ICANN | Proposed Fiscal Year 2001-2002 Budget | 14 May 2001

  ICANN Logo

Proposed Fiscal Year 2001-2002 Budget

(14 May 2001)

Proposed Budget—Fiscal Year 2000-2001
(July 1, 2001 to June 30, 2002)


I. Executive Summary
II. Background
III. Proposed Budget for FY2001-2002
     A. Budget Priorities and Issues
     B. Budget Schedule A and Notes
     C. Budget Exhibit 1 - Staff Organization & Requirements

Appendix A - Proposed Methodology for Domain Name Contributions
Appendix B - Budget Process for FY 2001-2002

Click here to enter the Public Comment Forum on Fiscal Year 2001-2002 Budget.

I. Executive Summary

This document contains the proposed budget for ICANN for FY2000-2001, commencing July 1, 2001. It is being submitted to the Board of Directors for action at the Stockholm meeting on June 4, 2001 in accordance with the provisions of Bylaw Article XI, Section 4.

This Proposed Budget has been developed in consultation with the Finance Committee of the Board of Directors and with the Budget Group. It is an outcome of those consultations and of other considerations by now President and CEO M. Stuart Lynn. The Proposed Budget is a refinement of the Preliminary Budget that was posted February 19 by then ICANN President and CEO Michael Roberts.

The Budget calls for Total Expenditures of $5,030,000, a 19.2% growth over the 2000-2001 Budget. However, of these expenditures, $4,530,000 are "Base Expenditures" that reflect the continuing expenses of the Corporation, a 10% growth over 2000-2001. The "Other Expenditures" totaling $500,000 comprise either one-time expenditures, such as the At Large Membership Committee study, or expenditures that are offset by specific revenues, such as local sponsorship of Board meeting activities.

Revenues are budgeted to grow 20% to $6,030,000. The portion of this attributable to "Base Revenues" is $5,455,000, a 13.3% growth. The majority of the "Other Revenues" is attributable to local sponsorship of Board meetings and expenditures from Reserves to support the At Large Membership Committee as indicated above.

The Proposed Budget also includes a contribution to the Operating Reserve of $1 million. This is an increase of $195,000 over the previous budget and is consistent with the Board's goal of achieving an operating reserve approximately equal to one year's expenditures. Additional detail on the Operating Reserve is in Section B.6.

The Proposed Budget also recommends a programmed increase in ICANN's authorized staffing levels, from 15.3 to 21.0. Two of these positions are supported by redirection of funds from the outside professional services category, that is, these positions have no net effect on the budget. The staff increases are required to ensure performance on continuing services and to accommodate new and special priorities for 2001-2002 (see Section III.A on Budget Priorities and Issues).

There may be a considerable difference between budgets and actual operating experience, particularly with respect to potential gaps between budgeted and actual revenues. ICANN's experiences since its startup phase reflect these concerns. An approved budget is not a license to spend. It is an authorization provided that actual revenues materialize to provide for those expenditures. Thus, staff increases and contributions to reserves will only occur if there are sufficient revenues. Actual revenues fell short of budgeted revenues in 1999-2000 and may do so again in the current year.

ICANN is moving from a start-up mode into a more stabilized mode of operation. Up to now it has operated with a small staff, most of whom work extraordinary hours addressing a substantial number of complex issues while maintaining basic services of the organization. No organization can operate in this mode indefinitely. ICANN will always have a small staff, but it needs to be larger than it is today if ICANN is to achieve its basic mission.

With respect to registries with whom ICANN has not yet reached written agreements, the Proposed Budget for 2001-2002 reflects some changes from the prior year based on extensive consultation with those organizations in recent months. The changes are reflected in the budget schedule and are described in Appendix A.

The following sections of the Proposed Budget contain additional details and background information.

II. Background

The ICANN Bylaws require the President of ICANN to prepare and, at least 45 days prior to the commencement of each fiscal year, submit to the Board a proposed annual budget of the Corporation for the next fiscal year. This document contains that proposed budget in fulfillment of the Bylaw requirement.

In December, 2000 the Board appointed a Finance Committee composed of members of the Board to:

  • consult with the President on ICANN's annual budget process;
  • review and make recommendations on the annual budget submitted by the President; and
  • develop and recommend long range financial objectives for ICANN.

