RE: [nc-budget] NEXT STEPS IN THE ADMINISTRATION OF DNSO VOLUNTARY FUND

["Cochetti, Roger" <RCochetti@verisign.com>]

Thanks Vany.  I've put my comments on your comments IN CAPS TO MAKE IT
EASIER TO READ.

-----Original Message-----
From: Nilda Vany Martinez Grajales [mailto:vany@sdnp.org.pa]
Sent: Monday, April 16, 2001 7:40 PM
To: nc-budget@dnso.org
Subject: RE: [nc-budget] NEXT STEPS IN THE ADMINISTRATION OF DNSO
VOLUNTARY FUND


Hi Roger, Peter and all:

Sometimes there are organizations and/or individuals that maybe wants to do
small contributions to the DNSO, however, the costs of the wire transfer are
excesively high for such little ammounts.

I found the following website that maybe will help for those that make
little
contributions to also send them

http://www.paypal.com

I think this system is an alternative.  Visit it and let me know what do you
think, please.

Now, about Roger message...

El lun, 16 abr 2001, Peter de Blanc escribió:

> I believe that we now have an agreement in principal with ICANN management
> over the administration of the funds that will be voluntarily collected,
> which should now pave the way for our actual solicitation of donations.
> 
> I will ask ICANN management to draft an MOU that describes in greater
detail
> how the funds will be administered for us by them, addressing
specifically:

> *to whom checks should be made payable


I suggest that ICANN opens two bank accounts:
1.  For savings:  Because this ones earns interests.  But we have to take
care
that we have to keep in such account always the minimum deposit to not be
charged with monthly fees.

2.  Checking account:  also always to keep the minimum to not be charged
with
fees.   Everytime an expense is made, then make a transferece from the
savings
account to the checking account (this is easy to do even by phone).  Of
course,
if such transactions doesn't have a fee to pay.

Both accounts should be at the name of ICANN-DNSO, to easy identify such
account.  So for deposits and/or payments done to DNSO, then checks has to
be
in the name of ICANN-DNSO.    For payments to third parties checks or wire
transfers has to be made in the name of such third party.

ACTUALLY I DO NOT EXPECT THAT ICANN MANAGEMENT WILL OPEN A SEPARATE BANK
ACCOUNT FOR THESE FUNDS, BUT RATHER KEEP THEM CO-MINGLED WITH THERE GENERAL
CASH ACCOUNTS, BUT REPORT TO US SEPARATELY ON THE AMOUNTS....I DOUBT IT
MAKES MUCH DIFFERENCE TO US WHETHER THERE IS A BANK ACCOUNT WITH THE NAME
"DNSO VOLUNTARY FUND" ON IT, BUT THE ADMINISTRATIVE/TAX ASPECTS OF OPENING
UP AND MARINATING SEPARATE BANK ACCOUNTS CAN BE SUBSTANTIAL

WE PROPOSED AT AN EARLIER STAGE THAT WE SHOULD RECEIVE INTEREST ON ANY FUNDS
THAT ICANN MANAGEMENT ADMINISTERS FOR US AND THEY WERE NOT WILLING TO AGREE
TO THIS 

   

> *what reports we will receive on the condition of the funds
Banks always sends account statements, so if they send us a copy of such
monthly account statements...it would be fine.   At the end of the fiscal
year,
it would be nice to have a total report, of course.

> *to whom we should address instructions on disbursements
Designated by ICANN

> *how long we should expect it to take for such instructions to be executed
> *how ICANN management will advise us if they conclude that they cannot
> comply with a disbursement instruction


Which reasons? Not enough funds?  A unilateral decision of the ICANN
management?
Does the NC wants that ICANN management have the power to prevent funds
disbursement?  If yes, which reasons would be valid for such unilateral
denial
of funds?

