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<p class="MsoNormal">All,<o:p></o:p></p>
<p class="MsoNormal">I apologize if I did not make the following clear: ICANN’s current policy is to have in place a reserve fund equivalent to at minimum 12 months of operating expenses. Refer to ICANN’s Investment Policy, see at
<a href="https://www.icann.org/resources/pages/investment-policy-2014-07-30-en">https://www.icann.org/resources/pages/investment-policy-2014-07-30-en</a>, see the paragraph “Size of Funds”, copied below).<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">“The Reserve Fund shall contain any amounts not contained in the Operating Fund. Any surplus funds will be used to build up the Reserve Fund to a balance sufficient to cover an emergency requirement. The Reserve Fund is expected to reach
and maintain a level of funds to maintain a minimum of 12 months of expected expenditures.“<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">I indicated that this level of a reserve fund is the commonly used in non-profit organizations.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal">Thank you.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Best,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Xavier<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Xavier Calvez<o:p></o:p></p>
<p class="MsoNormal">ICANN – SVP & CFO<o:p></o:p></p>
<p class="MsoNormal">12025 Waterfront Drive, Suite 300<o:p></o:p></p>
<p class="MsoNormal">Los Angeles, CA 90094<o:p></o:p></p>
<p class="MsoNormal">Phone: 310-301-5838<o:p></o:p></p>
<p class="MsoNormal">Mobile: 805-312-0052<o:p></o:p></p>
<p class="MsoNormal">Fax: 310-957-2348<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b><span style="font-size:12.0pt;color:black">From: </span></b><span style="font-size:12.0pt;color:black"><ccwg-auctionproceeds-bounces@icann.org> on behalf of Alan Greenberg <alan.greenberg@mcgill.ca><br>
<b>Date: </b>Thursday, August 10, 2017 at 1:41 PM<br>
<b>To: </b>Dietmar Stefitz <djs@bemarnet.es>, Michael Karanicolas <mkaranicolas@gmail.com>, Kavouss Arasteh <kavouss.arasteh@gmail.com><br>
<b>Cc: </b>"ccwg-auctionproceeds@icann.org" <ccwg-auctionproceeds@icann.org><br>
<b>Subject: </b>Re: [Ccwg-auctionproceeds] Notes & action items from today's CCWG-AP meeting<o:p></o:p></span></p>
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<div>
<p class="MsoNormal"><o:p> </o:p></p>
</div>
<p class="MsoNormal">To be clear, I don't think anyone on the call suggested we build up the reserve to a 12 or 24 month level of current budget. Xavier said that 1 year was a typical norm for non-profits, but in my opinion, there is no need for that, as in
the case of emergency, costs could be ramped down quickly. <br>
<br>
I vaguely recall that the level that we were targeting (before the drain from the CCWG-Acct expenses) was something like $80m. So even if we contributed enough to get back to that level, it would be perhaps $40m.