This proposed budget has been developed in full consultation with the Finance Committee. The members of the Finance Committee are Linda Wilson (Chair), Jonathan Cohen, Helmut Schink, and Ivan Moura Campos.

In addition to the Finance Committee, the President is advised by the Budget Group, which is comprised of representatives of domain name and address registries and registrars. These organizations contribute the largest share of ICANN's financial support and the Budget Group's interaction with the Finance Committee and the President on budget issues provides special financial expertise during the annual budget process. For FY01-02, the members of the Budget Group are:

  • Dr. W. Black, United Kingdom (ccTLD Registries)
  • Peter de Blanc, Virgin Islands (ccTLD Registries)
  • Bill Semich, WorldNames, Inc. (ccTLD Registries)
  • Sloan Gaon, RegistryPro (Unsponsored TLD Registries)
  • Chuck Gomes, VeriSign Global Registry Svcs (Unsponsored TLD Registries)
  • Steve Juarez, J. Paul Getty Trust (Sponsored TLD Registries)
  • Rob Hall, Momentus.ca (Accred. Registrars)
  • Elana Broitman, register.com (Accred. Registrars)
  • John Tai, Dotster.com (Accred. Registrars)
  • Axel Pawlik, RIPE NCC (RIRs)
  • Robert Stratton, ARIN (RIRs)
  • Paul Wilson, APNIC (RIRs)

This Proposed Budget has been developed as a result of these consultations and of other considerations by now President and CEO M. Stuart Lynn. The Proposed Budget is an outgrowth and refinement of the Preliminary Budget that was posted February 19 by then ICANN President and CEO Michael Roberts.

III. Proposed Budget for FY2001-2002

A. Budget Priorities and Issues

Priorities for 2001-2002 are a combination of highlighted and continuing priorities. In combination, these priorities are directed to supporting constituencies in their endeavors to ensure a stable Internet worldwide, an Internet that can adapt rapidly to incorporate new possibilities and meet new challenges and user demands. The staffing requirements to meet these priorities are defined in the next section.

Highlight Priorities (the numbers are for reference purposes and do not refer to any particular ordering of the priorities):

1. Strengthen administrative and operational services to ccTLD's.

2. Complete implementation requirements for the new gTLD's, monitor the introduction of new registries, and conduct an evaluation of the "proof of concept" results of initial operations and services.

3. Refine the agreement structure with ccTLD's and enter into agreements with those ccTLD's who wish to do so.

4. Complete other outstanding agreements with other ICANN constituencies not already completed in 2000-2001.

5. Complete the At Large study and implement those recommendations from the study that are adopted by the Board.

6. Implement any other governance changes that are approved by the Board, including recommendations from any of the Supporting Organizations.

7. Continue to assist the IP registry community in the deployment of IPv6.

8. Monitor and provide assistance to the development of international domain name extensions to the DNS.

9. Establish the Independent Review Panel as per Board policy.

10. Complete the evaluation of UDRP procedures, policy, and complaint process outcome. Implement any Board approved recommendations for improvement that are made by the Names Council.

11. Stabilize ICANN as an organization by (a) clarifying the organizational structure (b) staffing to meet basic requirements of improved services and mission-imposed responsibilities, and (c) ensuring that responsibilities and authorities are more clearly defined;

12. Normalize financial support for ICANN.

13. Increase the Operating Reserve towards Board approved levels.

14. Implement any Board approved recommendations on long-range planning that result from the Finance Committee's review.

Continuing Priorities:

1. Provide timely and responsive support to the policy-making activities of the Board and Supporting Organization Councils and other advisory bodies and Board Committees as needed, including policy implementation, preparation of legal agreements and other materials, analysis as required etc.

2. Ensure responsive services to meet operational commitments of service programs, including address registries, name registries, IANA, root servers, registrar accreditation, etc.

3. Implement agreements with constituent bodies to formalize the delegation of ICANN responsibilities.

4. Conduct an active education and outreach program that supports public participation in ICANN policy-making activities, including public meetings, electronic forums, publications (hardcopy or electronic), accessible website etc.

5. Ensure efficient and effective planning and implementation of four ICANN meetings a year at locations approved by the Board.

