1999-2000 Transition Budget
Note:This budget has been superseded by the Six-Month Financial Report adopted by the Board on February 10, 2000.
Transition Budget for Fiscal Year 1999-2000
Pursuant to the ICANN Bylaws, Article XI(4)(a), this annual budget was submitted by the President to the Board of Directors for adoption. The ICANN Board approved this budget by resolution at its Berlin meeting on May 27, 1999.
TABLE OF CONTENTS
Transition Budget for Fiscal Year 1999-2000
(All Amounts in U.S. Dollars)
GENERAL. The budget for FY 99-00 covers the first full year of ICANN operations following the startup period (11/1/98-6/30/99). In the new fiscal year, ICANN will continue to be primarily focused on its transition activities as set forth in the U.S. Government's White Paper and Memorandum of Understanding with ICANN. These include:
Given the uncertain nature and outcome of many of the year's transition activities, the budget is intended to provide flexible resources from staff employees, consultants and other sources of assistance. Following direction from the ICANN Board at the Singapore meeting, the budget makes an initial contribution of $1.6 million to an operating reserve, which is intended to stabilize in the future at a minimum of one year's operating expenditures. It is likely that an operating loss will be realized at the end of the startup period in June, 1999, which will reduce the total available for the reserve. To the extent that operating savings are realized in the course of any fiscal year, they will be added to the reserve category at yearend, thus reducing the amounts required for the reserve in future fiscal years.
REVENUE. Total revenue for the fiscal year is budgeted at $5.9 million. Of this amount, a total of $5.0 million is projected from payments to ICANN from Registries and Registrars. An initial registrar fee schedule of $5,000 per year plus up to $1 per year per assigned name was reviewed by the ICANN Board as part of its public comment and decision process in establishing registrar accreditation guidelines for the .com, .net and .org domains in March, 1999. This schedule, fixing the variable component at $1 pername per year, will be used in FY 99-00, subject to revision based on over- or underrecovery of the budgeted revenue amount in this category.
Registrar accreditation activities in the .com, .net and .org domains will continue in the next fiscal year and are estimated to produce $100,000 in revenue, based on the current fee schedule of $1000 per application for accreditation.
A total of $700,000 is anticipated from grants and contributions. Some of this amount reflects receipt of funds pledged during ICANN's startup period. It is also anticipated that one or more governments will make grants to ICANN to assist in support of the transition program, and a total of $400,000 has been budgeted from this source.
The Other category includes $100,000 as an estimate of amounts received from Supporting Organizations to reimburse ICANN for meeting and travel expenses incurred on behalf of Supporting Organizations members and individuals and other similar activities undertaken as part of ICANN programs.
EXPENDITURES.Total Expenditures, Capital equipment purchases and Reserve contribution amount to $5.9 million for the fiscal year, of which $4.2 million is expenditures. Within that category, the total for Executive and Staff Compensation is $1.6 million, which is composed of $1.235 million in salaries and wages and $365,000 in employment taxes and fringe benefits. The anticipated full time equivalent staffing level for the fiscal year is 14.0. See Exhibit 1 and the Staff Organization for additional detail on this category of expenditure.
Costs of professional and technical services agreements are projected at $1.0 million for the year, or approximately $85,000 per month, which is in line with recent experience. The largest single expense within this category is for legal services. Technical services, which currently exceed $20,000 per month, are expected to decline during the year as permanent staff additions are made.
Estimated costs of four three-day Board of Directors meetings, plus bimonthly telephone conference meetings, total $850,000. The Board, which will expand during the year to its full complement of nineteen Directors from the current ten, will continue to meet in major regions of the world in order to enable its constituents to have an opportunity to physically participate in Board public forums and committee meetings. Board public forums will continue to feature video and voice distribution over the Internet.
Staff and committee travel and meeting expenses are estimated at $450,000, including reimbursed amounts for Supporting Organizations, etc.
Administration expense is projected at $300,000 which includes office rental and related support costs, insurance, taxes, amortization of previously purchased capital equipment, computer and network operating costs and maintenance, etc.
Provision for purchase of $100,000 of computing equipment and software to support Phase 2 of the planned computing capability for the corporation is included in this budget proposal. This amount may be adjusted upward or downward as more detailed planning proceeds based on Board decisions made during the course of the fiscal year.
