Minutes | Board Finance Committee (BFC) Meeting
BFC Attendees: Harald Alverstrand, Becky Burr, Ron da Silva, Danko Jevtović (Chair), Mandla Msimang, Ihab Osman and Tripti Sinha
Other Board Member Attendees: Avri Doria, Lito Ibarra, and Göran Marby
ICANN Org Attendees: Michelle Bright (Board Content Coordination Director), Xavier Calvez (SVP, Planning and Chief Financial Officer), Franco Carrasco (Board Operations Specialist), Mukesh Chulani (gTLD Accounts Senior Manager), John Jeffrey (General Counsel and Secretary), Cecibel Izaguirre (Manager, Billings Operations), Elizabeth Le (Associate General Counsel), Alex Morshed (Finance Manager), Becky Nash (VP, Planning), Shani Quidwai (Sr. Director Finance), Vivek Sengupta (Director of Procurement), Amy Stathos (Deputy General Counsel), Russ Weinstein (VP, GDD Accounts and Services), and Victoria Yang (Planning Sr. Manager)
The following is a summary of discussions, actions taken and actions identified:
- BFC Workplan – The BFC reviewed its Workplan for FY21, including updates on the adjustment of timing of the performance review of the Reserve Fund from January to February 2021, and the addition of the proposed Supplemental Fund for Implementation of Community Recommendations to the January 2021 BFC meeting. The BFC noted that Workplan is on target.
Contracting Approval for Credit Card Processing – The BFC received a briefing on the proposed contract for credit card processing service provider because the total amount over the three-year term of the contract is expected to exceed US$500,000. ICANN org followed the procurement process, which included a formal RFP conducted by ICANN Procurement and Accounting. ICANN org evaluated the proposals received and determined that the service provider with which ICANN has engaged since September 2007, provides the best product of ICANN's needs and the lowest price. The proposed costs are in line with industry standards and were less than the proposed rates from other RFP respondents. The proposed contract represents a total costs savings to ICANN org compared to the current contract and the total costs is covered in the budget. The proposed three-year contract may be cancelled at any time with 60 days advance notice. The BFC approved a recommendation to the ICANN Board for approval of a three-year contract with the proposed vendor for credit card processing.
- Actions: ICANN org to prepare materials for Board consideration.
Draft FY22-26 Operating & Financial Plans (FY22-26 O&FP) and Draft FY22 Operating Plan & Budget (FY22 OP&B) – The ICANN President and CEO provided a summary of the draft FY22-26 O&FP and draft FY22 OP&B. He expressed his thanks to ICANN org staff for the amount of work that was needed to prepare the draft FY22-26 O&FP and draft FY22 OP&B. ICANN org briefed the BFC on the draft FY22-26 O&FP and draft FY22 OP&B, which will be published from mid-December 2020 to February 2021 for public comment. The ICANN Strategic Outlook: 2020 Trends Report and Funding Forecast Assumptions for Fiscal Years 2022-2026 will be published alongside the Planning documents as supporting documentation. With respect to the draft FY22-26 O&FP, based on the Strategic Outlook trends assessment, the Board Strategic Planning Committee recommended no changes at this time to the Strategic Objectives. Although there is still uncertainty, for planning purposes the FY22 plans assume business travel and three face-to-face meetings ICANN meetings and other engagement activity will resume. The WS2 Implementation work is prioritized in the FY22 plans. Other Board-approved recommendations will be subject to prioritization process. Progression towards the achievement of the Operating Initiatives is included in FY22 plans. The BFC reviewed the 15 Operating Initiatives for FY22, including examples of key milestones. ICANN org also briefed the BFC on the five year (FY22-26) financial funding projections approach, and the funding and expense assumptions. The BFC expressed its support to publish the documents for public comment. The BFC also discussed preparations for future work and asked ICANN org to prepare a resourcing plan.
- ICANN org to publish materials for public comment.
- ICANN org to prepare a resourcing plan for future work.
- Process for Approval of Legal Invoice Disbursement – The BFC discussed the revised process for approval of legal invoice payments, which includes a step for the Board Accountability Mechanism Committee (BAMC) to consider the proposed payment before it is submitted to the Board for approval. As part of this revised process, the BFC will be notified of any BAMC recommendation for such approvals before the approvals are submitted to the Board. The BFC will also receive a regular spending report.
- Sponsoring Committee for the Board Caucus on Auction Proceeds – The BFC considered and agreed with the Board Governance Committee's proposal that the BFC shall act as the Sponsoring Committee for the Board Caucus on Auction Proceeds.
Published on 21 January 2021