6. Operate technical services as required to meet community obligations such as registrar data escrow services and the root server distribution master as well as to support internal operations.

7. Fulfill other requirements imposed by the Memorandum of Understanding with the US Government as prerequisites to the full internationalization of ICANN.

8. Execute the general management and administrative responsibilities of the corporation in an efficient and effective manner.

B. Proposed FY2000-2001 Budget Schedule A and Notes

Summary. The proposed budget (see Schedule A) shows a year to year increase in total expense of $811,000, or 19.2%, to $5.030 million. Added to this is a planned increase in reserve contribution of $195,000, or 24.2%, to $1.0 million, producing a need for total revenue to recover expenses and reserve contribution of $6.030 million.

Expenditures and revenues, however, are divided into two categories: "Base" and "Other". "Base" reflects the true continuing operations of ICANN, whereas "Other" reflects either one-time expenditures (such as the At Large Study), or expenditures that are essentially a pass through matched by designated external funds - such as external sponsorship for specific local activities associated with quarterly meetings where the activity would not occur if the sponsorship funds were not obligated.

With these designations, "Base" expenditures are budgeted to increase 10%, matched by an increase in "Base" revenues of 13.3%. The difference is attributable to an increased contribution to the reserve.

Internet Corporation for Assigned Names and Numbers
FY01-02 Proposed Budget - Schedule A
Please See Accompanying Notes
All Amounts in Thousands of U.S. Dollars


FY00-01 Budget
Approved 4 Jun 00

FY00-01 Budget
12 Months Projected Actual as of 31 Mar 2001

FY01-02 Proposed Budget
as of 14 May 2001

FY01-02 Proposed Budget – Changes as of 14 May 2001


Base Expenditures
Staff - full time equivalent 15.3 15.3 21.0 5.7   (a)
Personnel $1,611 $1,220 $1,692 $81 5.0% (a)
Personnel – Add'l staff





Professional & Technical Services 984 1,020 734 -250 -25.4% (b)
Board & Public Meetings 600 525 450 -150 -25.0% (c)
Other Travel & Meetings 420 320 425 5 1.2% (d)
Admin & Systems 504 680 704 200 39.7% (e)
Subtotal – Base Expenditures $4,119 $3,765 $4,530 $411 10.0%  
Other Expenditures
Public Meetings – sponsored events





At Large Membership Proj & Study 100 450 250 150   (f)
Subtotal - Other Expenditures $100 $675 $500 $400    
Total Expense $4,219 $4,440 $5,030 $811 19.2%  
Base Revenue
TLD Name Registries & Registrars            
Unsponsored (7) $2,390 $2,390 $3,009 $619 25.9% (g)
Sponsored (3) na na 150 150   (g)
Country Code (246) 1,496 1,277 1,300 -196 -13.1% (g)
Subtotal - DN Registries/Registrars $3,886 $3,667 $4,459 $573 14.7%  
IP Address Registries 428 428 496 68 15.9% (h)
Registrar Accreditation Fees – annual





0.0% (i)
Subtotal - Base Revenue $4,814 $4,620 $5,455 $641 13.3%  
Other Revenues
Registrar Accred. Application Fees 60 70 25 -35 -58.3%  
Public Meetings – sponsored events na 225 250 250    
At Large – from grants & reserves 100 450 250 150 150.0%  
Contributions & Other 50 50 50 0 0.0%  
Subtotal - Other Revenues $210 $795 $575 $365 173.8%  
Total Income $5,024 $5,415 $6,030 $1,006 20.0%  
Budgeted Contribution to Operating Reserve $805 $975 $1,000 $195 24.2% (j)
Special Reserve for New TLDs
Expense na $1,500 tbd     (k)
Application Fees na $2,200 tbd      
Year-end balance   $700        

Notes to Schedule A

Notes to Proposed Budget.

1. General. A provision for increased costs in salaries, benefits, travel, meetings and administration of five percent has been included in the proposed budgeted expenditures.

2. Base Expenditures

(a) Personnel. Exhibit 1 in the following section contains detail on proposed 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.