<br>
<br>
But the issue in my mind is not how much, but if.<br>
<br>
Alan<br>
<br>
At 10/08/2017 03:28 PM, Dietmar Stefitz wrote:<br>
<br>
<br>
<o:p></o:p></p>
<blockquote style="margin-top:5.0pt;margin-bottom:5.0pt">
<p class="MsoNormal">Hi Erika and all,<br>
<br>
I have been very astonished to hear the proposal to use the Auction Money in filling up the reserve account of ICANN.<br>
Filling up for 12 month reserve or 24 month reserve, if we have to take 24 month, there will not be much left to disburse to other projects.<br>
<br>
I thought that the call from Xavier has been to explain specially the Investment of the fund at this moment, for which I can only congratulate.<br>
A 1% return on a super save investment is not bad, and it should be made like this in the future.<br>
<br>
I would absolutely be against a filling up of the reserve fund from the auction proceeds, at least as a decision from this group.<br>
Or did I misunderstand something?<br>
<br>
Dietmar Stefitz<br>
<br>
<br>
<br>
<br>
<br>
<br>
Thursday, August 10, 2017, 8:05:56 PM, you wrote:<br>
<br>
<b>MK> Hi Kavouss,<br>
<br>
MK> Am I missing something - or are you suggesting that the CCWG should<br>
MK> only determine whether or not money be fed into ICANN's reserve<br>
MK> account, without also indicating what proportion should be used to<br>
MK> that effect?<br>
<br>
MK> If so - I don't see how the CCWG could consider anything beyond that<br>
MK> simple yes/no question, as we'd have no indication how much money we<br>
MK> would have leftover to work with, once the reserve is replenished.<br>
MK> Decisions about allocation priorities can't really be made unless we<br>
MK> also look at how the pie should be portioned out, right?<br>
<br>
MK> Michael Karanicolas<br>
<br>
MK> On Thu, Aug 10, 2017 at 2:50 PM, Kavouss Arasteh<br>
MK> <</b><a href="mailto:kavouss.arasteh@gmail.com"> kavouss.arasteh@gmail.com</a><b>> wrote:<br>
<br>
<br>
>> Dear Erika, Dear All,<br>
<br>
>> Today during the last 15 mints of the call I tried to draw your attention to<br>
>> allow me to intervene on the views expressed by Alan reading the Reserve<br>
>> account.<br>
<br>
>> If I have well understood his statement he wanted that CCWG discuss the<br>
>> level of ICANN reserve account which was announced by Xavier to be<br>
>> equivalent to one year budget as objective. As Xavier mentioned this level<br>
>> has not been reached.<br>
<br>
>> Alan’s view that CCWG discuss the level of ICANN reserve account is outside<br>
>> the mandate of CCWG. We may just decide whether or not that account be fed<br>
>> by using Auction money but decision on the appropriate level of the reserve<br>
>> account is totally outside or mandate as it is a decision to be made by the<br>
>> Board and not by this group<br>
<br>
>> Regards<br>
<br>
>> Kavouss<br>
<br>
<br>
>> On Thu, Aug 10, 2017 at 5:56 PM, Joke Braeken <</b><a href="mailto:joke.braeken@icann.org">joke.braeken@icann.org</a>
<b>><br>
>> wrote:<br>
<br>
>>> Dear All,<br>
<br>
<br>
<br>
>>> Please find below the notes and action items from today’s CCWG-AP meeting.</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> Best regards,</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> Joke Braeken</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> Notes CCWG – AP Meeting 10 August 2017:</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> These high-level notes are designed to help the CCWG navigate through the</b><b><span style="font-family:"PMingLiU",serif"><br>
</span></b><b>>>> content of the call and are not meant as a substitute for the transcript<br>
>>> and/or recording. The MP3, transcript, and chat are provided separately and<br>
