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

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

Vany et al-

Somewhat to my own surprise, ICANN management is now comfortable with the
creation of two separate accounts for the DNSO voluntary funds:  one for
funds held in the short term and the other for funds  held in the long term
(As a separate matter, they will now do the same thing for the DNSO's
assessed dues funds.), but their accountants have great difficulty with the
use of a credit card, since their policy only permits disbursements from
accounts under their control by officers of ICANN.

Accordingly, here's my draft resolution for the next Names Council meeting.
Please give me any comments ASAP.

Roger

---------------------------------------------------

The Council authorizes the Budget Committee to

(1) conclude a Memorandum of Understanding with ICANN management on behalf
of the DNSO, under which ICANN management will serve as a custodian for the
funds raised by voluntary donations to the DNSO; In such a custodial role,
ICANN management will deposit and disburse funds as directed by the Council
or its Budget Committee, unless ICANN management reports to both that doing
so would in ICANN management's view either be illegal or jeopardize ICANN's
own tax status; and

(2) begin immediately an effort to raise and collect voluntary donations to
the DNSO, which donations will be administered through the above procedure;
and

(3) authorize and direct individual expenditures from the donated funds
described above, according to the terms of the 2001 DNSO budget approved by
the Names Council, for up to $5,000.00.  Any individual expenditure
exceeding $5,000.00 will require authorization from the Names Council; and

(4) authorize and direct individual expenditures from assessed dues
collected from DNSO Constituencies, according to the terms of the 2001 DNSO
budget approved by the Names Council, for up to $5,000.00.  Any individual
expenditure exceeding $5,000.00 will require authorization from the Names
Council.              

 -----Original Message-----
From: 	Nilda Vany Martinez Grajales [mailto:vany@sdnp.org.pa] 
Sent:	Thursday, April 19, 2001 1:47 PM
To:	Cochetti, Roger
Cc:	nc-budget@dnso.org
Subject:	RE: [nc-budget] NEXT STEPS IN THE ADMINISTRATION OF DNSO
VOLUNTAR Y FUND

Hi Roger:


On Wed, 18 Apr 2001, Cochetti, Roger wrote:

> Thanks Vany.  I've put my comments on your comments IN CAPS TO MAKE IT
> EASIER TO READ.
You are welcome :-)

> 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
I think it would be easier to have separate banking accounts because in this
way, it would be easier for ICANN and for us to have things in order and
organized, also, in this way, no one has to recalculate totals, things
are easier to identify, etc.
This is an account that will have a lot of activity, and I think that
having another bank account at the name of ICANN (but make clear in the MoU
the
acount number) would make things easier to manage funds for all.

About interests earning, I would like to know what reason they gave to
such funds doesn't earns interests: tax exemption status that doesn't
allows to any non-profit organization earn interests, or difficult in
calculating interests because the funds would be in the same account than
general account?


> 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
Excellent!


> > 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
In my experience, I realized that many organizations and even ICANN do the
following:  If the amount to pay is $1500.00, and the fee is $25.00 for a
wire transfer, then ICANN substracts $25.00 for pay the wire transfer, and
then the payee only receieves $1475.00.  This is an example, but this is
very common. That's why I ask what will be our policy in this.  And if,
for example, the DNSO has to pay $1500.00 and adding to it, it will pay
$25.00 to the bank without affecting the original total to transfer, then
it would be very nice.


> Confirmation of authorization of disbursement using digital signature
and/or
> digital certicate.
>
> GOOD IDEA...ICANN SHOULD USE THESE MORE WIDELY ANYWAY
Lets do it !!

> > 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
I think that should be mandatory that in any decision of budget NC-Chair
shoul participate.

> > 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
Then? which number do you like?   $6500.00?

> 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
Ok


And...what do you think about the proposal of Elizabet to also issue a
Credit Card?   It would simplify many payments to do.

Cheers
Vany


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