ICANN Resolutions » Reserve Fund Release - USG IANA Stewardship Transition Costs

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Reserve Fund Release - USG IANA Stewardship Transition Costs


Resolution of the ICANN Board
Topic: 
Reserve Fund Release - USG IANA Stewardship Transition Costs
Summary: 

Board Finance Committee has recommended that the Board authorize the release of funds from the Reserve Fund to cover the actual costs incurred in FY15 related to the USG IANA Stewardship Transition initiative

Category: 
Administration and Budget
Board
General
Meeting Date: 
Mon, 28 Sep 2015
Resolution Number: 
2015.09.28.11
Resolution Text: 

Whereas, on 26 April 2015, the Board authorized the withdrawal of funds from the Reserve Fund to cover costs incurred in FY15 related to the USG IANA Stewardship Transition initiative in an amount not to exceed US$7 million.

Whereas, ICANN has incurred actual costs during its FY15 of US$8.7 million, including unforeseen independent legal advice costs of approximately US$3.1 million.

Whereas, the Board reiterates its statement made on 25 June 2015 that the Board is "committed to supporting the community in obtaining the advice it needs in developing recommendations in support of the transition process, and also notes the importance of making sure that the funds entrusted to ICANN by the community are used in responsible and efficient ways. Assuring the continuation of cost-control measures over the future work of the independent counsel is encouraged." (See https://www.icann.org/resources/board-material/resolutions-2015-06-25-en...).

Whereas, the Board Finance Committee has recommended that the Board authorize the release of funds from the Reserve Fund to cover the actual costs incurred in FY15 related to the USG IANA Stewardship Transition initiative in an amount of US$8.7 million, and the Board agrees.

Resolved (2014.09.28.11), the Board authorizes the President and CEO, or his designee(s), to withdraw funds from the Reserve Fund to cover costs incurred in FY15 related to the USG IANA Stewardship Transition initiative in an amount of US$8.7 million.

Rationale for Resolution: 

The USG IANA Stewardship Transition initiative is a major initiative to which the ICANN Community as a whole is dedicating a significant amount of time and resources. ICANN's support for the Community in its work towards a successful completion of the project (including both the USG IANA Stewardship transition proposal development and accountability work) is critical for ICANN.

Considering its exceptional nature and the significant amount of costs anticipated to be incurred, the funding of this project could not be provided through the ICANN annual operating revenue. Accordingly, when the Board approved the FY15 Operating Plan and Budget, it included the anticipated funding of the project costs (US$7 million) through a corresponding withdrawal from the Reserve Fund.

As costs were incurred during FY15 for this project, the Board approved the withdrawal of funds from the Reserve Fund to cover the actual costs incurred in FY15 related to USG IANA Stewardship Transition initiative, up to the amount of US$7 million included in the Board approved FY15 Operating Plan and Budget.

As the total actual costs incurred during FY15 for this project totaled US$8.7 million thus exceeding the total amount of US$7 million of withdrawal from the Reserve Fund that the Board had authorized in its decision 2015.04.26.17, ICANN is proceeding with obtaining approval from the Board to withdraw funds from the Reserve Fund for the total amount of actual costs incurred of US$8.7 million. This action will not have a direct impact on the security, stability and resiliency of the domain name system.

This is an Organizational Administrative Function that does not require public comment.