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Minutes | Board Finance Committee (BFC) Meeting

Posted 19 June 2015

BFC Attendees: Cherine Chalaby (Chair), Chris Disspain, Asha Hemrajani, Bruno Lanvin, and Gonzalo Navarro

Other Board Member Attendees: Rinalia Abdul Rahim, Markus Kummer, and Bruce Tonkin

ICANN Executive and Staff Member Attendees: Megan Bishop (Board Support Coordinator), Michelle Bright ((Board Support Content Manager), Xavier Calvez (Chief Financial Officer), John Jeffrey (General Counsel & Secretary), Vinciane Koenigsfeld (Board Support Content Manager), Elizabeth Le (Senior Counsel), Amy Stathos (Deputy General Counsel)

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. Financials – The BFC reviewed the FY15 Budget, which includes total revenue of US$158 million for the year and total operating expenses of US$141 million. There is a contingency of US$3.4M of which US$2.8M has been utilized. The operating fund increased by US$3.1M during Q3 due to cash collected from contracted partiers, reimbursement from the New gTLD Program, and disbursements to employees and vendors.
  3. Minutes – The BFC approved the minutes from the 12-13 March 2015 meeting.
  4. FY16 Budget – The BFC reviewed the next steps of the FY16 Budget approval process. The public comment period ends 1 May 2015. From 1 May to 8 May, members of the BFC will attend a call with each community-based group to listen to their comments. The BFC discussed which committee member would attend each call. Thereafter, staff will draft responses to each of the comments received and submit to the BFC for review. The BFC specifically discussed the fact that while it is possible that not all suggested changes will be made and not all additional requests for budget allocation will be granted, all of the comments will receive a response, along with a rationale for the decisions made. It is anticipated that the final responses will be posted by early June. It is further anticipated that, as scheduled, the Budget will be presented to the Board at ICANN 53 for approval.
  5. Update on Q3 Stakeholders Call – Staff provided the BFC with an update on the financials discussion on the Q3 Stakeholders call.
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."