>>> are posted on the wiki at: </b><a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_x_DLHDAw&d=DwMFAw&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=IWWGaKyGUGcKQNGe7LtArAou7HP6fPR5aWjbPBUFZ3k&m=HKuU-9DAESnqcGMIdaNf5MeIgsXuBdt1W6-AYHyIJIc&s=6OyX-H7GEmBCRJWXNDGE46VvO6oDVoRB82Z2AeomXAg&e=">https://community.icann.org/x/DLHDAw[community.icann.org]</a><b>.<br>
<br>
<br>
<br>
>>> Roll Call<br>
<br>
<br>
<br>
>>> Please state your name for transcription purposes and keep microphones on<br>
>>> mute when not speaking.<br>
>>> Attendance will be taken from the AdobeConnect room.<br>
<br>
<br>
<br>
>>> Welcome – DOI</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> Overview from Xavier Calvez on investment management<br>
<br>
<br>
<br>
>>> The intention of this presentation is<br>
<br>
>>> to allow the group to think on the issue of investment,<br>
>>> to understand ICANN's practice, and to answer any questions that might be<br>
>>> raised.<br>
<br>
>>> It helps to inform the discussion on the ROI of the fund; It includes an<br>
>>> overview of how the auction proceeds are currently managed, which might lead<br>
>>> to how they might be managed in the future.<br>
<br>
<br>
<br>
>>> Important to note:<br>
<br>
>>> only conservative investment policies are being used<br>
>>> the investment strategy will be designed in support of the objectives<br>
<br>
<br>
<br>
>>> An overview of some illustrative investment scenarios was provided,<br>
>>> followed by Q&A.<br>
<br>
<br>
<br>
>>> Parameters that need to be considered:<br>
<br>
>>> amount of money<br>
>>> horizon<br>
>>> level of risk (which is not correlated to the horizon)<br>
<br>
<br>
<br>
>>> Financial information is regularly provided during the quarterly<br>
>>> stakeholder calls.<br>
<br>
>>> (amount from latest update - Q3 data of FY17.<br>
</b>>>> <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.icann.org_quarterlyreports&d=DwMFAw&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=IWWGaKyGUGcKQNGe7LtArAou7HP6fPR5aWjbPBUFZ3k&m=HKuU-9DAESnqcGMIdaNf5MeIgsXuBdt1W6-AYHyIJIc&s=baFsmaqAdvnSkJG4eoXhzZNn5-StHSA9z08s4kUvK4E&e=">
https://www.icann.org/quarterlyreports[icann.org]</a><b>)<br>
<br>
>>> Reserve Fund: 64 million<br>
>>> New gTLD unspent application fees: 128 million<br>
>>> Auction proceeds: 233 million<br>
>>> Annual budget of ICANN. FY18 budget expenses 142 million USD.<br>
<br>
<br>
<br>
>>> Regarding replenishing the reserve fund: appropriate procedures need to be<br>
>>> taken, appropriate approvals and decisions need to be in place for it to be<br>
>>> legal.<br>
<br>
>>> This is however a moral question as well. The charter does include this<br>
>>> question: “To what extent (and, if so, how) could ICANN, the Organization or<br>
>>> a constituent part thereof, be the beneficiary of some of the auction funds”</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
</span></b><b>>>> The group needs to discuss this at a later stage.</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> Next meeting</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> next CCWG-AP meeting is scheduled for Thursday 24 August at 14.00 UTC</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> = = = =<br>
<br>
<br>
<br>
>>> Action item #1:<br>
<br>
>>> CCWG to review the slides presented by Xavier (published on<br>
</b>>>> <a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__community.icann.org_display_CWGONGAP_2017-2D08-2D10-2BCCWG-2BNew-2BgTLD-2BAuction-2BProceeds-2Bcall&d=DwMFAw&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=IWWGaKyGUGcKQNGe7LtArAou7HP6fPR5aWjbPBUFZ3k&m=HKuU-9DAESnqcGMIdaNf5MeIgsXuBdt1W6-AYHyIJIc&s=FQiYsQAxL7CV_3RJCSjIYJtSMgDGoFBN-QeXmJoUPBU&e=">
https://community.icann.org/display/CWGONGAP/2017-08-10+CCWG+New+gTLD+Auction+Proceeds+call[community.icann.org]</a>
<b>)<br>