Contingency amounts, provision for a prior year operating loss and a reserve contribution totaling $1.6 million are included in the budget. Contingencies include programs not currently anticipated in the budget, as well as uncertainties in specific budget categories, especially legal services, due to the transition nature of ICANN's programs. It is the intention of the ICANN Board to create a reserve account of at least one year's operating expenditures, to be funded over several fiscal years.
Compensation ranges are those associated with assigned duties and responsibilities of positions as defined in Staff Organization. Specific salaries paid to individual employees will vary depending on experience, length of tenure in position, and variations in assigned duties from position description. Some positions may be filled on a full time or part time basis by consultants or personal and technical services agreements.
Fringe benefits include employment taxes, insurance, retirement contributions and related items.
This document contains descriptions of the staff positions at ICANN and will be updated as necessary from time to time to reflect the staffing needs of the corporation. Some of the positions may be filled on a consultant or less than full time basis either temporarily or permanently. Not all of the positions described may be filled in any given budget year. Positions at Officer Level, except the President, may be filled at the Manager or Director level depending on the needs of ICANN and the experience of the incumbent.
President and Chief Executive Officer
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.
Chief Technical Officer
Performs duties as set forth in the corporate Bylaws. Responsible to CEO and Board for ICANN technical plans and programs. Primary liaison to national and international Internet standards organizations. Plans and oversees work of Internet Assigned Numbers Authority (IANA) staff members. Responsible for technical publications of the corporation. Serves as staff liaison to corporate technical committees and advisory bodies.
Chief Financial Officer
Performs duties as set forth in the corporate Bylaws. Responsible to CEO and Board for finance and accounting functions within the corporation. Develops annual revenue and expense budget plan. Oversees preparation and submission of internal and external financial reports, tax returns and related documents and routine accounting schedules and reports. Reviews and approves contracts for corporate services. Recommends the selection of corporate external auditors. Performs Treasurer functions and provides support to Finance Committee as needed.
Chief Administrative Officer
Responsible to CEO for administrative functions of the corporation. Plans and supervises work of administrative staff to support needs of Board of Directors, Officers and executive staff. Develops and recommends human resources plan for corporation. Oversees preparation and submission of internal and external corporate reports. Organizes and oversees corporate records, files and related systems. Supports executive staff in planning and executing plans and projects as directed by CEO and Board. Arranges staff support to Board and corporate committees and advisory bodies. Performs Secretary and Assistant Secretary functions as directed by Board. Position may be filled at the Manager or Director level depending on the needs of the corporation.
Responsible to CEO and Board for legal affairs of the corporation. Reviews and approves all legal documents. Advises Board of Directors, CEO and executive staff on legal interpretation of planned or proposed actions of the corporation. Prepares and submits official minutes of Board meetings and related public notices. Primary liaison to external counsel and to counsel for other organizations and agencies.
Manager, Policy Analysis
Responsible to the CEO for planning and development of the corporate policy agenda and related staff support to the Board, executive staff, committee Chairs and members. Identifies needs for specific policy analysis, 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, Computer Systems
Responsible to Chief Technical Officer for acquisition and operation of corporate computer systems, software and facilities, including local and wide area networking. Provides technical support to IANA staff and functions as needed. Analyzes, designs and implements software systems and applications as needed to support staff and programs of the corporation. Develops plans for and recommends external sources of technical support as needed. Develops and implements computer systems security plan for corporation. Reviews and approves all computer hardware and software acquisitions.
Manager, Internet Assigned Numbers Authority
Responsible to Chief Technical Officer and CEO for administration of IANA functions, including root server and top level domain (TLD) numbering and assignment matters, liaison to TLD registry-administrators, and coordination of Internet technical parameters and standards associated with root and TLD numbering and assignment.
Manager, Communications and Publications
Responsible to CEO for corporate publications and public outreach and education programs. Designs and develops consistent editorial standards for documents and publications. Provides support to corporate officers and staff to meet communications requirements. Coordinates work of external sources of public outreach and education. Responsible for coordination of corporate Web site, including design and organization of content.
Executive Assistant to the President and Chief Executive Officer
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.
Performs specialized duties in a variety of functional areas requiring skills and experience acquired through formal training or the equivalent work experience. Works under direction and supervision of executive staff member.
Performs a variety of administrative functions requiring skills and experience acquired through formal training or the equivalent work experience. Works under the direction and supervision of management staff members.
Performs a variety of office tasks as directed by a member of the administrative staff.
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