Assuming that currently vacant staff positions are filled at the midpoint of existing ranges, total personnel costs are projected at $2.217 million, an increase of $606,000, which is composed of $81,000 in cost rise for salaries and benefits, and $525,000 in new budget authority for five new positions, and the upgrading and revising of an existing 30% time position. This amount may vary up or down somewhat based on actual recruiting experience in the course of the fiscal year.

As a result of a review by the incoming President and Chief Executive Officer, a number of new staff positions are being proposed for the next fiscal year (see C. Budget Exhibit 1 - Staff Organization & Requirements). When fully implemented, the proposed increases would raise the full time equivalent staff positions from 15.3 to 21.0.

(b) Professional & Technical Services. This category includes outsourcing agreements for legal services, public education and outreach and a small amount for purchased technical services. Continuing a trend from the prior year, the budgeted expense has been reduced by $250,000 to reflect the transfer of funds to the personnel budget to cover the positions of associate general counsel and of communications director.

(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 periodic teleconferences. Included are travel, hotel, meeting room, technical and administrative support, etc. Partly as a result of an effort to contain costs of ICANN's quarterly meetings, there is now an active meeting sponsorship effort conducted by the meeting local host organization and by ICANN staff. This support has enabled the quarterly meetings to continue without meeting fees and with a higher level of amenities than the base budget would provide. The portion of the public meetings covered by sponsorships is now shown in the "Other" expenditure and revenue categories on the budget schedule. It is estimated that meeting sponsorships in FY01-02 will be at the level of $250,000. The line item for the portion of Board and public meeting expense borne by the continuing budget shows a decrease of $150,000, which is attributable to the sponsorship program and to continuing cost containment efforts.

(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 $425,000 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 and Systems. This cost category includes all of the non-personnel general and administrative expenses associated with ICANN activities, along with computer facility, hardware, software, maintenance and operating costs. Previous budget savings in this category will disappear in FY01-02 as a result of full staffing. During the course of the current year, the systems costs are increasing to reflect implementation of the root server systems plan, including a second computer facility, backup hardware and power, redundant connectivity, and 7/24 operational support. For the next fiscal year, an estimated annualized cost of an additional $200,000 has been included in the budget.

3. Other Expenditures

(f) At Large Membership Project and Study. At its recent Melbourne meeting, the ICANN Board allocated $450,000 in reserve funds to cover the costs of the study of At Large membership which is currently in progress. Of the total amount, $200,000 will be expended in the current fiscal year (in addition to $250,000 in one time funds already expended on the At Large election earlier in the fiscal year), and $250,000 will be expended in the next fiscal year during the months July through November.

4. Revenue to Support Base Expenditures

(g) Domain Name Registries and Registrars. The format of these line items has been revised from previous budgets to reflect the changes resulting from the introduction of new TLD registries. The term Unsponsored registries now includes biz, com, info, name, net, org, and pro. The term Sponsored now includes aero, coop, and museum. Apportionment of revenue contributions to domain name registries has been the subject of special study during this year's budget process, and the basis for contributions has been substantially revised in the proposed budget. Detail on this aspect of the budget is contained in Appendix A. Total revenue from domain name registries and registrars is budgeted at $4.459 million, an increase of 14.7% or $573,000, of which $490,000 is provided by contributions from new TLD registries. It should be noted that introduction of new TLD's, coupled to the revisions in the basis for apportionment, results in a decrease in the proportion of the total amount budgeted to come from country code registries of 8.5%, from 34.7% to 26.2%.

(h) IP Address Registries. Under current budget policy, 10% of the total base revenue requirement from domain name and address registries is allocated to the IP Address registries. For the next fiscal year, this results in a total amount of $496,000, which is an increase of $68,000 or 15.9%.

(i) Registrar Accreditation Fees - Annual. Base revenue from annual accreditation fees paid by domain name registrars is budgeted to remain level for the next fiscal year. Although accreditation activity has been high in the past year, the current uncertainty in this Internet business segment suggests that a cautious approach to projecting revenue be used. For FY01-02, the annual accreditation fee will be revised to take account of the fact that registrars may now choose to be accredited for more than one registry. The fee schedule is being revised - see <http://www.icann.org/stockholm/registrar-fee-topic.htm> - to provide that the annual fee, including accreditation for one registry, is $4,000. Accreditation for additional registries will cost $500 each. This replaces the current fee of $5,000 per year for com/net/org combined.

