<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40"><head><meta http-equiv=Content-Type content="text/html; charset=utf-8"><meta name=Generator content="Microsoft Word 12 (filtered medium)"><style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Tahoma;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0cm;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri","sans-serif";}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:blue;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:purple;
text-decoration:underline;}
p.MsoAcetate, li.MsoAcetate, div.MsoAcetate
{mso-style-priority:99;
mso-style-link:"Texto de globo Car";
margin:0cm;
margin-bottom:.0001pt;
font-size:8.0pt;
font-family:"Tahoma","sans-serif";}
span.EstiloCorreo17
{mso-style-type:personal-compose;
font-family:"Calibri","sans-serif";
color:windowtext;}
p.Default, li.Default, div.Default
{mso-style-name:Default;
margin:0cm;
margin-bottom:.0001pt;
text-autospace:none;
font-size:12.0pt;
font-family:"Calibri","sans-serif";
color:black;}
span.TextodegloboCar
{mso-style-name:"Texto de globo Car";
mso-style-priority:99;
mso-style-link:"Texto de globo";
font-family:"Tahoma","sans-serif";}
.MsoChpDefault
{mso-style-type:export-only;
font-size:10.0pt;}
@page WordSection1
{size:612.0pt 792.0pt;
margin:70.85pt 3.0cm 70.85pt 3.0cm;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]--></head><body lang=ES link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span lang=EN-US>Dear BC members,<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Here are my early bird notes on Draft FY13 Budget which was published on time 1 May 2012. <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>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. <o:p></o:p></span></p><p class=MsoNormal><a href="http://www.icann.org/en/news/public-comment/op-budget-fy13-01may12-en.htm"><span lang=EN-US>http://www.icann.org/en/news/public-comment/op-budget-fy13-01may12-en.htm</span></a><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><u><span lang=EN-US>Highlights<o:p></o:p></span></u></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>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).<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>General revenue up to 78m$ in FY13 from 70m$ in FY12 Budget and 71m$ in FY12 Forcast<br>Plus gTLD at 61m$ (part of 500 x 185k$ = 990m$)<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Operating Expenses 18% up 74m$ in FY13 from 71m$ in FY12 Budget and 63m$ in FY12 Forcast<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>ie FY12 expenses are significant under budget<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Personal costs 18% up to 30.9m$ in FY13<br>Staff levels up from 149 to 189<br>Professional sevvices up 39% to 20.6m$ <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US>SSR</span></b><span lang=EN-US> - <b>14% up</b> to 9.3 m$ in FY13 from 8.7 m$ in FY12 Budget and 8.0 m$ in FY12 Forcast<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US>Compliance</span></b><span lang=EN-US> - 60% up to 6.1 m$ in FY13 from 4.8 m$ in FY12 Budget and 3.8 m$ in FY12 Forcast<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>Ie FY12 expenses are significant under budget.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>Contract Compliance up to 20 for FY13<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>“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.”<br>(cross check 9FTE which is not as previously reported in CR) <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US style='font-size:11.5pt'>Meeting</span></b><span lang=EN-US style='font-size:11.5pt'> team increased for 11FTE to 13 FTE. Meeting sponsorship at 400k per meeting. Only 2 meeting in FY13<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>No <b>fellowship</b> budget identified<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>No<b> communication</b> dept budget identified<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Large text on <b>Global engagement</b> including: <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'>“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 “<o:p></o:p></span></p><p class=Default><span lang=EN-US><o:p> </o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'>“Ongoing support for, and development of, the <b>Newcomer Program</b> at ICANN meetings”<br><br><o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'>“Increased accessibility to ICANN materials through the dramatic increase in content translated into all six <b>UN languages</b>. Such translations have increased in volume by roughly 80 percent compared year-over-year. ”</span><span lang=EN-US><o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'> “During FY13 there will be an increased use of <b>outreach</b> 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. “<o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US style='font-size:11.5pt'>25 projects</span></b><span lang=EN-US style='font-size:11.5pt'> identified with number of FTE and $ for each.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>(Need to cross reference against the Framework and our comments)<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Here are a few<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>New Complaince System 1.2m$<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Outreach 230k$<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>2013-2016 Strat Plan 45k$<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>New gTLD Second Round $175k<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>TradeMark ClearingHouse $438k<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Uniform Rapid suspension $175k<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>WHOIS Programme $969k<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US style='font-size:11.5pt'>gTLD Budget Senarios</span></b><span lang=EN-US style='font-size:11.5pt'> for 500, 1000, 2000 aplications <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>500 applications, net loss in asset -5m$ <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>1000 applications, net gain in asset -0,6m$ <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>2000 applications, net loss in asset +30m$ <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US style='font-size:11.5pt'>New gTLD Panels<o:p></o:p></span></b></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Background Screening : Price Waterhouse Cooper<br>DNS Stability and String registry : Interisle Consulting Group<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>String Similarity : InterConnect Communications<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Geographical Nanes : InterConnect Communications<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Community Priority Evaluation : InterConnect Communications & Economist Inteligence Unit<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Financial Technical Operational : Ernst & Young, KPMG, JAS Global Advisors <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Quality Control : JAS Global Advisors<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US style='font-size:11.5pt'>SO /AC budget requests.