Published on 03 February 2017
AC Attendees: Steve Crocker, Asha Hemrajani, Erika Mann (Chair), and Mike Silber
AC Member Apologies: Bruno Lanvin
ICANN Executives and Staff Attendees: Susanna Bennett (Chief Operating Officer), Michelle Bright (Board Operations Content Manager), Xavier Calvez (Chief Financial Officer), John Jeffrey (General Counsel and Secretary), Vinciane Koenigsfeld (Board Operations Content Manager), Becky Nash (VP, Finance), Wendy Profit (Board Operations Specialist), Cherrie Teves (Controller), and Amy Stathos (Deputy General Counsel)
Invited Guests: Representatives from independent audit firm BDO, and Gary Rolfes – independent financial advisor to the Audit Committee
The following is a summary of discussions, actions taken and actions identified:
Auditor’s Report on FY16 Audit – As an introduction, it was explained to the Audit Committee (AC) that this meeting is for the auditors to provide a final report on the FY16 Audit. It was further noted that the independent financial advisor to the AC was also in attendance. The BDO partner reported that the FY16 Audit is substantially completed and will be finalized following the AC’s review and approval. The expectation is that BDO will issue an unmodified opinion on the consolidated financial statements and release its report by the end of October 2016. BDO noted that ICANN’s FY16 accounting practices, policies, and estimates are consistent with the prior year. In conducting the FY16 Audit, BDO reviewed, among other things, ICANN’s revenue recognition, deferred revenue, general and administrative expenses, accounts receivable and allowances, investments, property and equipment, and cash and cash equivalents. The AC asked whether and how ICANN’s international offices are reflected in the FY16 Audit. BDO responded that information from the international offices is provided on a monthly basis, and is consolidated into and reflected in ICANN’s overall operations. BDO also noted that the Singapore office is required to perform a separate statutory requirement audit. The AC further asked how auction proceeds are recorded, and it was explained that, from an accounting standpoint, the triggering event to record auction proceeds is the date when the proceeds were collected. Any subsequent modification to certain auction proceeds will be noted at the date of such occurrence. The AC was then presented with an overview of the audited financial statements, which comprise the statements of financial position as of June 30, 2016 and 2015 and the related statements of activities and cash flows for the years then ended, and the related notes to the financial statements.