Skip to main content
Resources

Minutes | Board Finance Committee (BFC) Meeting

BFC Attendees: Harlad Alverstrand, Becky Burr, Ron da Silva (Chair), Lito Ibarra, Danko Jevtović, Ihab Osman, and Tripti Sinha

Other Board Member Attendees: Göran Marby and León Sánchez

ICANN Org Attendees: Susanna Bennett (SVP, Chief Operations Officer), Xavier Calvez (SVP & Chief Financial Officer), Franco Carrasco (Board Operations Specialist), James Caulfield (VP, Risk Management), John Jeffery (General Counsel and Secretary), Alex Morshed (Finance Manager), Becky Nash (VP, Finance), Cassia Oliveira (Senior Manager, Office of the CEO), Shani Quidwai (Director, Financial Planning & Analysis), Jennifer Scott (Senior Counsel), Amy Stathos (Deputy General Counsel), Theresa Swinehart (SVP, Multistakeholder Strategy & Strategic Initiatives), Russ Weinstein (Senior Director, gTLD Accounts & Services), and Victoria Yang (Operations Senior Program Manager)

Invited Guests: Representative from Bridgebay Financial Inc.


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

  1. Review of Financial Planning Update – The BFC received a presentation from ICANN org regarding the status of ICANN org's investments and how they might be affected by the impact of the COVID-19 virus on the global economy. ICANN org explained that it has regulary engaged with its outside investment advisor, Bridgebay Financial Inc., to help monitor ICANN org's investments during the current market volatility and to consult on the adequacy of ICANN org's investment policy directions. It was also explained to the BFC that Bridgebay Financial Inc. has discretion to manage the invested funds, so long as it is done within the scope of the investment policy directions. ICANN org reported to the BFC that, to date, the negative impact of the market conditions on ICANN org's investments for the reserve fund and new gTLD program funds has been relatively low given the conservative nature of the investment policy. ICANN org presented three potential investment impact scenarios for the remainder of Fiscal Year 2020 (FY20) and FY21, including those with low, middle (base), and high impact assumptions and the potential need for drawing on the reserve fund. ICANN org explained to the BFC that as a result of the known market volatility, there will now be changes to the previously proposed FY21 budget assumptions. The BFC reviewed and discussed the scenarios, as well as discussed the process for documenting changes to the FY21 budget assumptions. ICANN org will update the proposed FY21 budget assumptions for the BFC's further review and discussion. The BFC also discussed and agreed to continue to consider, if needed, options regarding transfer of funds from the reserve fund to the operating fund, if it becomes necessary due to COVID-19 impact on funding sources.

    • Action: ICANN org to update the proposed FY21 budget assumptions for the BFC's further review and discussion.

Published on 24 April 2020

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""icann.org"" is not an IDN."