[bc-gnso] BC Initial Notes on Draft FY13 Budget

Thu May 3 16:54:54 UTC 2012

Dear BC members,

Here are my early bird notes on Draft FY13 Budget which was published on time 1 May 2012. 

The comment closes 25th May before reply round which closes on 15 June ahead of Board Finance Committee meeting and formal Board approval at Prague Meeting.  

 <http://www.icann.org/en/news/public-comment/op-budget-fy13-01may12-en.htm> http://www.icann.org/en/news/public-comment/op-budget-fy13-01may12-en.htm

Highlights

Level of is  the same as previous years.  Ie One level of breakdown followed by text with some numbers.  (Cross check this against original presentation in Cartagena with suggested a second level would be created this time).

General revenue up to 78m$ in FY13 from  70m$ in FY12 Budget and 71m$ in FY12 Forcast
Plus gTLD at 61m$    (part of 500 x 185k$ = 990m$)

Operating Expenses 18% up 74m$ in FY13  from  71m$ in FY12 Budget and 63m$ in FY12 Forcast

ie FY12 expenses are significant under budget

Personal costs 18% up to 30.9m$ in FY13
Staff levels up from 149 to 189
Professional sevvices up 39% to 20.6m$ 

SSR  - 14%   up to 9.3 m$ in FY13  from  8.7 m$ in FY12 Budget and 8.0 m$ in FY12 Forcast

Compliance  -   60%  up to 6.1 m$ in FY13  from  4.8  m$ in FY12 Budget and 3.8 m$ in FY12 Forcast

Ie FY12 expenses are significant under budget.

Contract Compliance up to 20  for FY13

“It is mainly driven by (i) a Compliance department headcount increase from an average of 9 FTE in FY12 to 15 FTE in FY13 for approximately $1.1 million, (ii) Compliance audit for $0.5 million, (iii) Legal allocated costs increase for $0.4 million, (iv) other overhead increases for $0.3 million.”
(cross check 9FTE which is not as previously reported in CR) 

Meeting team increased for 11FTE to 13 FTE.  Meeting sponsorship at 400k per meeting. Only 2 meeting in FY13

No fellowship budget identified

No communication dept budget identified

Large text on Global engagement  including: 

“Participate in events and provide presentations on ICANN at the request of stakeholders, and expect increased interest in all regions as part of global engagement to promote a healthy Internet eco-system “

“Ongoing support for, and development of, the Newcomer Program at ICANN meetings”

“Increased accessibility to ICANN materials through the dramatic increase in content translated into all six UN languages. Such translations have increased in volume by roughly 80 percent compared year-over-year. ”

“During FY13 there will be an increased use of outreach tools (e.g., provision of a framework for community use) and continuation of current discussions with the community to identify gaps in outreach strategy. The goal of the FY13 work is to support new ICANN community members to take on effective participatory roles, engage existing participants to become ambassadors in the regions, educate and develop leaders within the SO and AC communities, and support existing community members through training and development. “

25 projects identified with number of FTE  and $ for each.

(Need to cross reference against the Framework and our comments)

Here are a few

New Complaince System 1.2m$

Outreach  230k$

2013-2016 Strat Plan 45k$

New gTLD Second Round $175k

TradeMark ClearingHouse $438k

Uniform Rapid suspension $175k

WHOIS Programme  $969k

gTLD Budget Senarios for 500, 1000, 2000 aplications 

500 applications, net loss in asset -5m$ 

1000 applications, net gain in asset -0,6m$ 

2000 applications, net loss in asset +30m$ 

New gTLD Panels

Background Screening  :   Price Waterhouse Cooper
DNS Stability and String registry  : Interisle Consulting Group

String Similarity  :  InterConnect Communications

Geographical Nanes :  InterConnect Communications

Community Priority Evaluation  : InterConnect Communications & Economist Inteligence Unit

Financial Technical Operational : Ernst & Young, KPMG, JAS Global Advisors 

Quality Control  : JAS Global Advisors

SO /AC budget requests.
BC Requests  
Leadership from Developing Countries Programme $24k   YES APPROVED

Secretariat Travel   $6k NOT APPROVED
Outreach and Awareness Event $12k  YES APPROVED

BC Officer Travel $16k YES APPROVED

BC Newsletter  $7.5k  YES APPROVED

(See caveats on page 74)

In general most requests were approved. Total budget 530k$  

Secretariat Travel and Services was not approved to any Constituency.

