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<p class="MsoNormal"><span style="font-size:11.0pt">Dear All,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Please find below the notes and action items from today’s meeting.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Best regards,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Marika<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><u><span style="font-size:11.0pt">Notes – new gTLD Auction Proceeds CCWG Meeting – 15 June 2017</span></u></b><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt"><o:p> </o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt">These high-level notes are designed to help the CCWG navigate through the content of the call and are not meant as a substitute for the transcript and/or recording. The MP3, transcript, and chat are provided
separately and are posted on the wiki at: <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_x_DLHDAw&d=DwMGaQ&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=7_PQAir-9nJQ2uB2cWiTDDDo5Hfy5HL9rSTe65iXLVM&m=4zHolvsBo6lsC2fsFnhbQd0l8fVzyqdj0t9oV6_NWjM&s=-vuUpZTVZXrpFcq3-nA--Ltl_ESCT71X4cBhx3axkEY&e=">https://community.icann.org/x/DLHDAw[community.icann.org]</a>.</span></i><span style="font-size:11.0pt"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Agenda:<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">1) Roll Call<o:p></o:p></span></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo1"><span style="font-size:11.0pt">Roll call will be taken from Adobe Connect<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l1 level1 lfo1"><span style="font-size:11.0pt">Please state name for transcription purposes and mute your microphones when not speaking<o:p></o:p></span></li></ul>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">2) Welcome / DOI<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">3) Briefing on Audit Requirements by Xavier Calvez including Q & A<o:p></o:p></span></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">See slides circulated by email and presentation provided by Xavier<o:p></o:p></span></li></ul>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">Q&A:<o:p></o:p></span></p>
<ul style="margin-top:0in" type="disc">
<li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">Is the audit conducted on the account for the auction proceed alone or for ICANN as a whole? The audit is conducted on the financial statements of ICANN
which includes the auction proceeds. ICANN now also performs an audit of PTI as it has its separate financial statements as a separate legal entity.<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">Is there a special account for the revenue from auction? Yes, auction proceeds are segregated and separated in separate accounts. Conservative approach
with regards to investing - approved by the Board and even more conservative than for what is used for the reserve fund as well as short term. Investments are made in USD as well as a number of international bonds but to a relatively limited extend.
<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">Regarding the fiduciaryrequirements that disbursements be made in accordance with ICANN’s mission, are the same auditors in charge of judging the level
of accordance? Auditors are not judging currently the framing of the mission. They have the obligation to ensure that the activities of the organisation are consistent with their mission.
<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">Because the auction proceed account is expected to be handled on its own… This implies and expenses of managing it has to be kept separately. And not
covered by ICANN? Any audit fees cover the whole audit of financial statements of ICANN - costs are not called out with regards to which parts are covered. There may be a need to separate out general costs in relation to auction proceeds, but this has not
been determined yet. <o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">How are investment choices made and what happens with the returns, are those tracked in ICANN's financial statements? Conservative choices made based
on information avaialble, interests are put back into the accounts. <o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">Are any costs currently covered from the auction proceeds? Currently 233 million on the account - no costs paid for by auction proceeds, even those certain
costs have been incurred in relation to the auction proceeds. Will ICANN absorb those costs or will these be taken from auction proceeds? For community to provide input on. Question is: to the extent that ICANN has incurred costs to date (in supporting the
CWG DT, this CWG and any other costs), should they be (a) absorbed by ICANN as part of general operation or (b) booked against the capital proceeds from the ICANN auctions?<o:p></o:p></span></li><li class="MsoListParagraph" style="margin-left:0in;mso-list:l0 level1 lfo2"><span style="font-size:11.0pt">If a separate organization is in charge of disbursing the funds, is it possible to "transfer" the legal requirements onto this separate agency? ICANN
ultimately has the same obligation, whether it is ICANN or another entitiy does the job of evaluation and disbursement. If it is another entity, additional mechanisms would need to be put in place to ensure that those obligations are met. For example, auditing
procedures before it starts, recurring checks, insight into evaluation process, controls after funds are disbursed etc. ICANN would need to carry out its own audit of this other entity - form would need to be decided. ICANN's obligation does not stop at the
time of disbursement - a whole set of obligations that start at that point. <o:p>
</o:p></span></li></ul>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">CCWG to continue discussion in Johannesburg.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt">Action item #1</span></b><span style="font-size:11.0pt">: Staff to share questions and responses noted with Xavier for review following which these will be incorporated in an FAQ and posted on the CCWG
wiki. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt">Action item #2</span></b><span style="font-size:11.0pt">: CCWG members and participants to circulate any additional questions to the mailing list so a complete overview can be developed.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">4) Reminder to participate in charter question #2 poll (see
<a href="https://www.surveymonkey.com/r/CCWGAPQuestion2">https://www.surveymonkey.com/r/CCWGAPQuestion2</a>)<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:11.0pt">Action item #3</span></b><span style="font-size:11.0pt">: CCWG members and participants to respond to survey by 21 June at the latest.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt">5) Confirmation of next meeting at ICANN59 - Tuesday, June 27 • 13:30 - 15:00 local time (11.30 - 13.00 UTC). See
<a href="http://sched.co/B3pK">http://sched.co/B3pK</a> for further details.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt"><o:p> </o:p></span></p>
<p class="MsoNormal"><b><i><span style="font-size:11.0pt">Marika Konings<o:p></o:p></span></i></b></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt">Vice President, Policy Development Support – GNSO, Internet Corporation for Assigned Names and Numbers (ICANN) <o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt">Email: <a href="mailto:marika.konings@icann.org">
<span style="color:#0563C1">marika.konings@icann.org</span></a> <o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt"> <o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt">Follow the GNSO via Twitter @ICANN_GNSO<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-size:11.0pt">Find out more about the GNSO by taking our <a href="http://learn.icann.org/courses/gnso"><span style="color:#0563C1">interactive courses</span></a> and visiting the <a href="http://gnso.icann.org/sites/gnso.icann.org/files/gnso/presentations/policy-efforts.htm#newcomers"><span style="color:#0563C1">GNSO
Newcomer pages</span></a>. <o:p></o:p></span></i></p>
<p class="MsoNormal"><o:p> </o:p></p>
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