ICANN Resolutions » Transfer to Reserve Fund and Creation of Supplemental Fund for Implementation of Community Recommendations (SFICR)
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's day-to-day operations and must contain enough funds to cover at a minimum ICANN's expected expenditures for three months.
Whereas, periodically, any funds in the Operating Fund considered to be in excess of its normal level may be transferred to the Reserve Fund to maintain a minimum target level, as determined and approved by the Board.
Whereas, a Supplemental Fund for Implementation of Community Recommendations (SFICR) will allow ICANN to segregate resources in support of increasing the capacity of the organization to address activities and projects not currently included in the organization's historical expenses or current budget.
Whereas, the ICANN Investment Policy has been revised to reflect the governance of the SFICR.
Whereas, periodically, if excess funds exist in the Operating Fund after an allocation to the Reserve Fund has been considered or decided, an allocation to the SFICR will be considered during the annual planning process based on the project needs identified.
Whereas, ICANN organization has determined that the balance of the Operating Fund as of 30 June 2020, based on the audited Financial Statements, contained excess funds.
Resolved (2021.05.12.13), the Board approves the transfer of US$10,000,000 from the Operating Fund to the Reserve Fund.
Resolved (2021.05.12.14), the Board authorizes the creation of the SFICR.
Resolved (2021.05.12.15), the Board approves the revised ICANN Investment Policy that, as revised, establishes the governance of the SFICR and provides clarity on a few other provisions.
As part of ICANN's Investment Policy, the Operating Fund should be at 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 may be transferred to the Reserve Fund to ensure its balance is at or above the minimum target level, as determined and approved by the Board.
A Supplemental Fund for Implementation of Community Recommendations (SFICR) would establish segregated resources in support of increasing the capacity of the organization to address activities and projects not currently included in the organization's historical expenses or current budget. If the Operating Fund contains net excess after an allocation to the Reserve Fund has been made, an allocation to the SFICR will be determined based on the project needs identified.
ICANN organization has evaluated the Operating Fund at the end of FY20 on the basis of its audited Financial Statements, and has determined that excess funds of US$10,000,000 should be transferred to the Reserve Fund and an SFICR should be created. The governance of the SCFIR is set forth in the ICANN Investment Policy.
This action is consistent with ICANN's mission and is in the public interest 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. Furthermore, this action is consistent with ICANN's mission and is in the public interest as the SFICR will fund projects, as approved by the Board, when the size, complexity, and length of the projects create a challenge to be solely funded by recurring funding. The SFICR will fund projects based on the public interest of the community that would otherwise go unbudgeted.
This action will not have a negative financial impact on ICANN, and will not have any negative impact on the security, stability or resiliency of the domain name system.
This is an Organizational Administrative function that does not require public comment.