ICANN | FY2000-2001 Budget | 6 June 2000

  ICANN Logo Fiscal Year 2000-2001 Budget
(adopted 6 June 2000)

Budget for Fiscal Year 2000-2001
(July 1, 2000 to June 30, 2001)
(adopted 6 June 2000)


I. Executive Summary

II. Background

III. Budget for FY2000-2001

A. Budget Priorities and Issues
B. Budget Schedule A and Notes
C. Budget Exhibit 1 Staff Organization

I. Executive Summary

This document contains the budget for ICANN for FY2000-2001, commencing July 1, 2000. The budget was approved by the Board of Directors on June 6, 2000 in accordance with the provisions of Bylaw Article XI, section 4.

Fiscal year 2000-2001 will be the second full budget year for the corporation and the first in which the preparation of the budget is based on significant operating experience. The budgeted expenditures for the next fiscal year are $4.279 million, which is $21,000 less than those proposed in the May 1999 budget for the current year of $4.300 million. (All dollar amounts are in US dollars.)

Revenues for support of continuing expenses are budgeted to decline from $5.000 million to $4.314 million, which is $686,000 or 14% less. This difference reflects the recommendations of the Task Force on Funding, which were approved by the ICANN Board in November, 1999. In the category of one time and special project income, there is a year to year decline of $190,000.

The net effect of the changes in budgeted revenue and expense from the prior year is a reduction in the budgeted contribution to the corporation's operating reserve of $855,000, from $1.600 million to $745,000.

The Board has established a goal of creating an operating reserve approximately equal to one year's operating expenses. The FY99-00 and FY00-01 budgets, if fully realized, would accomplish about one-third of that objective, with operating reserves projected to stand at $1.223 million at June 30, 2001.

The following sections of the budget contain additional background information and details of the budget and of the budget process for the next fiscal year.

Table 1 -- Summary of Budgeted Revenue and Expenditures for FY 2000-2001
gTLD Registries and Registrars

US $ 2,140,000

gTLD Registries


ccTLD Registries/Registrars


IP Address Registries


Accreditation Fees


Special Project Grants


Contributions & Other


Total Revenue

$ 5,024,000


$ 1,611,000

Professional and Technical Services


Board of Directors and Public Meeting Expenses


Other Travel and Meeting Expenses




Special Projects


Capital Equipment Purchases


Contribution to Working Capital and Operating Reserve


Total Expenditures, Capital Equipment and Reserve Contribution

$ 5,024,000

II. Background

Fiscal year 2000-2001 will be the second full budget year for the corporation and the first in which the preparation of the budget is based on significant operating experience. During the startup fiscal period from October 1998, through June 1999, the corporation was supported primarily by donations. Total revenue for the eight months was $708,000, with total expenses of $1,466,637. An operating loss of $758,767 was carried forward to the 99-00 fiscal year. During the summer of 1999, unsecured loans were obtained by the corporation in the total amount of $1.025 million to offset the prior year loss and provide working capital. Additional accounting detail on the startup period is available at <http://www.icann.org/financials/financial-report-fye-30jun99.htm>.

A budget for fiscal year 1999-2000 was developed by the staff and posted for public comment in April 1999. A revised version was adopted by the Board at its Berlin meeting on May 27, 1999. Following consideration of a mid-year financial report in February 2000, the Board further revised the FY99-00 budget to bring it in line with current projections of revenue and expense. See <http://www.icann.org/financials/budget-fy99-00-27may99.htm> and <http://www.icann.org/financials/financial-report-fpe-31dec99.htm>.

In July 1999, the Board directed the President to convene a Task Force on Funding (TFF) composed of representatives of Domain Name and Address Registries and Registrars with the objective of reviewing ICANN budgetary needs and making recommendations to the Board. A final draft of the TFF report was published in October 1999, and its recommendations were adopted by the Board at its Los Angeles meeting on November 4, 1999. See <http://www.icann.org/committees/tff/tff.htm>.

In November 1999, ICANN executed a series of agreements with the United States Department of Commerce and with Network Solutions, Inc. that provide, among other things, for specified payments to ICANN from the NSI-operated registry for the .com, .net and .org domains, and from NSI acting as a competitive registrar in those same domains. These payments were projected to reach a total amount in FY99-00 of $2.250 million. This amount is included in the schedule accompanying the TFF report and in the revised budget for FY99-00. See <http://www.icann.org/nsi/nsi-agreements.htm>.

III. Budget for FY2000-2001

A. Budget Priorities and Issues

General and Continuing Priorities

  • Provide timely and responsive staff support to the policy-making activities of the Board, its Supporting Organization Councils and other advisory bodies as needed, including policy implementation, preparation of legal agreements, etc.
  • Meet operational commitments of service programs, including IANA, root servers, registrar accreditation, membership, etc.
  • Conduct an active education and outreach program that supports public participation in ICANN policy-making activities, including public meetings, electronic forums, hardcopy publications, etc.
  • Carry out the general management and administrative responsibilities of the corporation in an efficient and cost effective manner.

