ICANN Resolutions » Appointment of Independent Audit Firm for FY22
Important note: The Board Resolutions are as reported in the Board Meeting Transcripts, Minutes & Resolutions portion of ICANN's website. Only the words contained in the Resolutions themselves represent the official acts of the Board. The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.
Appointment of Independent Audit Firm for FY22
Whereas, Article 22, Section 22.2 of the ICANN Bylaws requires that at the end of the fiscal year, the books of ICANN must be audited by certified public accountants." Section 22.2 further states that the appointment of the fiscal auditors shall be the responsibility of the Board.
Whereas, ICANN organization has carried out a request for proposal for independent audit services, which has resulted in identifying [Redacted – Confidential Negotiation Information] as the most suitable for ICANN at this time.
Whereas, the Board Audit Committee has discussed the recommendation from ICANN org and has recommended that the Board authorize the President and CEO, or his designee(s), to take all steps necessary to engage [Redacted – Confidential Negotiation Information] to carry out the independent audit for the fiscal year ending 30 June 2022.
Resolved (2022.03.10.01), the Board authorizes the President and CEO, or his designee(s), to take all steps necessary to engage [Redacted – Confidential Negotiation Information] as the audit firm(s) for the financial statements for the fiscal year ending 30 June 2022.
Resolved (2022.03.10.02), specific items within this resolution shall remain confidential for negotiation purposes pursuant to Article 3, section 3.5(b) of the ICANN Bylaws until the President and CEO determines that the confidential information may be released.
ICANN has engaged the same independent audit firm since the audit of fiscal year 2014.
In 2021, the Board Audit Committee (BAC) recommended that ICANN organization perform a Request for Proposal (RFP) for the selection of the audit firm for FY22. ICANN org issued the direct RFP to numerous audit firms and received five expressions of interest. After evaluating a completed 75-part questionnaire received from each of the five firms, ICANN org invited all five firms to make an oral presentation.
ICANN org evaluated the interested firms on several attributes such as the overall capabilities of the firm, the professional team assigned, understanding the assignment, financial value/pricing, and proposed methodology/audit approach.
ICANN org evaluated [Redacted – Confidential Negotiation Information] as the most suitable for ICANN based on the firm's strong partner tenure, team experience in the Not-for-Profit and Technology sectors, and value for completing much of the transaction testing before the year-end audit begins. [Redacted – Confidential Negotiation Information]
Taking this decision is both consistent with ICANN's Mission and in the public interest as the engagement of an independent audit firm is in fulfillment of ICANN org's obligations to undertake an audit of ICANN org's financial statements and helps serve ICANN's stakeholders in a more accountable manner.
This decision will have a fiscal impact on ICANN, which is accounted for in the FY22 ICANN Operating Plan and Budget. This decision should not have any direct impact on the security, stability and resiliency of the domain name system.
This is an Organizational Administrative Function not requiring public comment.