Minutes | Board Finance Committee (BFC) Meeting
BGC Attendees: Harald Alverstrand, Becky Burr, Ron da Silva (Chair), Lito Ibarra, Danko Jevtović, Ihab Osman, and Tripti Sinha
Other Board Member Attendees: Maarten Botterman, Avri Doria, Manal Ismail, and León Sánchez
ICANN Org Attendees: Susanna Bennett (SVP & Chief Operating Officer), Xavier Calvez (SVP & Chief Financial Officer), David Conrad (SVP & Chief Technology Officer) John Jeffery (General Counsel & Secretary), Becky Nash (VP, Finance), Wendy Profit (Board Operations Senior Manager), Shani Quidwai (Director, Financial Planning & Analysis), Jennifer Scott (Senior Counsel), Vivek Sengupta (Director, Procurement), Amy Stathos (Deputy General Counsel), and Victoria Yang (Operations Sr. Program Manager)
Invited Guests: Representatives from State Street Global Advisors
The following is a summary of discussions, actions taken and actions identified:
BFC Workplan – The BFC reviewed its Workplan, which is on target.
Proposed Approval of FY21 IANA Budget – The BFC received an update from ICANN org about the FY21 IANA budget and approval process. The BFC also reviewed and discussed proposed approval of the FY21 IANA budget. The BFC provides oversight on the budgeting process for the IANA and full ICANN budget. ICANN org noted that the IANA budget is driven by its proposed expenses, includes a contingency amount for unforeseen operational expenses, and takes into account inflation. The IANA budget cycle occurs in advance of the full ICANN budget because it needs to be integrated into the full ICANN budget. ICANN org reported that to date, ICANN received input from PTI on the IANA budget; the IANA budget was published for public comment on 14 October 2019; a report of public comments was published on 19 December 2019; and the PTI Board adopted the operating plan and budget on 8 January 2020. The BFC discussed that during the public comment period, 32 comments were received and noted that no substantive changes were required to the IANA budget as a result of the comments. ICANN org recommended the BFC recommend that the Board approve the IANA budget. The committee noted that following ICANN Board approval, an empowered community process will begin and, if no petitions are raised, the FY21 IANA budget will be adopted and in effect for FY21. After discussion, the BFC voted to recommend that the Board approve the FY21 IANA budget.
- Action: Board to consider the BFC's recommendation that it approve the FY21 IANA budget.
Reserve Fund Performance Review – The BFC received its annual update on the reserve fund performance by representatives from State Street Global Advisors (SSGA), including how the reserve fund is invested and how the investments are performing. The performance of the reserve fund investments over 2019 was favorable, both in terms of contributions and market returns. The fund is maintaining a moderately conservative risk profile and growing its value beyond inflation. The BFC raised the question of whether the strategy of the reserve fund portfolio investments should change after it reaches the desired amount of reserve funding. ICANN org intends to continue discussion on that topic with the SSGA representatives and provide analysis and feedback to the BFC.
Review of BFC Charter – The BFC Chair indicated the BFC needs to do a number of things regarding the charter. However, the BFC deferred review and discussion of the BFC's charter until its next meeting.
Published on 20 February 2020