Specific Priorities for FY00-01

  • Complete Board policy-making and related implementation actions for gTLD registries and registrars.
  • Complete Board policy-making and related implementation actions on revisions to ICP-1 dealing with delegation and administration of ccTLDs.
  • Complete implementation work on At Large Membership, including Board policy actions taken in Cairo, election in 2000, study in 2001, etc.
  • Complete the work plan for improvements to the root server system and carry out necessary implementation steps.
  • Complete work necessary to fulfill ICANN obligations under the Department of Commerce/ICANN MOU/JPA transition agreement.
  • Conduct scheduled program reviews for Supporting Organizations and other advisory bodies and make any revisions to ICANN organizational structure found necessary by the Board as a result of the reviews.
  • Complete staff recruiting for positions authorized in the approved budget.

B. FY2000-2001 Budget Schedule A and Notes

Internet Corporation for Assigned Names and Numbers

FY00-01 Budget - Schedule A
See Accompanying Explanatory Notes
All Amounts in Thousands of U.S. Dollars


FY99-00 Budget
Approved May 1999

12 Mos Projected Actual as of 31 Mar 00

Approved June 2000
Income to Support Continuing Expenses
gTLD Registrars




gTLD Registries




ccTLD Registries/Registrars




IP Address Registries




Subtotal - Continuing Income




One Time and Special Project Income
Accreditation Fees




Special Project Grants




Contributions & Other




Total Income




Fulltime Staff - end of period








Professional & Technical Services




Board & Public Meetings




Other Travel & Meetings








Special Projects




Subtotal - Expense




Capital Equipment Acquisition




Total Expense & Equipment




Surplus of Income over Expense




Reserve Balance - Beginning of Year




Net Income (Loss) for Year




Loans Payable - End of Year




Reserve Balance - End of Year




(1) Income. As a result of discussions with the Registry/Registrar Budget Group, the amounts and proportionate shares of income for continuing expenses from among the three major income sources that were recommended by the Task Force on Funding in the fall of 1999 and approved by the Board for the 99-00 fiscal year are changed only slightly for the 00-01 fiscal year, with a total increase in these revenue categories of $39,000, all of which is being contributed by the gTLD registrars.

A budgeted increase in accreditation fees of $460,000 results from a very substantial increase in the number of registrars accredited for the .com, .net and .org domains. There are offsetting incremental expenses associated with administration and monitoring of accreditation agreements, which are described below under expenses.

Under Special Project Grants, the $200,000 awarded by the Markle Foundation for support of At Large membership startup costs will be expended in approximately equal shares between the 99-00 and 00-01 fiscal years. Other grants anticipated in the 99-00 fiscal year budget have not materialized, producing a year-to-year reduction in grant income of $300,000.

Contributions are projected to decline as a result of ICANN's continuing income sources having been established during the current fiscal year, with a resulting year-to-year decline of $350,000.

The net of all year-to-year revenue changes is a decrease in income from $5.900 million to $5.024 million, or $876,000.

(2) Expense. Overall expense, including equipment acquisition, is projected to decrease, on a budget-to-budget basis, from $4.300 million to $4.279 million, or $21,000. However, there is an increase from $2.813 million to $4.279 million, or $1.466 million, from the projected actual in the 99-00 fiscal year to the budget in the 00-01 fiscal year. This increase reflects primarily the following factors: (1) filling of authorized staff positions, (2) holding of four quarterly public and Board meetings rather than three, (3) travel and meeting expenses associated with a full Board of nineteen Directors and a full staff complement, and (4) increased administrative costs associated with full staffing, including an increase in space rental and office support. Additional detail on specific expense line items is included below.

(3) Surplus and Operating Reserve. For the 00-01 fiscal year, assuming that revenue commitments to the continuing expenses of the corporation from its three major constituencies are met, a contribution to the operating reserve of $745,000 is budgeted. This amount would produce a reserve total at the end of the year of $1.223 million, or approximately one-third of the planned target of having one year's operating expenses covered by reserves.

(4) Detail on Expense Line Items.

(a) Personnel. Exhibit 1 in the following section contains detail on current staffing levels and position descriptions. This category includes all salary, wage, benefit and recruiting expenses. It also includes costs of consultants and part time employees who are filling staff positions on a temporary basis.

A number of adjustments in positions have been made as a result of operating experience. In addition, the number of authorized staff positions in the 00-01 fiscal year's budget has been increased by one to meet increased workload in the registrar accreditation area. The year-to-year change in budgeted full time equivalent positions is from 14.0 to 15.3.

