|
|
Proposed Budget for Fiscal
Year 2000-2001
(4 May 2000)
|
ICANN is in the process of formulating
its budget for the 2000-2001 fiscal year. A draft
budget developed through a consultative process with members
of ICANN constituencies was posted on the ICANN web site on March
6 and discussed at the ICANN public meeting in Cairo on March
9. After revisions were made through additional consultation
with members of the ICANN community, the proposed budget was
discussed by the ICANN Board at its monthly meeting on May 4
and approved for posting for public comment.
The Board invites comments on the revised
budget and has established a Public Comment Forum for that purpose.
Comments should be made by June 1, 2000, so that they reach the
Board in time for its consideration of adopting a budget at its
June 2000 meeting.
Proposed Budget for
Fiscal Year 2000-2001
( July 1, 2000 to June
30, 2001 )
CONTENTS
I. Executive Summary
II. Background
III. Proposed Budget for FY2000-2001
A. Budget Priorities and
Issues
B. Budget Schedule A and Notes
C. Budget Exhibit 1 Staff Organization
Appendix A - Budget Process
for FY 2000-2001
Appendix B - Midyear Review of FY 1999-2000 Budget
Appendix C - Budget Issues for FY2000-2001
I. Executive Summary
This document contains the proposed budget for ICANN for FY2000-2001,
commencing July 1, 2000, which was presented by the President
to the Board of Directors on May 4, 2000 in accordance with the
provisions of Bylaw
Article XI, section 4. The proposed budget has been developed
by the ICANN staff through a consultative process with members
of ICANN constituencies. An earlier
version was posted on the ICANN web site on March 6 and presented
at the Cairo public meeting on March 9. The proposed budget was
discussed by the ICANN Board at its monthly meeting on May 4
and approved for posting for public comment. The Board will consider
public comments, make further revisions to the budget if needed,
and adopt the FY00-01 budget at its scheduled meeting in June
2000.
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 proposed
expenditures for the next fiscal year are $4.279 million, which
is $21,000 less than those proposed in the original budget for
the current year of $4.300 million. (All dollar amounts are in
US dollars.)
Revenues for support of continuing expenses are proposed 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
Creation of this level of reserve requires that budgeted revenue
targets in both the current and the next fiscal year are achieved,
and assumes that currently outstanding short term loans in the
amount of $1.025 million are repaid on schedule in August, 2000.
The transition status of ICANN and the slow progress toward reaching
agreements with major ccTLD managers and with IP Address Registries
makes the realization of the budgeted surplus and related reserve
increments subject to some doubt. In the event that assurances
from ccTLD and IP Address Registry managers with respect to their
contributions to ICANN are not forthcoming, the proposed budget
will require revision.
The following sections of the proposed budget document contain
additional background information and details of the budget and
of the budget process for the next fiscal year.
Table 1 -- Summary of Proposed
Revenue and Expenditures for FY 2000-2001
REVENUE |
|
gTLD Registries
and Registrars |
US $ 2,140,000
|
gTLD Registries |
250,000
|
ccTLD Registries/Registrars |
1,496,000
|
IP Address Registries |
428,000
|
Accreditation
Fees |
560,000
|
Special Project
Grants |
100,000
|
Contributions
& Other |
50,000
|
Total
Revenue |
$ 5,024,000
|
|
|
EXPENDITURES |
|
Personnel |
$ 1,611,000
|
Professional
and Technical Services |
984,000
|
Board of Directors
and Public Meeting Expenses |
600,000
|
Other Travel
and Meeting Expenses |
420,000
|
Administration |
504,000
|
Special Projects |
100,000
|
Capital Equipment
Purchases |
60,000
|
Contribution
to Working Capital and Operating Reserve |
745,000
|
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 current
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/en/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
are projected to reach a total amount in the current year 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. Proposed
Budget for FY2000-2001
A. Budget Priorities
and Issues
Now that ICANN is working within an established
budget process, the priorities for each new budget period will
be a mix of items carried forward from the current year as well
as new matters. The following list for next year, prepared by
the ICANN staff, is non-exhaustive and is intended to serve as
a basis for public comment. A list of the current year's priorities,
and a midyear report on their status, is contained in Appendix
B.
