ICANN Resolutions » Confirmation of Reserve Fund Target Level
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.
Whereas, the Board and ICANN organization posted for public comment an updated rationale and target level for the ICANN Reserve Fund.
Whereas, the Board Finance Committee (BFC) has reviewed the comments submitted through the public comment process, the responses provided by ICANN org, and the changes to the rationale for the Reserve Fund suggested as a result of public comments.
Whereas, certain comments received require further analysis to determine the extent by which they should lead to additional changes, including submitted comments relative to Public Technical Identifiers/IANA functions and comments relative to a separate policy for the Reserve Fund.
Whereas, further work has been planned to develop governance provisions for the Reserve Fund and actions to replenish the Reserve Fund to the target level.
Resolved (2018.02.04.09), the Board adopts the recommended changes to the ICANN Investment Policy that include an updated rationale for the Reserve Fund and confirms the target level of the Reserve Fund at a minimum of 12 months of operating expenses.
Resolved (2018.02.04.10), the Board instructs the President and CEO, or his designee(s), to further analyze certain comments received and determine the extent by which additional changes to the Investment Policy should be considered.
Based on its fiduciary duties, and considering the significant evolution that ICANN has seen since the creation of its Reserve Fund, the Board determined that the Reserve Fund required to be reviewed. It therefore created a working group, supported by ICANN organization, that evaluated the Reserve Fund. This evaluation led to define an updated rationale and target level for the Reserve Fund. Considering the importance of the Reserve Fund to ICANN's financial stability and sustainability, the Board determined that public input was necessary and requested ICANN Org to post the analysis performed on the rationale and target level for public comment.
The Board also determined that, once the rationale and target level have been updated, after taking into account public comments, further work would be required to define governance mechanisms for the Reserve Fund, and to define a strategy to replenish the Reserve Fund from its current level to the target level.
This decision is in the public interest and within ICANN's mission, as it substantiates a fundamental mechanism supporting ICANN's financial stability and sustainability. Maintaining an appropriate reserve fund contributes to ICANN's to continue carrying out its mission in the public interest.
The update of the rationale and target level for the Reserve Fund, as reflected in the ICANN Investment Policy, will have a positive impact on ICANN in that it contributes to improving ICANN's financial stability and sustainability, and also provides the basis for the organization to be held accountable in a transparent manner. This will have a fiscal impact on ICANN and the Community as is intended. This should have a positive impact on the security, stability and resiliency of the domain name system (DNS) as ICANN's financial stability and sustainability contributes to ICANN's ability to help ensure to the security, stability and resiliency of the DNS.
This is an Organizational Administrative Function that has already been subject to public comment as noted above.