5. Other Revenues.

This category includes fees for processing of accreditation applications (the application fee is proposed - <http://www.icann.org/stockholm/registrar-fee-topic.htm> - to increase from $1,000 to $2,500, but overall revenues are projected to decline because of a reduction in the number of applications received); for sponsored events at public meetings; an allocation of reserves by the ICANN Board to cover the costs of the current study of At Large membership; and unrestricted contributions and miscellaneous items. A total of $575,000 is anticipated from these sources in the next fiscal year.

6. Budgeted Contribution to Operating Reserve.

(j) At the end of the previous fiscal year on June 30, 2000, ICANN's Net Asset, or Reserve, position was $1.958 million. Of this amount, approximately $500,000 was in doubtful accounts receivable, leaving an available reserve of approximately $1.5 million, of which $780,000 was cash. In this fiscal year, the projected reserve contribution at June 30, based on current information, is $975,000. However, this reserve projection is based on payments from country code domain name registries of $1.277 million and IP Address registries of $428,000, and these registries have not yet signed agreements committing them to this total revenue amount.

The Board has established a financial target of maintaining one year's operating funds in reserve, or approximately $4.5 million. The budgeted increase in reserve contribution, $195,000 or 24%, is intended to shorten the time required to achieve this level of reserves, which was originally intended to be three years from inception in 1998.

7. Special Reserve for New TLD's

(k) Top Level Domain Name Registry Application Fees. ICANN is conducting a "proof of concept" introduction of new sponsored and unsponsored top level domain name registries. Whether the Board will be able to consider additional registry introductions in FY01-02 is not known at this time. Also unknown at this time is the extent to which there will be any funds remaining in the new TLD application fees account at the conclusion of the introduction phase. Application fees received are intended to cover all costs of the introduction.

C. Budget Exhibit 1 - Staff Organization & Requirements

1. Introduction

ICANN is moving from a start-up mode into a more stabilized mode of operation. Up to now it has operated with a small staff, most of whom work extraordinary hours addressing a substantial number of complex issues while maintaining basic services of the organization. No organization can operate in this mode indefinitely. Services to the community are not rendered at the level that are expected; deadlines slip; work is not completed in as thorough a manner as required; demands exceed the ability to respond. The organization is vulnerably dependent on a few key individuals without adequate backup. The workpace is frenetic and interrupt-driven, loaded with sudden additional priorities, such as governmental hearings sprung with little notice.

ICANN will always have a small staff, but it needs to be larger than it is today if ICANN is to achieve its basic mission. A key objective, therefore, for FY2001-2002 is to enlarge the staff so that services can be credibly maintained and the basic mission accomplished. Some expansion is predicated on transferring funds from external services to staffed positions, but a level of external services is still maintained to cushion spikes in demand and to provide for future reductions in expenditures once certain basic tasks are accomplished, such as signed agreements.

2. Staffing Levels

(a) Currently filled

  • President and CEO: M. Stuart Lynn
  • Vice President and General Counsel: Louis Touton
  • Senior Policy Officer: Andrew McLaughlin
  • Manager, IANA Services: Michelle Schipper
  • Manager, Business & Finance: Diane Schroeder
  • Technical Operations Coordinator: John Crain
  • Network Administrator: Jim Villaruz
  • Chief Registrar Liaison: Dan HalloranRegistrar Liaison: Ellen Sondheim
  • Finance Administrative Assistant: Monique West
  • IANA Administrative Assistant: Lauren Graham
  • Administrative Assistant: Bill Huang

(b) Budgeted but currently vacant

  • Technical Systems Manager (vacant)
  • Policy Analyst/Manager (vacant)
  • ccTLD Administrative Assistant (vacant)
  • Webmaster (30% - see below; vacant)

(c) Requested Staff Additions in FY01-02 budget

  • Associate General Counsel
  • Communications Director
  • cc TLD Registry Liaison/Policy
  • gTLD Registry Liaison/Administrator
  • Technical Systems
  • Webmaster (additional 70% to create a fulltime position)

3. Staff Expansion for FY01-02

(a) Positions budgeted by funds reallocation:

It is proposed to reallocate $250,000 of funds allocated within the existing budget for outside Professional Services to fund an Associate General Counsel and a Director of Communications. The President believes that funds now spent on outside counsel and public relations services can be better utilized through hiring ICANN staff. Thus, positions to be created through this reallocation are:

  • An Associate General Counsel is urgently need to provide additional legal services in negotiating and preparing contracts and agreements with registries and registrars, particularly ccTLD registries, and clearing the logjam that now exists.
  • A Director of Communications is required to provide services to the community, the press, and the public at large that are required of an organization as much in the public eye as ICANN, including supervision of the ICANN website to ensure that it is appropriately structured.

