RE: [nc-budget] REPORT OF BUDGET COMMITTEE TO THE NAMES COUNCIL

["Gomes, Chuck" <cgomes@verisign.com>]

Roger,

I note that you did not mention the current funds in the account that
are not yet obligated, the funds that are going to be used to cover the
ICANN required reserve.

Chuck

> -----Original Message-----
> From: Cochetti, Roger [mailto:RCochetti@verisign.com]
> Sent: Monday, January 14, 2002 2:06 PM
> To: council@dnso.org
> Cc: 'DNSO Secretariat'; nc-budget@dnso.org
> Subject: [nc-budget] REPORT OF BUDGET COMMITTEE TO THE NAMES COUNCIL
> 
> 
> 
> 
> The Names Council Budget Committee met during December and January to
> address several questions, including invoices that had been 
> received from
> Glen de St Gery and AFNIC; the structure of a contract between ICANN
> (serving as an agent for the DNSO) and  Glen de St Gery; the 
> structure of a
> contract between ICANN (again, serving as an agent for the 
> DNSO) and AFNIC;
> intellectual property issues associated with the final 
> payment to AFNIC for
> services that AFNIC provided to the DNSO during 2000; 
> procedures governing
> the allocation of DNSO Constituency dues payments; the 
> partial refund to a
> person acting as an agent of the DNSO Registrar Constituency 
> of payments
> mistakenly made by ICANN-accredited registrars to ICANN (once 
> again, ICANN
> was acting as an agent for the DNSO); and a proposed DNSO 
> budget for 2002.
> 
> Two of these are action items for the Names Council.
> 
> 1.  Partial Refund of Payments Made by Certain Registrars to 
> ICANN (which
> was serving as an agent for the DNSO)
> 
> ICANN management's accounting report to the Names Council 
> Budget Committee
> shows that as of 17 Decembre, the Registrar Constituency had 
> made payments
> of $28,107.14 toward  their 2001 dues, compared with an assessment of
> $15,371.00.  On 24 October 2001, Bryan Evans, identifying 
> himself as a agent
> of the Registrar Constituency, advised the Budget Committee that the
> $28,107.14 payment reflected a mistaken overpayment by these paying
> registrars and that the paying registrars and the DNSO Registrar
> Constituency would like the Council to refund $12,736.14 to 
> Bryan Evans,
> acting as an agent for the Registrar Constituency.  B. Evans and other
> Registrar Constituency representatives indicate that the 
> $28,107.14 includes
> payments from individual registrars intended to go to the 
> DNSO Registrar
> Constituency itself along, with the $15,371.00 in Registrar 
> Constituency
> dues payments to the DNSO.
> 
> The reported overpayment and request for a partial refund 
> payment to an
> individual acting as an agent for the Constituency raise quite a few
> questions including any potential liability that the 
> Committee, the Council
> or ICANN itself might have for the payment of funds to an 
> individual that it
> received from registrars presumably for the DNSO.  The 
> Committee examined
> the issue carefully and concluded that the representations of 
> unintentional
> overpayment made by the Registrar Constituency on behalf of individual
> registrars were accurate and that a payment of $12,736.14 
> should be made to
> the following person who acts as an agent of the Registrar 
> Constituency:
> Bryan Evans; Director of Technology; Allegiance Telecom;
> Bryan.Evans@algx.com; 312-496-4295.
> 
> Since this amount exceeds the authority of the Budget 
> Committee to authorize
> expenditures, the Committee asks the Council to authorize a payment of
> $12,736.14 to Mr. Bryan Evans, an agent of the DNSO Registrar 
> Constituency.
> 
> 
> 
> 
> 2. Proposed 2002 DNSO Budget
> 
> The DNSO budget year begins on January 1st and ends on 
> December 31st (unlike
> ICANN's, which begins on July 1st and ends on June 30th) and 
> among the most
> important administrative matters the Council addresses each year is to
> establish a DNSO budget, which results in Constituency dues 
> assessments and
> payments.
> 
> The Budget Committee met several times to consider a 2002 
> budget for the
> DNSO and relied heavily on Glen de Saint Gery, our 
> Secretariat for practical
> estimates of our administrative/financial needs for 2002.  The Budget
> Committee proposes a 2002 DNSO expense budget of U.S. 
> $97,961, broken down
> as follows:
> 
> Secretariat-Related:			$65,000 (1)
> 
> Internet-Access Services		$ 1,400
> 
> Travel					$ 8,500 (2)
> 
> Telephone					$14,160 (3)
> 
> Contingency Funds				$ 8,901 (4)
> 
> TOTAL						$97,961
> 
> -------
> 
> Notes To Expense Budget
> 
> (1) 	AFNIC Contract @ $21,600
> 	St. Gery Contract @ $38,400 
> 	St. Gery Overtime @ $5,000
> 
> (2) 	St. Gery Travel @ $8,500
> 
> (3)	13 DNSO Teleconferences @ $820 each = $10,660
> 	Telephone Hook Ups for 3 Physical NC Meetings @ $1,500
> 	St. Gery Telephone Services @ $ 2,000
> 
> (4)	Contingency Funds at 10% of Total of $89,060 = $8,901
> 
> ------------------
> 
> Based on this expense level, DNSO Constituency dues for 2002 would be
> $13,994 assuming seven paying DNSO Constituencies; or $16,327 
> assuming six
> paying DNSO Constituencies; or $19,592 assuming five paying DNSO
> Constituencies.
> 
> 
> 
> Roger Cochetti
> Chair
> Budget Committee
> Names Council
> 
> --------------------------------------------------------------
> --------------
> --------------------------------------------
> 	
> 
> 
> Roger J. Cochetti
> Senior Vice President & Chief Policy Officer
> VeriSign
> rcochetti@verisign.com
> 202-973-6600
> 
> 
>   
>  
>

smime.p7s