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Minutes | Board Finance Committee (BFC) Meeting

Published 11 September 2015

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

ICANN Executive and Staff Member Attendees: Megan Bishop (Board Support Coordinator), Michelle Bright ((Board Support Content Manager), Xavier Calvez (Chief Financial Officer), Becky Nash (VP of Finance), Ashwin Rangan (Chief Innovation and Information Officer), and Amy Stathos (Deputy General Counsel)

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

  1. BFC Schedule – The BFC reviewed the FY15 schedule, which is on target. The BFC also reviewed a draft FY16 schedule. Staff noted that the draft FY16 schedule includes a review of the second year of the five-year operating plan in light of the progresses of the first year.

  2. Financials – The BFC reviewed the FY15 Budget, which is showing a total revenue of US$158 million for the year, a total operating expenses of US$141 million, and a change in net assets of US$18 million. The operating fund increased by US$3.6 million during the month of April due to cash collected from contracted parties and disbursements to employees and vendors. The reserve fund increased by $0.8million in April as a result of the appreciation of the market value of assets.

  3. Minutes – The BFC approved the Minutes of the 25 April and 12 June 2015 meetings.

  4. Contracting and Disbursements Update – The BFC noted that the current Contracting and Disbursement policy contains an approval authority, but not a signatory authority. The BFC considered and approved a recommendation that the Board approve changes to the Contracting and Disbursement policy to include a signature authority in addition to the approval authority.

    • Action: Staff to prepare materials for Board consideration.

  5. Updates

    • FY15 Financials: Year-end forecast – The BFC reviewed the FY15 year-end forecast compared to the actuals. The preliminary forecast resulted from 10 months of actual results (July through April) and two months of forecasted activity (May and June). The forecasted budget includes an expected revenue of US$103M. The net of impact on operating cash is (US$4.4M), which takes into consideration net asset change and the cash impact.

    • Meetings Cost Analysis - Staff briefed the BFC on the cost analysis that is underway for the ICANN public meetings to provide the BFC with visibility as to what the meeting costs are on annual basis. The BFC is requested on an ongoing basis to review and recommend approval to the Board of meetings venue contracting because the venue contracting usually exceeds the US$500,000 contracting limit requiring Board approval.

  6. Any Other Business

    • Staff reported that ICANN is continuing to take steps to ensure continuity of banking services in various locations

    • Staff noted that the Board approved Reserve Fund allocation of the cost differential between holding ICANN 52 in Singapore rather than Marrakech.

    • Introduction of VP of Finance – The BFC welcomed ICANN's new VP of Finance, Becky Nash, who came onboard in March 2015.

    • Staff informed the BFC of future matters that will be coming for recommendation to the Board for approval relating to leasing space in Los Angeles and an ERP.

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."