<html><body><span style="font-family:Verdana; color:#000000; font-size:10pt;"><div>Before getting legal teams involved for a review of AOC clauses, I would suggest we defer to the NTIA as to the intent when the AOC was drafted and agreed upon with ICANN.<BR></div>
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<div>Warren<BR><BR>Warren Adelman<BR>President & COO<BR><a href="http://GoDaddy.com">GoDaddy.com</a><BR><a href="mailto://warren@godaddy.com">warren@godaddy.com</a><BR>tel. (480)505-8835<BR>fax. (480)275-3990<BR>mobile.(480)882-8876</div>
<div>twitter: <a href="http://twitter.com/asocialcontract">http://twitter.com/asocialcontract</a><BR><a href="http://www.godaddy.com">http://www.godaddy.com</a></div>
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<DIV id=wmQuoteWrapper>-------- Original Message --------<BR>Subject: [AT-Review] ATRT budget<BR>From: "Brian Cute" <<a href="mailto://briancute@afilias.info">briancute@afilias.info</a>><BR>Date: Thu, July 15, 2010 7:12 pm<BR>To: <<a href="mailto://at-review@icann.org">at-review@icann.org</a>><BR><BR>
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<div class=MsoNormal style="font-size:12pt;">RT,<o:p></o:p></div>
<div class=MsoNormal style="font-size:12pt;"><o:p> </o:p></div>
<div class=MsoNormal style="font-size:12pt;">I had a call with the Board committee that is reviewing the ATRT proposed budget. Rita Rodin, Dennis Jennings, Katim Touray and Vanda Scarezini attended from the Board. Peter was also on the call.<o:p></o:p></div>
<div class=MsoNormal style="font-size:12pt;"><o:p> </o:p></div>
<div class=MsoNormal style="font-size:12pt;">The tone was constructive and the Board members noted their support for the ATRT’s work and their desire to have recommendations from the review team process that satisfy the requirements of the Affirmation of Commitments. They also noted their respect for the independence of the ATRT and their fiduciary obligation to the Community to ensure, from a budgetary perspective, that appropriate and justifiable resources are brought to bear. <o:p></o:p></div>
<div class=MsoNormal style="font-size:12pt;"><o:p> </o:p></div>
<div class=MsoNormal style="font-size:12pt;">I explained the ATRT budget decision making process as it pertains to the scope of work under paragraph 9.1 of the AoC and the decisions to have face-to-face meetings as well as the RFP process to retain an Independent Expert.<o:p></o:p></div>
<div class=MsoNormal style="font-size:12pt;"><o:p> </o:p></div>
<div class=MsoNormal style="font-size:12pt;">The Board members were concerned about the ATRT budget as well as the total cost of other reviews (given the size of the ATRT budget) that are required under the AoC. The Board members asked if cost reductions were possible particularly with regard to the Independent Expert. The Board members posed the following questions:<o:p></o:p></div>
<div class=MsoNormal style="font-size:12pt;"><o:p> </o:p></div>
<div style="TEXT-INDENT: -0.25in; mso-list: l2 level1 lfo1" class=MsoListParagraph><SPAN style="mso-list: Ignore">-<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>Is a team of 9 members from the Independent Expert candidate necessary? Could the number be reduced along with the proposed cost of the Independent Expert’s work. Perhaps in half?<o:p></o:p></div>
<div style="TEXT-INDENT: -0.25in; mso-list: l2 level1 lfo1" class=MsoListParagraph><SPAN style="mso-list: Ignore">-<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>It was observed that the unique, individualized expertise of Independent Expert team members was not clear and that they may be redundancies.<o:p></o:p></div>
<div style="TEXT-INDENT: -0.25in; mso-list: l2 level1 lfo1" class=MsoListParagraph><SPAN style="mso-list: Ignore">-<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>It appeared from the ATRT’s early work that it intended to have a “management review” or audit performed by the Independent Expert. Case studies were added to the scope of the Independent Expert. Why was that done? [I provided answers to this question and noted that the case studies recommended came from the ATRT’s interaction with the Community.]<o:p></o:p></div>
<div style="TEXT-INDENT: -0.25in; mso-list: l2 level1 lfo1" class=MsoListParagraph><SPAN style="mso-list: Ignore">-<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>An interpretation question was asked concerning the scope of paragraph 9.1. One interpretation is that paragraph 9.1 calls for a review of the “execution of tasks” by ICANN. The ATRT was asked if the scope of its work for the Independent Expert was consistent with the execution of tasks or if it go beyond that scope – see the “assessing and improving” and “assessing” iterations of paragraph 9.1 (a)-(e). <o:p></o:p></div>
<div style="TEXT-INDENT: -0.25in; mso-list: l2 level1 lfo1" class=MsoListParagraph><SPAN style="mso-list: Ignore">-<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>A question was raised with regard to a quote from the ATRT’s Independent Expert RFP: “the ATRT is not seeking an audit of whether processes and procedures are in place (i.e., a Sarbanes-Oxley audit), but rather a focus on reviewing and assessing the quality of the decision-making as a result of the processes and procedures.” The Board members asked whether “assessing the quality of decision-making” took the scope of work beyond paragraph 9.1 – if a review of the execution of tasks is the proper orientation of the review.<o:p></o:p></div>
<div style="TEXT-INDENT: -0.25in; mso-list: l2 level1 lfo1" class=MsoListParagraph><SPAN style="mso-list: Ignore">-<SPAN style="FONT: 7pt 'Times New Roman'"> </SPAN></SPAN>Given the limited time frame for the review, the intended scoped and depth of review may prove unwieldy for the ATRT and its resources. Should the ATRT consider an iterative approach to the review? Making recommendations about areas that should be subject to further review, analysis and action, if necessary.<o:p></o:p></div>
<div class=MsoListParagraph><o:p> </o:p></div>
<div class=MsoNormal style="font-size:12pt;">I noted that while resources and costs of the Independent Expert could possibly be reduced, that reducing the scope of work would be problematic – given the requirements of paragraph 9.1. Nevertheless, please comment on the question of interpretation of paragraph 9.1 and provide feedback to the remaining questions, noting if you see areas where projected costs could be reduced.<o:p></o:p></div>
<div class=MsoNormal style="font-size:12pt;"><o:p> </o:p></div>
<div class=MsoNormal style="font-size:12pt;">Regards,<o:p></o:p></div>
<div class=MsoNormal style="font-size:12pt;">Brian<o:p></o:p></div>
<div class=MsoNormal style="font-size:12pt;"><o:p> </o:p></div></DIV>
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