I THINK MY EXCHANGE OF NOTES WITH STUART LYNN ALREADY ADDRESSES
THIS....THERE ARE TWO GENERAL CIRCUMSTANCES UNDER WHICH WE HAVE AGREED ICANN
MANAGEMENT MAY REFUSE TO MAKE A DISBURSEMENT AS DIRECTED:  IF ICANN
MANAGEMENT FEELS THAT THE DISBURSEMENT WOULD:  (1) BE ILLEGAL; OR (2)
JEOPARDIZE THEIR TAX STATUS.  THERE ARE NO OTHER CATEGORIES PERMITTED.
HOWEVER WE MUST NOW DEFINE A LITTLE BIT MORE WHAT EACH CATEGORY MEANS AND
CLARIFY EXACTLY HOW WE WILL BE NOTIFIED BY ICANN MANAGEMENT THAT THEY ARE
EXERCISING THEIR RIGHT TO REFUSE TO MAKE A DISBURSEMENT 



> If you have any thought son any additional areas in which we need
> clarification from ICANN management, please let me know asap.

Covering of fees for wire  transfers, banking transfers, etc:  who wil cover
these fees, the payer or the payee?

IN MY EXPERIENCE, THE FEES FOR A WIRE TRANSFER ARE COVERED BY THE SENDER, SO
IN THIS CASE IF WE DIRECTED ICANN MANAGEMENT TO MAKE A DISBURSEMENT BY WIRE
TRANSFER, I ASSUME THAT THEY WOULD DO SO AND CHARGE OUR ACCOUNT FOR THE
BANK'S FEES ASSOCIATED WITH THE WIRE TRANSFER....IT WOULD BE AWKWARD TO
REQUIRE THE PAYEE (E.G. A CONSULTANT TO US) TO COVER THESE COSTS  

  

Confirmation of authorization of disbursement using digital signature and/or
digital certicate.

GOOD IDEA...ICANN SHOULD USE THESE MORE WIDELY ANYWAY


> In addition, I believe that we now need a Names Council
>Resolution that sets  forth the procedures for authorizing disbursements of
>these funds (i.e. who > has the authority to instruct ICANN management to
make
a disbursement).  
> My suggestion is that the Names Council delegate to the Budget Committee
the
> authority to authorize expenditures from (by majority vote of the full
> membership of the Committee) 


I think we should add one more vote that would be a person not belong to the
committee but a member of the Names Council.  Maybe the NC Chair?
So the total of votants would be: The NC-Budget Commitee plus the NC Chair.
However, to make a votation for authorize payment, it is needed a minimum
quorum.  Whatever be the minimum quorum always the NC Chair should be
present.

THE NC CHAIR IS AN EX-OFFICIO MEMBER OF THE BUDGET COMMITTEE, SO HE/SHE MAY
PARTICIPATE IN BC MEETINGS AT WILL...I WOULD NOT GO ANY FURTHER THAN THAT



> the voluntary funds of up to $10,000 and that
> expenditures of greater than $10,000 be approved by the full Names
Council.
> Separately, I believe that the Names Council should delegate the same
> limited spending authority to the Budget Committee for funds in the
assessed
> dues from the DNSO Constituencies.

1.  I think that $10000.00 is too much.  I think that up to $5000.00 in
expenditures is ok for no need authorization of the full NC, if it is in the
aprooved budget.


I WON'T ARGUE THE POINT, BUT I THINK $5K IS TOO LOW



2.  If it the expenditure wasn't in the budget, then need authorization of
the
full NC if it is more than $2500.00

WE HAVE A SUBSTANTIAL "MISCELLANEOUS" CATEGORY IN THE BUDGET SO THAT SHOULD
COVER "UNBUDGETED" ITEMS...IF IT DOES NOT, THEN I THINK WE SHOULD GO BACK TO
THE COUNCIL WITH A REVISED BUDGET



The Expenditure is defined as the service or good adquired by its total
amount
regardless if it is disbursed in a one time payment or divided in several
payments in one fiscal year.

> Without these delegations of authority, it could appear that every single
> expenditure of both voluntary and assessed funds would require the
approval
> of the entire Council, which seems a great waste of their time,
particularly
> since the Council already approved a budget.
Agree

What do you think about all these suggestions?

MY COMMENTS ARE IN CAPS

> Rather than call another meeting of the Budget Committee to discuss these
> two proposals (two delegations of authority from the Council to the
> Committee) I thought I'd circulate them and ask for your comment.
> 
> Thanks
Thanks to you.

Cheers
Vany



-- 
Nilda Vany Martinez Grajales
IT Specialist
Sustainable Development Networking Programme/Panama
Tel: (507) 230-4011 exrt 213
Fax: (507) 230-3455
e-mail:  vany@sdnp.org.pa
http://www.sdnp.org.pa