[Gnso-sc-budget] DRAFT PTI and IANA FY21 Operating Plan and Budgets

Wed Nov 20 20:02:35 UTC 2019

Hello all, 

I'd like to start the e-mail discussion if it is inline with the SCBO practice.

Short version: the budget does not show details, so it is quite hard to understand 
if the spendings/costs of services/software/hardware are high/low/ok? And some additional questions follow.

===
Long version:

Some background information:

1) The Draft FY21 PTI Services budget is $10.0M, which is an increase of $0.1M to the FY20 Forecast. 
The variances to FY20 Forecast are:

Personnel costs, which increased $0.3M driven by inflationary adjustments.

Travel and Meetings, including travel and venue costs for outreach, meetings, and PTI Board activities, which is flat compared to FY20 Forecast.

Professional Services, including contractor services, legal fees and audit services, which is flat compared to FY20 Forecast.

Administration, including rent and other facilities costs, software, and general office expenses, which decreased $0.2M from the prior year driven by reducing general Comms and E&IT activities in Direct Shared services.

Contingency for unforeseen and unallocated costs remain flat compared to FY20 Forecast.

Capital costs remain flat compared to FY20 Forecast.
	https://www.icann.org/en/system/files/files/draft-pti-op-budget-fy21-14oct19-en.pdf  

2) The Draft FY21 IANA Budget is $10.6M, of which $10.0M is for PTI Services and $0.6M is for IANA Services (not performed by PTI). 

The PTI Services increased by $0.1M versus FY20 Forecast primarily driven by inflationary Personnel increases, partially offset by decreases in direct shared activities. The IANA Services component is flat to FY20 Forecast.
	https://www.icann.org/en/system/files/files/draft-iana-op-budget-fy21-28sep18-en.pdf 

===
Overarching Points
The FY21 budget is fiscally prudent in that it is forecast to only marginally exceed the FY20 forecast. Which is not bad.

The budget as presented is lacking in underlying detail and any apparent linkage to a strategic plan and this makes it difficult to comment in substantial detail on any of the key areas of expenditure

The format is a statement of the budget as planned. Community input and comment may be better facilitated by the authors providing specific questions around key expenditure for community input and comment.

===

The FY21 budget as presented represents (US$10.6M) a marginal increase on FY20 and therefore appears to be fiscally prudent.

That said, the FY20 forecast of US$10.5M represents a significant uplift on the FY19 actuals so the apparent prudence of FY21 needs to be seen in that context.

Review of the budget as presented presents a challenge to a third party seeking to comment. 

For example, Section 4 provides clear and useful descriptions of the activities carried out in various areas of work.

 But there are no questions posed to anyone commenting or indications of the choices or compromises being made. 

Absent such information, it is challenging for a commenter to provide substantial or material input.

It is understandable that the process necessitates that this budget is for a reasonably long time ahead and therefore it is challenging to provide some of the details but, recognising this, alternatives to the current presentation should be considered. 

The development and socialisation of a longer term view - strategic plan for the IANA services - and the linkage of such a plan to the budgets may help here.

Fiscal prudence is only one parameter and, should the IANA services require investment, it would be necessary to understand  what may be required in the form of such investment. 

More interactive style of budget would be a nice thing to have.

For example, the budget as presented could offer more than one option for investment. 

Such an approach could offer two or even three options along the lines of a base budget, a development budget and an investment budget that the community could comment on. 

===
Additional bits: 

Software is included in the $0.9M Administration budget. No details offered.

Hardware is part of the $0.3M Depreciation budget. PTI does not own hardware, it pays ICANN for it at the cost of depreciation.
Based on standard 5-year depreciation for hardware that’s a maximum $1.5M hardware budget (other items will be included in depreciation like furniture, etc…)
The figure is well within expectations for what they run, but the discount from the base price is unknown (procured above the market ? we can not tell 
without any kind of details).

There is no telling if a 23 fte headcount is reasonable or not for the workload they cover, but the ratio Personnel budget over fte is in line with (rather high) California or Virginia labour costs.

Fluctuations from one year to the next seem to be low.

The only increase is an additional 5% ($0.3M) which might be a  part in shifting Shared resources into Dedicated resources (resulting in a decrease of Administration costs) and part natural salary inflation. (but this is just a theory in addition to inflation compensation)

Sincerely Yours,

Maxim Alzoba
Special projects manager,
International Relations Department,
FAITID

m. +7 916 6761580(+whatsapp)
skype oldfrogger

Current UTC offset: +3.00 (.Moscow)