Assuming that currently vacant staff positions are filled at the midpoint of existing ranges, total personnel costs are projected at $1.611 million. This amount may vary up or down based on actual recruiting experience in the course of the fiscal year.

(b) Professional & Technical Services. This category includes agreements for legal services and for public affairs support. The projected amount of $984,000 is a reduction from the 99-00 fiscal year, which results from filling some of these requirements with inhouse staff.

(c) Board and Public Meetings. This category covers expenses associated with the Board's quarterly public forums and face-to-face meetings, as well as monthly teleconferences. Included are travel, hotel, meeting room, technical and administrative support, etc. The projected amount of $600,000 is for four meetings and is a decrease from the original budget, primarily as a result of the willingness of local host committees of the quarterly meetings to significantly defray the costs of the meetings. The low number for 99-00 fiscal year actual is a result of holding three rather than four quarterly meetings, and of extraordinary efforts of Directors and staff to economize in this category.

(d) Other Travel and Meetings. This category covers staff travel in connection with job assignments, Director travel in connection with outreach activities, as well as committee and other scheduled meetings and events not included in the quarterly Board meetings. The budgeted amount for 00-01 fiscal year of $420,000 reflects the net of increased costs, increased numbers of staff, and efforts to control costs in this category by requesting reimbursement from meeting hosts, etc.

(e) Administration. This category includes costs of operation of the headquarters office, purchased accounting and administrative services, insurance, debt service, utilities, computer and office systems, equipment depreciation and network connectivity and equipment. The increase to $504,000 reflects increases in staff and associated support costs.

C. Budget Exhibit 1 -- Staff Organization

. The proposed organization plan for ICANN for FY00-01 includes 15.3 full time equivalent positions, an increase of 1.3 from the current year. It is Board policy that these positions are to be filled flexibly to meet the needs of the corporation through a combination of full-time and part-time employees, consultants, fellowships and other means as appropriate. Positions at the Officer level, except the President, may be filled at the Manager level depending on the needs of ICANN and the experience of the incumbent. The position descriptions shown here will be updated as necessary from time to time.

Several changes have been made to the staff positions over the course of the 99-00 fiscal year as operating experience has been accumulated.

The ICANN Board recently eliminated the position of Chief Technical Officer. This position was created in the original ICANN staffing plan to support the work of Jon Postel, whose contributions to IANA and the Internet were unique and irreplaceable. The Board believes that timely and effective technical advice is available to it from the members of ICANN's Supporting Organization Councils and from other sources and that a full-time staff position of CTO is not necessary.

The positions of Chief Administrative Officer and Chief Financial Officer have been combined into the single position of Business and Finance Manager, which more closely reflects actual requirements in this area.

The position of Manager of Publications has been staffed at 0.3FTE, rather than full time, so that ICANN/IANA may have the benefit of the extensive experience of Joyce Reynolds, who has separate responsibilities to the IETF as RFC Editor, a position funded by the Internet Society through the USC Information Sciences Institute.

A new position of Registrar Liaison has been created to deal with a substantially larger than anticipated workload in the registrar accreditation program and will be filled with two full-time staff members.

A new position of Administrative Assistant to the IANA Manager has been created to deal with an increase in workload in that area as well.

A Policy Analyst position has been created to provide additional support to the Board and to the Supporting Organizations in the development of ICANN policy issues. A position formerly identified as Technical Specialist is now being filled as Network Administrator.

Staff Positions. The staff positions and their status in May, 2000, is as follows:



President/Chief Executive Officer

M. Roberts (CEO search in progress)
Vice President and General Counsel

L. Touton
Senior Policy Officer

A. McLaughlin
Manager, Technical Operations

S. Wolff (recruiting in progress)
Manager, IANA

M. Schipper
Manager, Systems

Manager, Business and Finance

D. Schroeder
Manager, Publications

J. Reynolds
Policy Analyst

(recruiting in progress)
Network Administrator

J. Villaruz
Registrar Liaison

D. Halloran
Registrar Liaison

(new position)
Executive Asst to CEO/Board

IANA Administrative Assistant

(recruiting in progress)

G. Ruiz
Office Assistant

(recruiting in progress)
Total FY00-01 Budgeted Positions


Compensation Ranges. Staff are compensated on the basis of competitive market conditions in Marina del Rey, California, or wherever the position is geographically located. The amounts shown below are inclusive of fringe benefits. The Board approved salary ranges currently are set at the following levels:

Officers of the Corporation

US $ 100,000 - 300,000


40,000 - 120,000

Technical and Administrative Specialists

35,000 - 80,000

Nonexempt Administrative Positions

20,000 - 35,000

Position Descriptions.