</span></b><span lang=EN-US style='font-size:11.5pt'><br>BC Requests <br>Leadership from Developing Countries Programme $24k YES APPROVED<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Secretariat Travel $6k NOT APPROVED<br>Outreach and Awareness Event $12k YES APPROVED<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>BC Officer Travel $16k YES APPROVED<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>BC Newsletter $7.5k YES APPROVED<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>(See caveats on page 74)<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>In general most requests were approved. Total budget 530k$ <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'>Secretariat Travel and Services was not approved to any Constituency.<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>CSG BOP WG are already studying the document and having a call next week to coordinate CSG and BC comment. re<o:p></o:p></span></p><p class=MsoNormal><a href="https://community.icann.org/pages/viewpage.action?pageId=31163092"><span lang=EN-US>https://community.icann.org/pages/viewpage.action?pageId=31163092</span></a><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Hope this is helpful<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>Any comment or request for more elaboration in a particular area most welcome<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US>Best <o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal style='mso-margin-top-alt:auto;mso-margin-bottom-alt:auto'><b><span lang=EN-US style='font-size:10.0pt;font-family:"Tahoma","sans-serif";color:#0B710A'>Chris Chaplow</span></b><b><span lang=EN-US style='font-size:10.0pt;font-family:"Tahoma","sans-serif";color:#0B710A'><br><br></span></b><span style='font-size:12.0pt;font-family:"Times New Roman","serif"'><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>Copy Paste for FY13 Draft Budget<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=MsoNormal><b><span lang=EN-US style='font-size:11.5pt;color:#03405F'>Security, Stability and Resilience Operations (SSR)</span></b><span lang=EN-US><o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US>Page 13<o:p></o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'>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: <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Work with ICANN’s IT on improving internal infrastructure, network security improvements and mobile device practices <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Implement recommendations of the Security, Stability and Resiliency Review Team <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Support root resilience efforts, L-root expansion and contingency exercises with partners <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> DNS capability training with ccTLD operators, law enforcement and the operational security community (including Interpol, Commonwealth Cybercrime Initiative and other community partners) <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> 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) <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> 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 <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Support the IDN Program with the next phase of the IDN variant project <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Security support to gTLD Operations (TAS, Digital Archery and other system security) <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Implement objectives contained in the FY13 SSR Framework after the community and Board of Directors buy-in <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Follow best practices for internal Information Security and network operations <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span style='font-size:11.5pt'> <span lang=EN-US>Physical security improvements in Los Angeles, Brussels and other ICANN office locations <o:p></o:p></span></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Conduct 4th Global DNS SSR Symposium in FY13 in collaboration with the Anti-Phishing Working Group <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Support to Global Partnerships and Regional Vice Presidents in representing ICANN <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> 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 <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><b><span style='font-size:11.5pt;color:#03405F'>Contractual Compliance<o:p></o:p></span></b></p><p class=Default><b><span style='font-size:11.5pt;color:#03405F'>Page 14</span></b><span lang=EN-US style='font-size:11.5pt'><o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'>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 <b>“strengthen the Contractual Compliance function and its operations; and to establish clear performance measures and improve communication and reporting to the community”. </b><o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'>Work in FY13 will focus in the following areas: <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> 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 <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> 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 <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> 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 <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Communicate, develop and implement the plan for a robust risk and audit strategy <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=Default><span style='font-size:11.5pt'></span><span lang=EN-US style='font-size:11.5pt'> Develop performance metrics for core operations and improve and deliver fact-based communications and reporting to the community <o:p></o:p></span></p><p class=Default><span lang=EN-US style='font-size:11.5pt'><o:p> </o:p></span></p><p class=MsoNormal><span lang=EN-US><o:p> </o:p></span></p></div></body></html>