> On 13 Nov 2019, at 16:51, Drazek, Keith via Gnso-sc-budget <gnso-sc-budget at icann.org> wrote:
> 
> Thanks to Berry for getting the SCBO started on this.
>  
> All SCBO members: Please review so we can discuss on the upcoming call.
>  
> Keith
>  
> From: Gnso-sc-budget <gnso-sc-budget-bounces at icann.org> On Behalf Of policy at bacinblack.com
> Sent: Sunday, November 10, 2019 12:32 PM
> To: gnso-sc-budget at icann.org
> Cc: gnso-secs at icann.org
> Subject: [EXTERNAL] [Gnso-sc-budget] DRAFT PTI and IANA FY21 Operating Plan and Budgets
>  
> Hi All,
>  
> While we finalize the SCBO roster for the 2019-2020 term, I wanted to get a draft of comments in front of you as soon as possible. The public comment period for FY21 PTI/IANA closes 27 Nov 2019. Attached is a red-line draft for FY21 as updated from last fiscal year’s 2020 version. Of the FY21 documents offered, little has changed from FY20 and it seemed easier to start from the Council’s comment of last year for an easier comparison.
>  
> From a pure financial perspective, the following quote (IANA Op Plan & Budget, p. 5) provides perspective, “The Draft FY21 IANA Budget is $10.6M, of which $10.0M is for PTI Services and $0.6M is for IANA Services (not performed by PTI). The PTI Services increased by $0.1M versus FY20 Forecast primarily driven by inflationary Personnel increases, partially offset by decreases in direct shared activities. The IANA Services component is flat to FY20 Forecast.”
>  
> For the FY21 comment, the SCBO and full Council may want to consider further if there’s any budget or funding related issues regarding the policy aspects. The Council was greatly involved in finding/replacing GNSO candidates for the IFRT as of recent. Additionally, a working group on RSSAC Governance evolution will begin soon. These do not have direct connections to GNSO policy development, but they do impact Council operations and outcomes of those policy efforts do impact gTLDs. Just thoughts to ponder on.
>  
> Lastly, we will send a doodle poll in attempts to have a brief meeting to discuss the draft of comments for the week of November 18th. I’m not expecting much discussions to finalize the draft of comments, but it will also help to set the cadence and determine the best times to meet later in December.
>  
> Thank you.
>  
> B
>  
> Berry Cobb
> @berrycobb
> GNSO Policy Consultant
>  
> From: Gnso-sc-budget <gnso-sc-budget-bounces at icann.org> On Behalf Of policy at bacinblack.com
> Sent: Wednesday, October 16, 2019 17:59
> To: gnso-sc-budget at icann.org
> Subject: [Gnso-sc-budget] FW: ICANN News Alert -- DRAFT PTI and IANA FY21 Operating Plan and Budgets
>  
> Hi All,
>  
> Please see the announcement below signaling the launch of the FY21 Operating Plan and Budget cycle. The GNSO Council’s comment for FY20 <https://community.icann.org/download/attachments/97845642/FY20%20IANA-PTI%20Proposed%20OpPlan%20Budget%20-%20GNSO%20Draft%20%20Comments_v1.0.docx?version=1&modificationDate=1542108741000&api=v2> can be found on the wiki.
>  
> You will see a separate email starting a thread on the steps ahead of the SCBO. 
>  
>  
> Thank you.
>  
> B
>  
>  
> Berry Cobb
> @berrycobb
> GNSO Policy Consultant
>  
> From: ICANN <no-reply at external.icann.org <mailto:no-reply at external.icann.org>> 
> Sent: Monday, October 14, 2019 18:18
> To: policy at bacinblack.com <mailto:policy at bacinblack.com>
> Subject: ICANN News Alert -- DRAFT PTI and IANA FY21 Operating Plan and Budgets
>  
>  
> 
> 
> DRAFT PTI and IANA FY21 Operating Plan and Budgets <https://newsalerts.icann.org/WC01eNR0P0L2Ed60020m000>
> 14 October 2019
> 
> Open Date:
> 14 October 2019
> Close Date:
> 27 November 2019
> Originating Organization:
> Finance
> 
> Categories/Tags:
> Operations/Finance
> Accountability/Transparency
> Brief Overview:
> Focusing on ICANN's commitment to the multistakeholder model, the ICANN organization seeks public comment on the operating plan and budgets for delivering the IANA functions. This is comprised of two components — the Draft FY21 Public Technical Identifiers (PTI) Operating Plan and Budget and the Draft FY21 Internet Assigned Numbers Authority (IANA) Operating Plan and Budget. The PTI Operating Plan and Budget outlines the activities to deliver the core IANA functions and associated operational activities to enhance systems and processes. The IANA Operating Plan and Budget is comprised of these PTI activities, plus additional programs and costs associated with overseeing and delivering the IANA functions performed by ICANN in its role as the IANA Functions Operator that are not borne directly by PTI.
> 
> ICANN seeks structured feedback on the plans described in these documents.
> 
> Link:
> https://www.icann.org/public-comments/draft-pti-iana-fy21-op-budget-2019-10-14-en <https://newsalerts.icann.org/wRmEN0dCP000061f0022M00>
>  
> 
> About ICANN
> 
> ICANN’s mission is to help ensure a stable, secure, and unified global Internet. To reach another person on the Internet, you need to type an address – a name or a number – into your computer or other device. That address must be unique so computers know where to find each other. ICANN helps coordinate and support these unique identifiers across the world. ICANN was formed in 1998 as a not-for-profit public-benefit corporation with a community of participants from all over the world.
> 
>  
> 
> 
>  <https://newsalerts.icann.org/hP61N0R00C0002d0N020Egm>	
>  <https://newsalerts.icann.org/K0020CR00P0O2hdm601N0E0>	
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