ICANN Resolutions » Net Asset Excess Transfer Approval
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 Operating Fund includes the funds used for ICANN organization's day-to-day operations and must contain enough funds to cover at a minimum ICANN organization's expected expenditures for three months.
Whereas, periodically, any funds considered to be in excess should be transferred to the Reserve Fund.
Whereas, ICANN organization has performed an analysis of the required levels of the Operating Fund and has determined that the balance of the Operating Fund as of 30 June 2017, based on the Audited Financial Statements, contained excess funds.
Resolved (2017.11.02.32), the Board authorizes the President and CEO, or his designee(s), to transfer US$5,000,000 from the Operating Fund to the Reserve Fund.
As part of ICANN organization's investment policy, the Operating Fund shall contain a level of funds to cover a minimum of three months of ICANN organization's operating expenses, and that any amount determined to be in excess can be transferred to the Reserve Fund.
The ICANN organization has evaluated the Operating Fund at the end of FY17 on the basis of its Audited Financial Statements, and has determined that excess funds of US$5,000,000 should be transferred to the Reserve Fund.
This action is in the public interest and consistent with ICANN's mission, as it is important to ensure stability of ICANN organization in the way of a robust Reserve Fund in case use of a Reserve Fund becomes necessary, which in turn would help ICANN fulfill its mission.
This action will not have a financial impact on ICANN, and will not have any impact on the security, stability or resiliency of the domain name system.
This decision is an Organizational Administrative function that does not require public comment.