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. Proposed FY2000-2001
Budget Schedule A and Notes
Internet Corporation
for Assigned Names and Numbers
FY00-01 Proposed Budget - Schedule
A
See Accompanying Explanatory Notes
All Amounts in Thousands of U.S. Dollars
|
Description
|
FY99-00 Budget
Approved May 1999
|
FY99-00
12 Mos Projected Actual as of 31 Mar 00
|
FY00-01
Proposed Budget
as of 4 May 00
|
Income
to Support Continuing Expenses |
gTLD Registrars |
-
|
$2,101
|
$2,140
|
gTLD Registries |
-
|
250
|
250
|
ccTLD Registries/Registrars |
-
|
1,496
|
1496
|
IP Address Registries |
|
428
|
428
|
Subtotal
- Continuing Income |
$5,000
|
$4,275
|
$4,314
|
|
One
Time and Special Project Income |
Accreditation Fees |
100
|
450
|
560
|
Special Project Grants |
400
|
100
|
100
|
Contributions & Other |
400
|
250
|
50
|
Total Income |
$5,900
|
$5,075
|
$5,024
|
|
Expense |
Fulltime Staff - end of period |
14.0
|
12.3
|
15.3
|
Personnel |
$1,600
|
$700
|
$1,611
|
Professional & Technical
Services |
1,000
|
1,025
|
984
|
Board & Public Meetings |
850
|
320
|
600
|
Other Travel & Meetings |
450
|
233
|
420
|
Administration |
300
|
310
|
504
|
Special Projects |
0
|
100
|
100
|
Subtotal
- Expense |
$4,200
|
$2,688
|
$4,219
|
Capital Equipment Acquisition |
$100
|
$125
|
$60
|
Total Expense
& Equipment |
$4,300
|
$2,813
|
$4,279
|
Surplus
of Income over Expense |
$1,600
|
$2,262
|
$745
|
|
Reserves |
Reserve Balance - Beginning
of Year |
$0
|
-$759
|
$478
|
Net Income (Loss) for Year |
$1,600
|
$2,262
|
$745
|
Loans Payable - End of Year |
na
|
-$1,025
|
$0
|
Reserve
Balance - End of Year |
$1,600
|
$478
|
$1,223
|
(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 this fiscal year are changed
only slightly for the next 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 current
and next fiscal year. Other grants anticipated in the prior 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 current fiscal year to the proposed
budget in the next 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. The originally
budgeted surplus of $1.600 million for the current fiscal year
was earmarked by the Board to offset an initial operating loss
of $759,000, experienced in the startup period ending 6/30/99,
and to provide working capital and a down payment on an operating
reserve for the corporation. The current year surplus is now
projected at $2.262 million as of June 30, 2000, provided that
all budgeted revenue is received. As noted above in the Executive
Summary, delays in reaching agreements with ccTLD and IP
Address Registry managers have raised concern that the budgeted
revenue from those sources may not be received, thus jeopardizing
the corporation's working capital position and threatening its
ability to repay outstanding short term loans, which are due
in August, 2000.
For the next 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 next 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 current 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 current 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 next 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
Introduction. 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 past 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:
Title
|
FTE
|
Incumbent
|
President/Chief Executive
Officer |
1.0
|
M. Roberts (CEO search in
progress) |
Vice President and General
Counsel |
1.0
|
L. Touton |
Senior Policy Officer |
1.0
|
A. McLaughlin |
Manager, Technical Operations |
1.0
|
S. Wolff (recruiting in progress) |
Manager, IANA |
1.0
|
M. Schipper |
Manager, Systems |
1.0
|
(vacant) |
Manager, Business and Finance |
1.0
|
D. Schroeder |
Manager, Publications |
0.3
|
J. Reynolds |
Policy Analyst |
1.0
|
(recruiting in progress) |
Network Administrator |
1.0
|
J. Villaruz |
Registrar Liaison |
1.0
|
D. Halloran |
Registrar Liaison |
1.0
|
(proposed new position) |
Executive Asst to CEO/Board |
1.0
|
(vacant) |
IANA Administrative Assistant |
1.0
|
(recruiting in progress) |
Receptionist |
1.0
|
G. Ruiz |
Office Assistant |
1.0
|
(recruiting in progress) |
Total FY00-01
Budgeted Positions |
15.3
|
|
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
|
Managers |
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 proposed for inclusion 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.
