Board Finance Committee (BFC) Minutes 27 November 2012

BFC Attendees: Sébastien Bachollet, Cherine Chalaby (Chair), Chris Disspain, and George Sadowsky

Other Board attendees: Steve Crocker

Staff Members Present: Akram Atallah – Chief Operating Officer, Xavier Calvez – Chief Financial Officer; Shawn Capistrano, Samantha Eisner, Ken Redhead, Diane Schroeder, and Amy Stathos.

Invited Guest: Member of company helping develop investment strategy

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The following is a summary of discussions, actions taken and actions identified:

1. BFC 2013 Schedule: The BFC reviewed its FY13 work schedule and the status of work indicated on the plan.
2. FY13 Budget Recap: The BFC reviewed the FY13 Budget recap.
3. Contingency Fund: The BFC reviewed the status of the Contingency Fund.
4. Operating Fund: The BFC reviewed the operating fund status.
5. Reserve Fund: The BFC reviewed the status of the reserve fund.
6. New gTLD Account: The BFC reviewed the status of the New gTLD Accounts.
7. Location of ICANN Meeting, November 2013: The BFC reviewed the budgetary implications for the November 2012 ICANN meeting in the Latin America/Caribbean region and staff's budget recommendation not to exceed US$2.4 million. The BFC noted that the Public Participation Committee (PPC) will be reviewing the location recommendation within the next week. The BFC also discussed the rationale behind the BFC reviewing and recommending individual meeting budget caps, and considered requesting the Board for a resolution regarding contracting and disbursement authority. The BFC noted that a clear process line is necessary for the consideration of meeting location and budget issues, particularly when meeting selections are occurring prior to the release of the budget for a particular fiscal year. The BFC agreed to recommend that the Board approve a resolution that the expenditures for the November 2013 meeting not exceed US$2.4 million. The BFC's recommendation is subject to the PPC's recommendation of the identified meeting location.
   • Actions:
     • Staff to draft a process for the approval of upcoming meeting locations and expenditures.
     • Staff to forward the BFC resolution to the Board for action.
8. New gTLD Investment Strategy: The BFC discussed the next steps for the handling of the gTLD-related funds after the FDIC insurance on those non-interest bearing accounts concludes on 31 December 2012. Staff described the work with an advisor on an investment strategy, while the advisor provided an overview of the proposed investment policy and answered BFC members' questions. An RFP has been issued to several firms, and selection is anticipated by the end of December 2012.
   • Actions:
     • Staff to revise the document describing the proposed investment policy to reflect the discussion and to circulate the revised version by 3 December 2012.
     • BFC members to review and consider the revised document for presentation to the Board.
     • Staff to schedule a future BFC meeting for consideration of the policy and the document, and to make a recommendation that the Board approve a proposed New gTLD Funds investment strategy.
9. Quarterly Reporting: The BFC agreed that certain BFC members will work with staff to review the proposed reporting, which the BFC will consider at a future meeting. Staff also provided a brief update on the spreadsheet document for quarterly reporting on the New gTLD Program based of a spreadsheet proposed by the Chair of the Board.
   • Actions:
     • Staff to circulate revised reporting templates after discussions with BFC members.
     • The CFO to review the spreadsheet on New gTLD reporting with the Chair of the Board and update the document accordingly.