President and Chief Executive Officer (Michael Roberts)

Performs duties as set forth in the corporate Bylaws. Responsible for management of the corporation, recruiting and supervising executive staff, submission and execution of annual budget, and development and coordination of plans to carry out strategic objectives for the corporation as established by the Board of Directors. (Mr. Roberts has been engaged by the Board through a professional services agreement to serve as President/CEO until the completion of a search for a permanent Chief Executive.)

Vice President and General Counsel (Louis Touton)

Responsible to CEO and Board for legal affairs of the corporation, serving as primary liaison to the corporation's external counsel and to counsel for other organizations and agencies. Advises Board of Directors, CEO, executive staff, and other groups within the corporation on legal interpretation of proposed actions. Reviews and approves all legal documents. Plans and directs Registrar Accreditation and Uniform Dispute Resolution programs. As Vice President, provides assistance to the President on projects as directed. Serves as Secretary of the corporation. Prepares and submits official minutes of Board meetings and related public notices and gives guidance to secretaries of other groups within the corporation in performing their functions.

Senior Policy Officer (Andrew McLaughlin)

Responsible to the CEO and Board for planning and development of the corporate policy agenda. Provides for policy staff support to the Board, executive staff, committee Chairs and Supporting Organization Councils. Identifies needs for policy studies and analysis, including requirements for acquisition and maintenance of databases and other forms of information, both internal and external, to support policy work. Supervises and coordinates corporate policy staff and external policy consultants and resources.

Manager, Technical Operations (Suzanne Wolff - recruiting in progress)

Responsible to CEO for acquisition and operation of corporate computer systems, software and facilities, including local and wide area networking. Provides support to IANA staff and functions as needed. Develops plans for and recommends external sources of operations support as needed. Develops and implements computer systems security plan for corporation. (Ms. Wolff has been serving as Technical Operations Manager while on a professional services agreement to ICANN from USC/ISI, where she will continue her work when a permanent manager has been hired.)

Manager, Internet Assigned Numbers Authority (Michelle Schipper)

Responsible to CEO for administration of IANA functions, including assignment of technical parameters and standards associated with Internet Protocols, Internet Address registry numbering and assignment matters, and liaison to TLD registry-administrators.

Manager, Systems (vacant)

Responsible to CEO for technical architecture functions of the corporation. Analyzes, designs and implements software systems and applications as needed to support staff and programs of the corporation, including policy, IANA and root server system. (To date, requirements in this area have been fulfilled through technical services agreements with USC/ISI and other organizations as needed.)

Manager, Business and Finance (Diane Schroeder)

Responsible to CEO for finance, accounting and administrative functions within the corporation. Oversees preparation and submission of internal and external financial reports, tax returns and related documents and routine accounting schedules and reports. Plans and supervises work of administrative staff to support needs of Board of Directors, Officers and executive staff. Administers human resources plan for corporation. (Ms. Schroeder has been assisting ICANN at less than full time, but is now transitioning to full time employment.)

Manager, Publications (Joyce Reynolds)

Responsible to CEO for corporate publications and education programs. Designs and develops consistent editorial standards for documents and publications. Provides support to corporate officers and staff to meet communications requirements. Responsible for coordination of corporate Web site, including design and organization of content. (Position currently filled at less than full time.)

Policy Analyst (recruiting in progress)

Responsible to the Senior Policy Officer for assignments in planning, development and implementation of the corporate policy agenda and related staff support to the Board, executive staff, committee Chairs and Directors. Conducts studies as needed, including data acquisition, analysis and presentation; formation and support ofworking groups, and coordination with external policy groups and consultants. Performs liaison duties to Supporting Organization Councils.

Network Administrator (Jaime Villaruz)

Responsible to Manager, Technical Operations for planning, design, deployment and operation of corporate networks, server communications, electronic mail and websites. Coordinates computer security plan and related monitoring. Supports specialized requirements for remote access, Board meetings, etc.

Registrar Liaison (Dan Halloran)

Responsible to Vice President and General Counsel for administration of registrar accreditation program, including compliance issues. (A second position in this category is included in the FY00-01 budget.)

Executive Assistant to the President and Chief Executive Officer (vacant)

Responsible to the CEO for coordination of Board, staff and external affairs. Develops and administers Board agendas. Oversees arrangements for regular and special Board meetings, public forums, workshops and ICANN-related events sponsored by other organizations. Maintains master calendar for Board members and executive staff. Provides liaison as needed to officials and executives of other organizations and agencies.

IANA Administrative Assistant (recruiting in progress)

Performs a variety of IANA administrative functions requiring skills and experience acquired through formal training or the equivalent work experience. Works under the supervision of IANA Manager.

Receptionist (Gigi Ruiz)

Performs a variety of reception, telephone, mail and administrative tasks as directed by a member of the administrative staff.

Office assistant (recruiting in progress)

Performs a variety of office tasks as directed by a member of the administrative staff.

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