CSG  BOP WG are  already studying the document and having a call next week  to coordinate CSG and BC comment. re

 <https://community.icann.org/pages/viewpage.action?pageId=31163092> https://community.icann.org/pages/viewpage.action?pageId=31163092

Hope this is helpful

Any comment or request  for more elaboration in a particular area most welcome

Best 

Chris Chaplow

Copy Paste for FY13 Draft Budget

Security, Stability and Resilience Operations (SSR)

Page 13

In FY13, budget resources required to support SSR activities are estimated at $9.1 million, a 14 percent increase over FY12’s forecast. The increase for SSR in FY13 is due to continued collaboration and engagement in the following activities: 

 Work with ICANN’s IT on improving internal infrastructure, network security improvements and mobile device practices 

 Implement recommendations of the Security, Stability and Resiliency Review Team 

 Support root resilience efforts, L-root expansion and contingency exercises with partners 

 DNS capability training with ccTLD operators, law enforcement and the operational security community (including Interpol, Commonwealth Cybercrime Initiative and other community partners) 

 Conduct DNS Risk Management Framework assessment based on recommendations from Board-level working group and influenced by community-driven DNS Security and Stability Analysis Working Group (DSSA-WG) 

 Continued engagement and adoption activities for DNSSEC with TLD operators, registrars, ISPs and enterprises; key ceremonies and support to SSAC work party on key rollover 

 Support the IDN Program with the next phase of the IDN variant project 

 Security support to gTLD Operations (TAS, Digital Archery and other system security) 

 Implement objectives contained in the FY13 SSR Framework after the community and Board of Directors buy-in 

 Follow best practices for internal Information Security and network operations 

 Physical security improvements in Los Angeles, Brussels and other ICANN office locations 

 Conduct 4th Global DNS SSR Symposium in FY13 in collaboration with the Anti-Phishing Working Group 

 Support to Global Partnerships and Regional Vice Presidents in representing ICANN 

 Provide thought leadership and expertise as requested by others in the Internet ecosystem, such as in the IT Sector DNS Risk Update, and participate in events such as the Internet Governance Forum 

Contractual Compliance

Page 14

In FY13, budget resources for Contractual Compliance are estimated to be $6.1 million, about 60 percent greater than FY12 forecast. It is mainly driven by (i) a Compliance department headcount increase from an average of 9 FTE in FY12 to 15 FTE in FY13 for approximately $1.1 million, (ii) Compliance audit for $0.5 million, (iii) Legal allocated costs increase for $0.4 million, (iv) other overhead increases for $0.3 million. The increase demonstrates ICANN’s continued commitment to “strengthen the Contractual Compliance function and its operations; and to establish clear performance measures and improve communication and reporting to the community”. 

Work in FY13 will focus in the following areas: 

 Continue to grow Compliance resources in numbers and expertise to: 1) improve operations with increased monitoring and proactive enforcement of the contracts and policies; 2) proactively engage and collaborate with registrars to improve compliance and reduce complaints; 3) promote a culture of compliance and increase compliance awareness among the contracted parties through global outreach activities 

 In addition, to support the augmented Contractual Compliance function, resource increases are planned for other ICANN departments, such as the Registrar and Registry Liaison teams, Legal (and external legal services), Information Technology, Finance, Security and Policy 

 Continue the effort to standardize operations, systems and tools for efficiency and effectiveness. This includes additional automation in complaint processing and tracking, rollout of an internal collaboration tool, enhancements to current systems to reflect the standard Contractual Compliance’s process and templates, launching a program to replace the current complaint intake systems and continue efforts in preparation for new gTLDs 

 Communicate, develop and implement the plan for a robust risk and audit strategy 

 Develop performance metrics for core operations and improve and deliver fact-based communications and reporting to the community 

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