[NCUC-DISCUSS] Replenishment Strategy for the ICANN Reserve Fund Webinar 1 March 2018 1700 UTC

hfaiedh ines hfaiedh.ines2 at gmail.com
Mon Feb 26 20:14:52 CET 2018


Thanks Thato, added it to my agenda.

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2018-02-26 17:30 GMT+01:00 Kris Seeburn <seeburn.k at gmail.com>:

> Thanks for the mail and the explanations. I have varied answers to those
> explanations and am sure can be better run. I’ve already gone through the
> whole document. We may be able to give some feedback.
>
> Thanks again.
>
> On Feb 26, 2018, at 20:16, Thato Mfikwe <thatomfikwe at gmail.com> wrote:
>
> Hi Kris,
>
> Just to comment on your statement (apologies for ll this color contrasts
> and the lengthy response):
>
>
>
> *1. ICANN model, how the resources are allocated and why?*
> ICANN’s primary source of funding comes from fees it collects from gTLD
> registries and registrars. Therefore, ICANN’s financial stability is
> entirely dependent on the registration of domain names.  These fees were
> collected on a quarterly basis from primarily a small group of large
> registries and registrars.   The quarterly collection meant that delays in
> payments would give ICANN issues with its cash flow and its ability to pay
> wages and other expenses.
>
> ICANN decided therefore to set up a Reserve Fund in 2007 in order to
> reduce its dependence on the timing of fee collections, as well as to
> provide it with sufficient financial resources to enable it to defend its
> multi-stakeholder governance model against possible litigation. In October
> of 2012, the ICANN Organization conducted a benchmarking study on how
> not-forprofit and other organizations set their Reserve Funds, which was a
> basis for a 12 moths operational expense coverage although the GNSO feels
> that this need to increase to 24 months according to their latest comment
> <https://gnso.icann.org/en/drafts/draft-comments-icann-reserve-fund-27nov17-en.pd>.
>
>
>
> *Allocation of the Reserve Fund*In 2014, the Reserve Fund stood at US$ 85
> million corresponding to 11.5 months of operating expenses. Without any
> withdrawals and taking into account the repayment of new gTLD historical
> development costs and interest earned. The Reserve Fund should be
> approximately  US$94 million by end June 2018.
> -  withdrawals from the Reserve Fund have been made since 2015 for the
> purpose of paying for the IANA Stewardship transition expenses ($36
> million).
> - on 30 June 2017, the Reserve Fund was US$ 62 million and the Board
> Finance Committee had approved, during its meeting held on 22 September
> 2017, a recommendation to the Board to allocate an additional US$5 million
> to the Reserve Fund from ICANN’s operational surpluses which was be
> considered in October 2017 at Abu Dhabi.
>
> *This trend of coordination needs to improve as it is difficult to track
> how the Reserve Fund is used or funded on an ongoing basis, hopefully we
> will get clarity in the webinar on the 1st of March.*
>
> *YEAR                   BALANCE                            EXPENSES
> COVERED       *
> June 2014            $85 million - actual              11.5 months
> June 2017            $62 million - actual
> June 2018            $58 million - estimate           4.8 months
>
> Between 2014 and 2017, there were payments of IANA transition expenses
> ($36 million) from the Reserve Fund and on September 2017 there was an
> allocation of $5 million from 2017 operational surpluses. Net withdrawals
> being $31 million and currently standing at $62 million ($94 million - $31
> million = +/- $62 million) by 12 October 2017.
>
> *2. Risks and projects that work*
> The analysis of ICANN's 2019 FY operational plan & budget is underway,
> providing a good opportunity for comment and propose changes to ICANN's
> spending priorities on portfolios and projects. It would also be helpful if
> members can start reviewing ICANN operational plans so that we can provide
> informed recommendations in regard to listed projects and portfolios listed
> on ICANN operational plans.
>
>
> *3. Long term strategy and existence.*
>
> I have managed to assess the allocation of resources to AC's and SO's
> through 2018 additional budget request and below are the findings, however
> I have not been able to identify the role of NCSG in ICANN operational
> plans. Some of the questions relating to long-term sustainability will
> hopefully be addressed during the webinar.