(b) Additional positions requested within the proposed budget expansion:

  • ccTLD Registry Liaison/Policy: Currently Herbert Vitzthum provides part-time consulting services. This needs to be converted to a full-time employment or consulting arrangement.
  • gTLD Registry Liaison/Administrator: An additional person is required to service the new registries associated with the expansion of gTLD's.
  • Systems staff: Additional technical staff are urgently needed to support the operational and systems workload imposed by assuming the InterNic function from Verisign; implementing the distribution master for root servers; implementing data escrow support for registries; and providing 24/7 supervision. At this point one additional technical systems person is proposed but this may need to be expanded.
  • Webmaster (additional 70% to create a fulltime position): The ICANN Website is a major site that is the nexus of communications with interested communities and the public at large; and for receiving comment and counsel from the community. It is now maintained by senior staff whose time needs to be better utilized. The website needs to be enhanced and reorganized to simplify navigation. A webmaster, working under the supervision of the Director of Communications (see above) is urgently required.

Although these positions are provided for within the proposed budget, they would not be recruited until sufficient funds are received from the indicated revenue sources to cover their costs.

The above, in the judgment of the President and CEO, represents a modest and reasonable expansion of ICANN staff to ensure that services are delivered to the satisfaction of the communities served and that ICANN can fulfill its responsibilities and basic mission. It does not provide for any expansion in those responsibilities or additional services that the community may require.

4. 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

5. Position Descriptions

President and Chief Executive Officer (M. Stuart Lynn)
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.

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, IANA Services (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.

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.

Technical Operations Coordinator (John Crain)
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.

Network Administrator (Jim Villaruz)
Responsible to Technical Operations Coordinator for operation of corporate networks, server communications, electronic mail and websites. Coordinates computer security plan and related monitoring.

Chief Registrar Liaison (Dan Halloran)
Responsible to Vice President and General Counsel for administration of registrar accreditation program, including compliance issues.

Registrar Liaison (Ellen Sondheim)
Assists the Chief Registrar Liaison in administration of the registrar accreditation program.

Finance Administrative Assistant (Monique West)
Provides administrative support to finance and accounting functions, including cash management, general ledger transactions and reporting, registry and registrar invoicing and reporting, and other tasks as required.

IANA Administrative Assistant (Lauren Graham)
Performs IANA administrative support functions under the supervision of IANA Manager.

Administrative Assistant (Bill Huang)
Provides general administrative support to program managers as required.

Manager, Technical Systems (vacant)
Responsible to CEO for technical architecture and operational 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.

Policy Analyst (vacant)
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.

ccTLD Administrative Assistant (vacant)
Performs a variety of liaison functions directed to ccTLD support.

Appendix A - Proposed Process for Allocating Revenue Contributions to Domain Name Registries

The FY2001-2002 budget contains specified revenue contribution amounts to be allocated to Domain Name Registries. The following paragraphs describe the approach that is proposed to be used to allocate these funding requirements. This approach is consistent with previous discussions with the Finance Committee and the Budget Group, but also clarifies and amplifies those discussions.

A. General

1. Where agreements exist. Where agreements exist with specific TLD Registries and Registrars, the formulas specified in the agreements will be followed and the TLD will be invoiced accordingly. To the extent that contribution formulas contained in existing, or to be executed, agreements vary from the formulas contained in this Appendix, the language in the agreements is controlling. The intent is to bring all agreement language into compliance with the procedures described here as soon as possible.

2. Where agreements do not yet exist. Where agreements do not yet exist, the TLD Registry will be asked to make a contribution. A suggested figure for the contribution will be the amount calculated according to section B below. The request for contribution will be accompanied by a letter from the ICANN President explaining the purposes and benefits of ICANN.