Appendix A --
Budget Process for FY 2000-2001
Included in the October 1999 report of
the Task Force on Funding are the following two recommendations:
"The TFF believes that ICANN's budget
process needs to be improved in future iterations to give the
entities providing the funds -- the domain name and address registries
and registrars -- a formal role in the budgeting process. The
goal of the Task Force's recommendations in this area is greater
accountability, predictability, participation, and transparency
in the budgeting process.
" In addition to the entities directly
contributing the funds to ICANN's cost-recovery program, the
rest of the ICANN community must have a fair opportunity to review
the proposed budget and participate in the consensus-development
process. The Task Force recommends that ICANN require that the
proposed annual budget be placed on the agenda for at least one
Public Forum prior to adoption."
As noted above, these recommendations have
been adopted by the Board and are being used to guide the staff
in developing the next fiscal year's budget. The following specific
actions are planned:
-
Review the financial report for the first
six months of this fiscal year and adopt a revised current year
budget that becomes the base for budget planning for next year.
(This action was completed by the Board at its February 10 meeting.)
-
Convene the consultative group on the
budget process called for in the TFF Report, which was approved
by the Board in Los Angeles. (This action is largely completed,
with participation from the Name and Address Registries and Registrars.)
-
Prepare a staff document on budget priorities
and proposed revisions from this fiscal year to next, and review
it with the consultative group, the Board, and with the public
in Cairo. (A budget staff paper was prepared and posted for public
comment in advance of the Cairo meeting. A presentation on the
budget was also made as part of the public meeting in Cairo.)
-
Publish the proposed FY00-01 budget on
the ICANN Web site in May for public comment.
-
Adopt the budget at the June Board meeting,
following any revisions resulting from consideration of public
comments.
Appendix B --
Midyear Review of FY-1999-2000 Budget
The May 1999 budget for FY99-00, the current
fiscal year, established the following goals and related resource
commitments:
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completion of ICANN organizational arrangements,
such as the seating of the permanent members of the Board of
Directors and recruiting of a permanent President and Chief Executive
Officer.
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completion of contractual arrangements
with registry-administrators.
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continuing accreditation of registrars
for the .com, .net and .org domains.
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study, recommendations and implementation
of policy decisions concerning domain names, trademarks and the
related provisions of the WIPO study.
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study, recommendations and implementation
of policy decisions concerning expansion of the Top Level Domain
(TLD) name space.
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study, recommendations and implementation
of updated arrangements for Internet root servers.
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review and adoption, after public comment
and possible revision, of recommendations received from ICANN
Support Organizations and Advisory Committees.
At midyear, the following progress toward
these goals has been made:
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Nine Directors selected by Supporting
Organizations were seated in November. An At Large Membership
implementation project has been created and will have begun accepting
applications for At Large Membership by the time of the Cairo
meeting. The Board has set an agenda item for the Cairo meeting
to take additional policy actions on At Large Membership and
elections. The Board has established a Search Committee for a
permanent President and Chief Executive Officer.
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The Board has completed agreements with
Network Solutions covering its operation of the registry for
.com, .net and .org, and its accreditation as a competitive registrar
for the same domains. The ICANN staff is in discussions with
operators of the IP Address Registries and with operators of
ccTLD Registries/Registrars on agreements with those organizations.
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ICANN continues an active accreditation
program for .com, .net and .org, with more than 100 companies
having successfully completed the accreditation process.
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Following adoption of a Uniform Dispute
Resolution policy in August, 1999, ICANN has implemented a program
that currently has three providers of dispute services and more
than fifty disputes currently in process before panels convened
under the ICANN UDRP policy and procedures.
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A Working Group of the ICANN Domain Name
Supporting Organization (DNSO) has produced a status report and
recommendations on gTLD issues for the DNSO Names Council to
consider in the near future. The ICANN Board has scheduled a
study session on gTLD issues at its forthcoming Cairo Board meeting.
