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

["Erica Roberts" <erica.roberts@bigpond.com>]

Thanks Roger,
As I understand it, under this proposal, any authorisation to spend funds
will require a vote of either the budget comm or the NC.  This  imposes a
significant administrative burden on the NC for day to day financial
management which to my mind is inappropriate. It seems to me that it may be
more appropriate for the NC to delegate to the Budget Committe
*responsibility for the development of an annual income and expenditure
(cash flow) plan
* authority to expend funds as allocated in the budget; and
* responsibility for providing  monthly reports to the NC detailing actual
expenditure against projected expenditure - and highlighting any significant
variation between actual and projected expenditure.

This approach would allow the NC to monitor and supervise day to day
financial management by the Budget Committee, while, at the same time,
relieving each member of the NC of the need to be involved in day to day
decision making. Of course, in order for this to work, it is critical that
an income and expenditure plan be developed detailing each month's projected
cash flow.
Since such a plan is a critical tool of financial management which weill
involve some develoopment time and effort,  I would be happy to support your
motion pending the development of  financial management tools which will
enable to the NC more effectively delegate responsibility for day to day
financial management.

erica

----- Original Message -----
From: "Cochetti, Roger" <RCochetti@verisign.com>
To: "'Nilda Vany Martinez Grajales'" <vany@sdnp.org.pa>; "Cochetti, Roger"
<RCochetti@verisign.com>
Cc: <nc-budget@dnso.org>
Sent: Friday, April 20, 2001 9:35 PM
Subject: RE: [nc-budget] NEXT STEPS IN THE ADMINISTRATION OF DNSO VOLUNTAR Y
FUND


> 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