The TLD Registry may make any contribution it considers appropriate in relation to the suggested amount. Those who do not require an invoice may pay directly. Those who require an invoice will be asked to sign a "Pledge Form" indicating how much they plan to pay. ICANN will then invoice the TLD Registry against that Pledge. [This procedure for voluntary contributions where agreements have not yet been reached applies to the IP Address Registries as well as to Domain Name Registries.]

If the total contribution received in any one year exceeds the amount which registries in a given tier (see section B below) are budgeted to pay, any additional amount will be applied as follows:

  • any excess will first be applied against under-recovered amounts (with respect to the budget) from all registries for prior periods;
  • any overage (with respect to the budget) will be carried forward and credited against the total amount to be contributed or paid in the following year.

In the foregoing and in what follows, the phrase "contribute or pay" means that the word "contribute" applies where agreements are not in place; and the word "pay" applies where an agreement is in place and a domain name or address registry or registrar would be invoiced according to the agreement.

B. Domain Name Registry Contribution Calculations

1. The total budgeted revenue to be recovered from domain name registries and registrars is the result of apportionment of the total base revenue requirement for the fiscal year to all revenue classes in the base budget category according to the consensus budget development process. See Table 1 below and Budget Schedule A for the amounts proposed to be recovered in fiscal year FY01-02.

2. Proportional registry size, unless some other measure is adopted through the consensus budget process, will be the basis for actual or suggested (according to whether or not they are under agreement) revenue contributions from domain name registries. Proportional registry size is calculated, unless some other measure is adopted through the consensus budget process, by taking the total number of domain names in the respective registry databases as a percentage of total domain names registered in all domain name registries. For registries under agreement, the computation of relative registry size will be made as of the first day of the financial year. The computation will be made as of the first day of each fiscal year as a basis for calculating suggested contributions for those registries not under agreement, and for determining whether a registry falls within Tier 1 or Tier 2. (see below). Domain name registries not under agreement who pledge contributions shall have the option of receiving invoices against those pledges quarterly or annually.

3. Domain name registries are divided into three tiers, according to registry size, as follows:

Tier 1: Registries having fewer than 5,000 registered names.
Tier 2: Registries with 5,000 or more registered names, but fewer than 50,000.
Tier 3: Registries having 50,000 or more registered names.

Unless otherwise specified in agreements,1 Tier 1 registries are expected to contribute or pay $500 each. Tier 2 registries are expected to contribute or pay $5,000 each. The 5,000/50,000 tier boundaries as well as the fixed amounts to be paid will be reconsidered annually. The foregoing figures will apply to FY2001-2002.2

4. For FY01-02 only, the seven new gTLD registries will have an amount to be paid calculated according to a formula with a fixed component and a variable component, since those registries will be commencing operations during the next fiscal year. The share of the total revenue from the seven new registries is budgeted at $340,000 from the four unsponsored registries and $150,000 from the three sponsored registries, but this share may increase depending on quarterly computations of registry size as applied to individual registries. The amount due from these registries in any quarter will be the larger of (a) the quarterly fixed fee, or (b) the registry's proportional (according to registry size) amount of the total amount for that quarter budgeted for all name registries.

5. The amount to be apportioned to Tier 3 registries is determined by subtracting from the total domain name registry contribution those amounts contributed by the Tier 1 and Tier 2 registries. In addition, for FY01-02 only, the budgeted amounts from the seven new registries are also subtracted. The remainder is allocated to individual registries based on their proportional size relative to all other Tier 3 registries.

Table 1 - Domain Name TLD Registry Contribution Amounts - FY01-02


Tier Size

# Registries

Registered Names (000's)


Total Contribution

< 5K
186 84 $ 500 $ 93,000

5K to 50K
39 573 5,000 195,000

50K & over
31 38,457 na 3,681,000


New Sponsored and Unsponsored TLD's (7)
Total Domain Name Cost recovery per Budget Schedule A

N.B. Table 1 based on reliable but unverified registry size information as of March, 2000

C. Examples:

As examples of the foregoing (assuming that number of domain names is used as a surrogate for registry size - see B.2 above):