>
>
> Summary of ICANN 2018 FY additional budget request approval from community
> ICANN groups listed budget allocations  Listed allocations   Declined
> request / no support   Approved by Requiring further ICANN engagement  Unlisted
> allocations& project description
> SO's  $                                    250 800,00, ho
>
> GNSO  $                                    107 400,00 0   PDP WG Chair
> travel funding - ICANN 61, 62 & 63 and GNSO Council Strategic Planning
> Session
> BC  $                                       16 200,00 2 2 Leadership
> development & support (developing countries - 2 regional participants for
> ICANN 60, 61 & 62)
> NCUC  $                                       32 000,00 3 2 Policy
> Advocacy training and 3 members of NCUC panelists @ IGF
> NCSG/NPOC  $                                       66 000,00 0 0 Capacity
> building - NCUC and NPOC joint request for a program to create future
> leaders @ ICANN 61
> NCSG  $                                       13 000,00 1 4 IGF workshop
> on cybersecurity and DNS (2 panelists from NCSG)
> NPOC  $                                         8 100,00 0 0 Piloted by
> members of CSG, leadership dev and support for  1 participant from a
> developing region ICANN 60-62
> ISPCP  $                                         8 100,00 0 2 Not
> utilised in 2017,  for a pilot travel support for local businesses
> leaders in developing regions
> RrSG, ASO & ccNSO  -  1 for RrSG 1 for RrSG RrSG support for video call
> steam will be implemented in ICANN meetings, ASO and ccNSO did not make
> budget requests
> AC's  $                                    215 000,00
> GAC  $                                       81 000,00 0 0 Government
> travels for the GAC HLGM - High Level Government Meeting
> SSAC  $                                         4 000,00 0 0 Travel for
> outreach at a non IGF event (an interesting potential innovation to
> outreach efforts)
> RSSAC  $                                       10 000,00 0 0 Strategic
> outreach for co-chairs (Up to 3 joint outreach trips for co-chairs or up to
> 6 individual outreach trips)
> At-large  $                                       58 000,00 2 3 RALO
> engagement activities, global capacity building at IGF, & tracking of ALAC
> advise to the Board & responses to ICANN public comments
> APRALO  $                                         8 000,00 0 5 Leadership
> participation at the IGF (2 panelists from APRALO)
> AFRALO  $                                         8 000,00 0 1 Workshop
> at the IGF (2 workshop panelists from AFRALO)
> EURALO  $                                         8 000,00 1 0 IGF
> workshop on the public interest (2 panelists from EURALO)
> LACRALO  $                                       20 000,00 2 1 Creating
> leaders at LACRALO - educational training/ICANN collab
> NARALO  $                                       18 000,00 0 1 Global
> indegenous persons mentorship prog for ICANN 60 & 61
> Other allocations  $                                    251 000,00     Unlisted
> allocation & project description
> ICANN academy  $                                       86 000,00 0 0 Academy
> Chairing skills prog & media support
> RySC  $                                       95 000,00 0 0 Increase of
> leadership program slots & document development support
> ISOC Ecuador  $                                                      -   1
> 0 Not supported by NCSG or any ICANN community
> Public and media support  $                                       70
> 000,00 0 1 Allows participation by all SO-AC communities, ICANN
> communications Team will manage development of all community outreach
> content,
> CROP  $                                                      -   0 1 The
> CROP Program has been removed and the activity has been moved to the Policy
> Development Support budget as part of the core activities to be coordinated
> by that staff in collaboration with the GSE team.
> Total 2018 ICANN annual budget allocations  $
> 716 800,00 13 23
> Note 1:  that unlisted allocations mean that projects have been approved
> but there is either no funds or liaison with ICANN staff, regional teams or
> communication teams is needed to access these funds as allocations in the
> form of provisions made available within ICANN org. Not sure why ICANN
> academy would fall within additional budget requests, unless internal staff
> are permitted to make such requests. Any funds that were available in 2017
> but were not accessed are worth trying to retrieve, it is probable that
> they can still be accessed,
> Note 2:  CROP funds were moved to the policy development core budget but
> the respective budget has not increased but was decreased by $6 million.
>
> I have also viewed the operational plan in terms of significant budgetary
> changes and below were the findings:
>
> MAJOR BUDGET CHANGES FOR 2019 FY
> Strategic objectives Changes in portfolio spending and allocations
> Evolve and further globalize ICANN: STRAT OBJ 1 - significant increased
> spending 0f $12,5 million SIGNIFICANT BUDGET INCREASES - spending
> increase Vs YA, mainly driven by $6.7 million net increase on "Bringing
> ICANN to the world & proactive engagement of stakeholders goal"
> - $5,9 million increase on Ëngaging stakeholders regionally
> - $1.5 miiion increase on "Meeting services"
> SIGNIFICANT BUDGET DECREASES- $3.4 million net decrease Vs YA mainly
> affected by spending reduction on "Regionalisation and globalisation of
> ICANN functions goal:
> - complete removal of the GSE team coordination & admin budget -$ 1.2
> million
> - $1.9 million reduction on "Language services"
> Support a healthy, stable and resilient unique identifier ecosystem: STRAT
> OBJ 2 - decreased spending of $8.8 million SIGNIFICANT BUDGET DECREASES-
> spending decrease Vs YA mainly affected by $7.1 million spending reduction
> on "Support the evolution of domain name marketplace to be robust, stable
> and trusted goal":
> - $1.4 million budget reduction on "Universal Acceptance"
> - $4.2 million budget reduction on "New gTLD Program"
> Another significant budget reduction of $2 million on the "Fostering a
> secure, stable, and resilient identifier ecosystem" affected by reduced
> spending of $2.4 million on "Product Management"
> NOTABLE BUDGET INCREASES - $900K spending increase Vs YA on "Proactively
> plan for changes in the use of unique identifiers and develop technology
> roadmaps to help guide ICANN activities"
> - Identifier evolution expenses experienced a $1.4 million fund injection
> Under the "Support the evolution of domain name marketplace to be robust,
> stable and trusted goal" $700k was allocated to IDN
>
>
> Now, as the finance committee, we would like to learn about what members
> want so that we can champion their interest and provide direction when
> working with ICANN Finance staff, thanks.