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The ICANN Root Server System Advisory
Committee has met several times and made recommendations to the
Board on technical improvements to the architecture of the root
server system. These recommendations are supported by the operators
of the thirteen root servers and are in the process of implementation.
ICANN staff, the root operators and the U.S. Department of Commerce
are working together to establish a work schedule and timeline
for policy, administrative and technical changes to the root
server system to meet the objectives established by the U.S.
Government in the DNS White Paper.
Significant actions taken by ICANN Supporting
Organizations and Advisory Committees include:
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The DNSO Names Council, following study
of a referral to it by the ICANN Board of recommendations contained
in the WIPO report on trademarks and domain names, recommended
to the Board the adoption of principles related to a uniform
dispute resolution policy. It has under further study other portions
of the WIPO report dealing with famous names and gTLD expansion.
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The Address Council has been organized
under the terms of the ASO Memorandum of Understanding and intends
to hold its first face to face meeting in May 2000.
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The Protocol Council has been organized
under the terms of the PSO Memorandum of Understanding and does
not currently have a face to face meeting scheduled.
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The Independent Review Advisory Committee
has completed its work and the ICANN Board is expected to implement
its recommendations at the Cairo meeting.
-
The Audit Committee has completed work
on an Audit Committee charter and recommended its adoption by
the Board at the Cairo meeting.
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The Reconsideration Committee has met
several times to consider requests for reconsideration of Board
actions and forwarded recommendations on the disposition of a
number of requests to the Board. The substance of the recommendations
and the related Board actions are documented in the minutes of
several Board meetings which are posted on the ICANN Web site.
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The Government Advisory Committee has
met several times and recently forwarded to the Board a document
concerning Principles for Delegation and Administration of ccTLDs.
The Board will consider the GAC Principles as part of its Cairo
agenda item dealing with ccTLD issues.
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Following a recommendation of its original
Membership Advisory Committee, which has completed work and been
disbanded, an At Large Membership Implementation Task Force is
in the process of being formed and will advise the staff and
Board on remaining issues concerning the structure of At Large
Membership, elections, voting, outreach, etc.
Appendix C --
Budget Issues for FY2000-2001
The following issues, presented as questions,
are among those which the Board and staff have been considering
in the development of the budget for FY00-01. Public comment
on these issues, and others not listed, is encouraged.
Q. Does the preliminary budget properly
support achievement of the basic purposes of ICANN, which are
stated in the Articles of Incorporation as:
"... promoting the global public interest
in the operational stability of the Internet by (i) coordinating
the assignment of Internet technical parameters as needed to
maintain universal connectivity on the Internet; (ii) performing
and overseeing functions related to the coordination of the Internet
Protocol ("IP") address space; (iii) performing and
overseeing functions related to the coordination of the Internet
domain name system ("DNS"), including the development
of policies for determining the circumstances under which new
top-level domains are added to the DNS root system; (iv) overseeing
operation of the authoritative Internet DNS root server system;
and (v) engaging in any other related lawful activity in furtherance
of items (i) through (iv)."
Q. Do the proposed general and specific
budget priorities for FY00-01 relate appropriately to the purposes
of ICANN? Since much of ICANN's ability to meet the stated priorities
is based on staff resources, is the projected staffing of 15.3
full time equivalent positions the appropriate level of staff?
For what reasons should the number of ICANN staff positions be
increased or decreased?
Q. Up to the present time, it has been
assumed that ICANN's Supporting Organizations will conduct their
activities without financial support from the central budget,
relying instead on donated and volunteer services. Is this a
reasonable assumption? If the SO's are to receive financial support
in the annual budget, what means should be used to establish
appropriate support levels and what income sources should be
used to cover the related expense?
Q. Up to the present time, the operation
of the thirteen Domain Name System root servers has been subsidized
by the organizations hosting the machines. Should this volunteer
system be continued in the future, or should some provision be
made in the ICANN budget for partial or full support of root
server operating costs?
Q. Since ICANN's charter is a global one,
the Board has scheduled its quarterly meetings, including public
forums, to rotate among the five major geographic regions defined
in the Bylaws. Should this practice be continued? To what extent
should webcasting and other electronic outreach techniques be
continued or expanded?
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