  • A ccTLD not under agreement with ICANN with 2,700 domain names (Tier 1) recorded in their registry database as of July 1, 2001 will be asked to contribute $500 to ICANN in 2001-2002. The ccTLD can choose to pledge this amount, less, or more. The ccTLD will be invoiced against their pledge quarterly or annually, as the ccTLD chooses.
  • If the above ccTLD is under agreement with ICANN, the terms of that agreement will apply.
  • If the ccTLD in the first example has 15,000 names (Tier 2) in their registry database as of July 1, 2001, the ccTLD will be asked to contribute $5,000. The other parts of the above examples will apply.
  • A ccTLD not under agreement with ICANN with 900,000 names (Tier 3) in their registry database as of July 1, 2001 will be asked to contribute (see Table 1) (900/38.457) x $3,681,000, that is, $86,145. The ccTLD may choose to pledge this amount, or more or less. If the ccTLD chooses to pay $88,000 (say), they may choose to pay this amount in one lump sum, or to be invoiced in four quarterly payments of $22,000.

ccTLD's are used in the foregoing examples since all gTLD's are expected to be under agreement with ICANN, and those agreements will be controlling. The agreements, however, are expected to follow the formulas for Tier 3 domain name registries described in Section B above.

1. Agreements with the new gTLD registries specify larger amounts during the first year of operation.

2. The formula will also be used as a basis for contribution requests for 2000-2001

Appendix B - Budget Process for FY 2001-2002

The ICANN Bylaws require that the President submit a proposed budget to the Board of Directors at least forty-five days in advance of the beginning of the fiscal year, or approximately May 15. For FY2001-2002, the Board expects to act on the proposed budget at its meeting of June 4, 2001 in Stockholm.

The ICANN annual budget process follows three general cycles. The first involves review of financial results for the first six months of the fiscal year, and the development of an updated forecast of actual results for the entire current fiscal year. This cycle is nominally completed in January.

The second cycle includes the preparation of a Preliminary Budget for the next fiscal year, based on the updated forecast for the current year, plus other known variables affecting the next year's budget. The preliminary budget document then becomes the basis for general review and discussion at the first quarterly ICANN meeting of the calendar year. This task was completed at the March Melbourne meetings.

The third cycle includes preparation of a Proposed Budget for the next fiscal year, based on results of review of the Preliminary Budget. The Proposed Budget, after internal review and development by ICANN staff, the Budget Group and the Finance Committee, is posted for public comment three weeks before the second quarterly meeting, or approximately May 14.

The Proposed Budget goes through its final review, revision and adoption process by the Board at its second quarterly meeting, which is expected to be on June 4, 2001 in Stockhom.

The calendar of budget related meetings and teleconferences for the FY01-02 budget is as follows. The Finance Committee meets as needed during the budget process in addition to the meetings listed below.

January 25 - FY2000-2001 Midyear Budget Report Available (COMPLETED)
January 29 - Budget Group Teleconference #1 - (COMPLETED)
February 7 - Finance Committee review of Preliminary Budget draft (COMPLETED)
February 9 - Draft of Preliminary Budget to Budget Group for comment (COMPLETED)
February 15 - FY00-01 Midyear Financial Statements posted (COMPLETED)
February 19 - Preliminary FY01-02 Budget Document posted for Public Comment (COMPLETED)
March 9 - Joint Meeting of Finance Committee and Budget Group in Melbourne (COMPLETED)
March 12 - Presentation on FY01-02 Preliminary Budget at Public Forum in Melbourne (COMPLETED)
April 5 - Budget Group Teleconference #2 (COMPLETED)
May 3 - Budget Group Teleconference #3 (COMPLETED)
May 14 (About) - Proposed Budget for FY01-02 posted for Public Comment
May 31 - Joint Meeting of Finance Committee and Budget Group in Stockholm
June 3 - Presentation on FY01-02 Proposed Budget at Public Forum in Stockholm
June 4 - ICANn Board plans to adopt FY01-02 Budget
July 1 - New Fiscal Year Commences

Click here to enter the Public Comment Forum on Fiscal Year 2001-2002 Budget.

Comments concerning the layout, construction and functionality of this site
should be sent to webmaster@icann.org.

Page updated 04-June-2001
(c) 2001 The Internet Corporation for Assigned Names and Numbers All rights reserved.