>
>
> On Mon, Feb 26, 2018 at 1:22 PM, Kris Seeburn <seeburn.k at gmail.com> wrote:
>
>> All this is for the good but one should look further than set rules. Has
>> anyone looked at the model ICANN i still working how the resources are
>> allocated and why? Sorry i also have the background of chairing and looking
>> at finance strategies and also Board audit committees. Have we looked up on
>> Risks and have we looked up on projects that works and bring the necessary
>> to ICANN.
>>
>> Replenishment is not the only thing ICANN should be looking at but long
>> term strategy and existence. The models are changing be it financial and
>> the internet. So we should be looking at all these in a very strategic way.
>> One is re-evaluate and look at the ICANN strategy and projects and then you
>> start looking at SO/AC and houses/constituencies. Project based budgets,
>> and win/gain strategies.
>>
>> Its not only about money some projects may not bring the money but surely
>> goes as an outreach.So we need to think clear.
>>
>> On Feb 26, 2018, at 13:39, Thato Mfikwe <thatomfikwe at gmail.com> wrote:
>>
>> Dear all,
>>
>>
>> The ICANN’s Finance Team is organising a webinar to look into
>> replenishment of  ICANN Reserve Fund and would like to invite you to attend
>> a webinar.
>>
>> The webinar will cover the following:
>>
>>    - Replenishment Strategy for the ICANN Reserve Fund
>>    - Questions
>>
>> Below are the details for the webinar and please also see the
>> announcement on ICANN.org <http://icann.org/> at the following link:
>> https://www.icann.org/news/announcement-2018-02-23-en
>>
>>
>>
>> If you are unable to participate in this session, it be recorded and
>> posted to the community wiki for future viewing and additional questions.
>>
>>
>> Looking forward to your participation.
>>   Webinar Details and How to Attend
>>
>> Date: 1 March 2018
>>
>> Time 17:00 UTC
>>
>> To participate please access the Remote Participation:
>>
>> https://participate.icann.org/planning
>>
>>
>> *Brief background on Reserve Funds*:
>>
>> When initially established, the ICANN Reserve Fund is targeted to cover
>> 12 month of ICANN operational expenses due to ICANN's risk profile,
>> unexpected expenses and changing environmental factors of a particular FY.
>> The Reserve fund is governed by ICANN's Investment Policy
>> <https://www.icann.org/resources/pages/investment-policy-2017-09-18-en>
>> and normally used to address expenses relating to possible and potential
>> consequential events:
>>
>> - Replenishing operating expenses due to unbudgeted events, payment of
>> liabilities and maintenance/replacement of assets
>>
>> - Downsizing or restructuring of ICANN's operations
>>
>> - Mitigation of security and stability threats and attacks
>>
>> - Unplanned legal costs, unforeseen external events and operations after
>> disaster
>>
>> - New and major programs resulting from a new strategic plan
>>
>>
>> To learn more about the Reserve Fund, please click here
>> <https://www.icann.org/public-comments/reserve-fund-2017-10-12-en>
>> ,looking forward to your participation, thanks.
>>
>>
>> Thato Mfikwe - NCSG Finance Committee
>> _______________________________________________
>> Ncuc-discuss mailing list
>> Ncuc-discuss at lists.ncuc.org
>> https://lists.ncuc.org/cgi-bin/mailman/listinfo/ncuc-discuss
>>
>>
>>
>>
>>
>>
>> Kris Seeburn
>> seeburn.k at gmail.com
>>
>>    - www.linkedin.com/in/kseeburn/
>>    "Life is a Beach, it all depends at how you look at it"
>>
>>
>> <KeepItOn_Social_animated.gif>
>>
>>
>
>
>
>
>
> Kris Seeburn
> seeburn.k at gmail.com
>
>    - www.linkedin.com/in/kseeburn/
>    "Life is a Beach, it all depends at how you look at it"
>
>
>
>
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> Ncuc-discuss at lists.ncuc.org
> https://lists.ncuc.org/cgi-bin/mailman/listinfo/ncuc-discuss
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