>>> and to share any further questions for Xavier on the group’s mailing list.</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
<br>
<br>
</span></b><b>>>> Action item #2:</b><b><span style="font-family:"PMingLiU",serif"><br>
<br>
</span></b><b>>>> Per the discussion during the CCWG-AP meeting on 27 July 2017, the</b><b><span style="font-family:"PMingLiU",serif"><br>
</span></b><b>>>> attached mind map was developed, which aims to regroup the objectives based<br>
>>> on the survey results as well as the subsequent discussions. The CCWG is<br>
>>> encouraged to continue to provide feedback on the proposed regrouping of<br>
>>> objectives/priorities, as well as the clustering of examples ahead of the<br>
>>> next meeting, scheduled for 24 August at 14 UTC.<br>
<br>
<br>
<br>
>>> Action item #3:<br>
<br>
>>> CCWG to review responses to charter question #4 and to continue the<br>
>>> discussion on the mailing list.<br>
<br>
>>> (see </b><a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.surveymonkey.com_results_SM-2D6GNDQHJ6_&d=DwMFAw&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=IWWGaKyGUGcKQNGe7LtArAou7HP6fPR5aWjbPBUFZ3k&m=HKuU-9DAESnqcGMIdaNf5MeIgsXuBdt1W6-AYHyIJIc&s=yulKeXnAn5CN2_dNRAj8nx_5IeuwBT4F1Heh3dtZJWI&e=">https://www.surveymonkey.com/results/SM-6GNDQHJ6/[surveymonkey.com]</a><b>
)<br>
<br>
<br>
<br>
>>> = = = =<br>
<br>
<br>
<br>
<br>
<br>
>>> Joke Braeken<br>
<br>
>>> ccNSO Policy Advisor<br>
<br>
</b><a href="mailto:joke.braeken@icann.org">>>> joke.braeken@icann.org</a><br>
<br>
<br>
<br>
<b>>>> Follow @ccNSO on Twitter: </b><a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__twitter.com_ccNSO&d=DwMFAw&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=IWWGaKyGUGcKQNGe7LtArAou7HP6fPR5aWjbPBUFZ3k&m=HKuU-9DAESnqcGMIdaNf5MeIgsXuBdt1W6-AYHyIJIc&s=ksIYlCk3ZzcyyNbJFUxushrbiDZC4_lO_WVwmhRrWG4&e=">https://twitter.com/ccNSO[twitter.com]</a><br>
<br>
<b>>>> Follow the ccNSO on Facebook: </b><a href="https://urldefense.proofpoint.com/v2/url?u=https-3A__www.facebook.com_ccnso_&d=DwMFAw&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=IWWGaKyGUGcKQNGe7LtArAou7HP6fPR5aWjbPBUFZ3k&m=HKuU-9DAESnqcGMIdaNf5MeIgsXuBdt1W6-AYHyIJIc&s=K_zzz3ZhAdQ0ckOqfmq_HvpwupZ-DfQbOd39kyGgqsI&e=">https://www.facebook.com/ccnso/[facebook.com]</a><br>
<br>
>>> <a href="https://urldefense.proofpoint.com/v2/url?u=http-3A__ccnso.icann.org_&d=DwMFAw&c=FmY1u3PJp6wrcrwll3mSVzgfkbPSS6sJms7xcl4I5cM&r=IWWGaKyGUGcKQNGe7LtArAou7HP6fPR5aWjbPBUFZ3k&m=HKuU-9DAESnqcGMIdaNf5MeIgsXuBdt1W6-AYHyIJIc&s=kopXyX7wBTECByzaEGsPL-Mbcct5zfvtn4kCkugUF3I&e=">
http://ccnso.icann.org[ccnso.icann.org]</a><br>
<br>
<br>
<br>
<br>
<b>>>> _______________________________________________<br>
>>> Ccwg-auctionproceeds mailing list<br>
</b><a href="mailto:Ccwg-auctionproceeds@icann.org">>>> Ccwg-auctionproceeds@icann.org</a><br>
>>> <a href="https://mm.icann.org/mailman/listinfo/ccwg-auctionproceeds">https://mm.icann.org/mailman/listinfo/ccwg-auctionproceeds</a><br>
<br>
<br>
<br>
<b>>> _______________________________________________<br>
>> Ccwg-auctionproceeds mailing list<br>
</b><a href="mailto:Ccwg-auctionproceeds@icann.org">>> Ccwg-auctionproceeds@icann.org</a><br>
>> <a href="https://mm.icann.org/mailman/listinfo/ccwg-auctionproceeds">https://mm.icann.org/mailman/listinfo/ccwg-auctionproceeds</a><br>
<b>MK> _______________________________________________<br>
MK> Ccwg-auctionproceeds mailing list<br>
</b><a href="mailto:Ccwg-auctionproceeds@icann.org">MK> Ccwg-auctionproceeds@icann.org</a><br>
MK> <a href="https://mm.icann.org/mailman/listinfo/ccwg-auctionproceeds">https://mm.icann.org/mailman/listinfo/ccwg-auctionproceeds</a><br>
<br>
<br>
<br>
<i>-- <br>
Saludos,<br>
Dietmar <br>
<br>
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<o:p></o:p></p>
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