Minutes | Board Finance Committee (BFC) Meeting
BFC Attendees: Maarten Botterman, Ron da Silva (Chair), Danko Jevtovic, Khaled and Tripti Sinha
Other Board Member Attendees: Cherine Chalaby, Avri Doria, and Göran Marby
ICANN Org Attendees: Susanna Bennett (SVP, Chief Operating Officer), Michelle Bright (Board Content Coordination Director), Xavier Calvez (SVP, Chief Financial Officer), Franco Carrasco (Board Operations Specialist), Aaron Jimenez (Board Operations Sr. Coordinator), Vinciane Koenigsfeld (Director, Board Operations), Elizabeth Le (Associate General Counsel), Cyrus Namazi (VP, Domain Name Services & Industry Engagement, Global Domains Division), Becky Nash (VP Finance), Trang Nguyen (VP, Strategic Programs), Wendy Profit (Manager, Board Operations), Amy Stathos (Deputy General Counsel) and Nick Tomasso (VP, Global Meeting Operations & Managing Director – Middle East & Africa), Shani Quidwai (Dir. FP&A).
The following is a summary of discussions, actions taken and actions identified:
- BFC Workplan – The BFC reviewed its Workplan which is on target.
- FY19 Forecast Summary –The Committee reviewed the FY19 Forecast, noting that the operational expenses are lower than budget and the funding is forecasted to be aligned with the FY19 Budget.
- Draft FY20 Operating Plan and Budget – The BFC discussed the draft FY20 Budget, which shows funding with a projected growth of two percent and expenses and headcount aligned with that projected growth. There are no major changes in the expected Five Year Plan. The Committee reviewed the FY20 Operating Plan and Budget planning timeline, which began in July 2018. The Draft FY20 Budget estimates total funding for ICANN Operations to be US$140.1 million, cash expenses to be US$137.1 million, which is projected to result in an increase to net assets of US$3 million. The Draft FY20 Budget also accounts for an increase to the Reserve Fund of US$3 million. The Committee discussed the funding forecast approach, which covers several categories of fees: (i) transactional fees for registries (per TLD) and registrars; (ii) fixed fees for registries (per TLD) and registrars (accreditation fees); and (iii) registrar application fees. Many factors are considered in the projection of funding for each category, including historical data, performance input from industry participants, and recent marketplace developments. The funding values for a fiscal year are developed 18+ months in advance. ICANN org continues to review the projections and update the forecast based on market developments on a quarterly basis.
- IANA Functions Budget Timeline and Process Review – The BFC reviewed the IANA Functions Draft FY20 Operating Plan and Budget, which was posted for public comment from 28 September to 12 November 2018. The report on the public comments have been published, noting that the comments received suggested that there be more granular detail provided in future budgets. The BFC approved a recommendation to that the ICANN Board approve the IANA FY20 Budget, which includes the PTI Budget plus a few items that are in the ICANN FY20 Budget relative to the IANA Services. The BFC noted that once approved by the Board, the IANA FY20 Budget will be subject to rejection by the Empowered Community in accordance with Article 22, Section 22.4(b) of the ICANN Bylaws.
- Action(s): ICANN org to prepare materials for Board consideration.
Published on 03 January 2019