[nc-budget] AGENDA FOR TODAY'S BUDGET COMMITTEE TELECONFERENCE
Please accept my apologies for not getting this agenda out sooner. The holidays have put me a bit behind on several things and there are no new items for today's meeting: our two agenda items have both been before us for several months and are actually carryovers from our December 19th meeting: The treatment of payments from NC Constituencies (should they be credited to the oldest or the newest invoice?) and the 2002 DNSO budget. In addition, four routine invoices are attached for our approval. Rather than re-introduce new materials on these, I am re-sending the materials that were sent to you previously on both and attaching copies of the four invoices that were received in late December. 1. TREATMENT OF NC CONSTITUENCY PAYMENTS "First, attached you will find a current financial statement for the DNSO. Please note that it continues to use the previous practice of crediting DNSO Constituencies' payments to the newest --as opposed to the oldest-- debt to the DNSO. Although we have not addressed this issue one way or another, it seemed to me that for constituency, we should continue to view financial reports formatted in this manner until we decide whether payments should be credited to the oldest or the newest debt to the DNSO." 2. DNSO 2002 BUDGET " we need to complete work on the DNSO's 2002 budget. In this context, I attach a revised proposal for a 2002 DNSO budget that is based informal conversations with Committee members. Among many others, two factors need to be considered when we take this item up: 1) ICANN management has advised us that they believe that it is prudent and necessary for the DNSO to plan on always having a minimum cash reserve in its accounts of $30,000. Moreover in part because of concerns over their own possible liability for DNSO financial obligations, ICANN management has advised us that if the DNSO accounts were planned to go below $30,000 or actually did go below $30,000, then ICANN management would exercise its option to terminate its administration of the funds for the DNSO. Under these circumstances, since our 2002 budget would normally be designed to be fully spent by year-end, if we do not add a $30,000 "permanent reserve" into our requirements for 2002, then we would probably fall below ICANN management's minimum cash reserve requirements sometime around August 2002. Based on ICANN management's notice to us, unless we add this "permanent reserve" to the 2002 DNSO budget, they apparently reserve the right to terminate their administrative relationship with us at any time without further notice. For this reason, my attached 2002 budget proposal now includes a new item of a $30,000 "permanent reserve"; and 2) The Names Council at its last meeting approved a resolution requesting that ICANN appropriate from its 2002-2003 funds $170,000 to cover the operating expenses of the DNSO for 2002. We have no reaction or response from ICANN management or the ICANN Board on this request, other than an acknowledgement of it. Consequently, I believe that we have no alternative other than to proceed on the assumption that Names Council's request is not agreed to and to develop a 2002 DNSO budget of our own. Obviously, if ICANN accepts the Names Council's request, we will have to alter our course at that time. I have asked Louis Touton to be available to answer any questions on ICANN management's notice to us on the need for a $30,000 permanent reserve and, to the extent that he can, comment on the status of ICANN management and Board review of the Names Council request for a $170,000 ICANN appropriation to the DNSO during their 2002-2003 budget year. PROPOSED DNSO 2002 BUDGET (1 January 2002 -- 31 December 2002) ======================================================================= Current funds $144K Rough Commitments Against Current Funds Through EOY 2001 AFNIC '00 $59K AFNIC '01 $40K Other $ 4K TOTAL $103K Projected surplus of Funds at Year-End 2001 $41K ======================================================================= PROJECTED DNSO EXPENSES IN 2002: MINIMUM Secretariat (including AFNIC) $70K Connectivity $10 K Telephone $15K Secretariat Travel $15K Misc $30K Permanent Reserve $30K TOTAL $170K LESS 2001 CARRYOVER -$41K ADDITIONAL FUNDS NEEDED $129K PER CONSTITUENCY (7) $18.4K POTENTIAL ADDED EXPENSES Partial Staff Support $50K ($7.2K/Constituency) Web casting $50K Translation Services $50K Full Staff Support $120K ($17.1K/Constituency) ============================================================================ ============================ 3. NEW INVOICES see attached Roger Cochetti Chair Names Council Budget Committee Y2001.Dec.AFNIC-to-ICANN-invoice.doc Y2001.Dec.GLEN-to-ICANN-invoice.doc Y2001.Dec.GLEN-to-ICANN-TC-invoice.doc Y2001.Dec.GLEN-to-ICANN-TR-invoice.doc |