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

Thu Nov 21 20:12:10 UTC 2019

Hi Jimson and All,

For further input to the draft of comments, can you please add them to this Google doc for the SCBO’s consideration? Please use SUGGESTION mode when make any suggested edits.

https://docs.google.com/document/d/1ZQowB788fEuQ0d-Xl-dMTGnWRBMECO_L/edit

Thank you.

B

Berry Cobb

@berrycobb 

GNSO Policy Consultant

From: Gnso-sc-budget <gnso-sc-budget-bounces at icann.org> On Behalf Of Jimson Olufuye
Sent: Wednesday, November 20, 2019 17:08
To: 'Maxim Alzoba' <m.alzoba at gmail.com>; 'gnso-sc-budget at icann.org'
Cc: 'gnso-secs at icann.org'
Subject: Re: [Gnso-sc-budget] DRAFT PTI and IANA FY21 Operating Plan and Budgets

Hi all,

Please find below the text of the comment I made on the call for further review...

-------------------------------------------

The GNSO noted PTI’s expectation in Fiscal Year (FY) 21 to deliver a comprehensive set of systems and tools to support protocol parameter assignment workflows following a multi-year development effort. This is a welcome development and it is GNSO’s expectation that PTI will continue to focus on service improvement as a culture.

As an improvement, the GNSO would recommend that PTI indicates the expected end of similar projects going forward. Projects and Programmes should have start dates and proposed end dates which are subject to change based on management approval. The idea behind this is to avoid unending/unpredictable multi-year efforts. Once the project/Programme is completed, it can be absorbed into the general day-to-day activity as part of what is called “business as usual”.

While it was noted that the PTI Budget of US$10m is an increase of only 1% of the preceding year’s budget (US$9.9m) due to inflation with respect to (wrt) personnel compensation, for transparency purpose, it would be appropriate to indicate the comparative inflationary rate utilized.

Furthermore, looking at the table below wrt “Funding” row and “Under/(Over)” column:

Clarification is solicited on whether an increase of US$100,000 over the FY20 budget for FY21 Budget should be classified as a depreciation [($0.1) ==> -1.2%] rather than an increase. It seems it could be depreciation if it is the other way round such that if it is a decrease of US$100,000.00.

=======================

Cheers,

Jimson Olufuye

BC

------------------------------------------------------------------------
Jimson Olufuye PhD 

(fncs, ficma, PRINCE2, CISA, CISM, CRISC, PhD)

CEO Kontemporary® 

Consulting | Outsourcing | Cybersecurity

Systems Integration | Maintenance Services

www.kontemporary.net.ng <http://www.kontemporary.net.ng>  
Voice: 234 802 3183252

Data: 234 816 5012368
Skype: jolufuye

This email is for the exclusive recipient/s and it may contain confidential materials. If you have received it and it is not meant for you, please alert me @ jolufuye at kontemporary.net <mailto:jolufuye at kontemporary.net>  or discard at once. Thank you.

--------- Original Message --------- 

Subject: Re: [Gnso-sc-budget] DRAFT PTI and IANA FY21 Operating Plan and Budgets
From: 'Maxim Alzoba' <m.alzoba at gmail.com <mailto:m.alzoba at gmail.com> >
Date: 11/20/19 10:02 pm
To: 'gnso-sc-budget at icann.org' <gnso-sc-budget at icann.org <mailto:gnso-sc-budget at icann.org> >
Cc: 'gnso-secs at icann.org' <gnso-secs at icann.org <mailto:gnso-secs at icann.org> >

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 <mailto: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 <mailto:gnso-sc-budget-bounces at icann.org> > On Behalf Of policy at bacinblack.com <mailto:policy at bacinblack.com> 
> Sent: Sunday, November 10, 2019 12:32 PM
> To: gnso-sc-budget at icann.org <mailto:gnso-sc-budget at icann.org> 
> Cc: gnso-secs at icann.org <mailto: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 <mailto:gnso-sc-budget-bounces at icann.org> > On Behalf Of policy at bacinblack.com <mailto:policy at bacinblack.com> 
> Sent: Wednesday, October 16, 2019 17:59
> To: gnso-sc-budget at icann.org <mailto: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 <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> &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%20> ><mailto:no-reply at external.icann.org>> 
> Sent: Monday, October 14, 2019 18:18
> To: policy at bacinblack.com <mailto: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> 
> <https://newsalerts.icann.org/y10Cm26N0d0PERP00i00020> 
> <https://newsalerts.icann.org/l0R2j000P1m60E2d00N0Q0C> 
> <https://newsalerts.icann.org/o02RN00k00016C00mERd2P0> 
> 
> Unsubscribe <https://newsalerts.icann.org/XdP06lR0N000E00m2021CS0> | https://www.icann.org <https://newsalerts.icann.org/r00T0E200RmPmNC160020d0> 
> _______________________________________________
> Gnso-sc-budget mailing list
> Gnso-sc-budget at icann.org <mailto:Gnso-sc-budget at icann.org> 
> https://mm.icann.org/mailman/listinfo/gnso-sc-budget
> _______________________________________________
> By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (https://www.icann.org/privacy/policy) and the website Terms of Service (https://www.icann.org/privacy/tos). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style delivery or disabling delivery altogether (e.g., for a vacation), and so on._______________________________________________
> Gnso-sc-budget mailing list
> Gnso-sc-budget at icann.org <mailto:Gnso-sc-budget at icann.org> 
> https://mm.icann.org/mailman/listinfo/gnso-sc-budget
> _______________________________________________
> By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (https://www.icann.org/privacy/policy) and the website Terms of Service (https://www.icann.org/privacy/tos). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style delivery or disabling delivery altogether (e.g., for a vacation), and so on.

_______________________________________________
Gnso-sc-budget mailing list
Gnso-sc-budget at icann.org <mailto:Gnso-sc-budget at icann.org> 
https://mm.icann.org/mailman/listinfo/gnso-sc-budget
_______________________________________________
By submitting your personal data, you consent to the processing of your personal data for purposes of subscribing to this mailing list accordance with the ICANN Privacy Policy (https://www.icann.org/privacy/policy) and the website Terms of Service (https://www.icann.org/privacy/tos). You can visit the Mailman link above to change your membership status or configuration, including unsubscribing, setting digest-style delivery or disabling delivery altogether (e.g., for a vacation), and so on.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mm.icann.org/pipermail/gnso-sc-budget/attachments/20191121/dd005d98/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: ~WRD000.jpg
Type: image/jpeg
Size: 823 bytes
Desc: not available
URL: <http://mm.icann.org/pipermail/gnso-sc-budget/attachments/20191121/dd005d98/WRD000-0001.jpg>