items for BFC Meeting at ICANN 50 – The BFC discussed the agenda for its next meeting in London during the ICANN 50 Public Meeting.

Published on 22 June 2014

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."