[OFB-WG] SFICR $$ for GTLD prog. - clarification

[Marita Moll]

As promised in today's OFB meeting, I went back to the Dec. 13 webinar 
to check out the response to my question re: use of SFICR funds for new 
GTLD program. I hope this summary of the discussion clarifies things. I 
don't think we need to ask for further clarification as Xavier's 
explanation was very clear. The decision to release $13M from the SFICR 
for this purpose was made by the board on Oct. 26, 2023 (as shown on the 
webinar slide deck at 44:21)

Draft ICANN FY25 Operating Plan and Budget Community Webinar Dec. 13 -- 
17:00 UTC session

(52:33) -- 58:00)

Question: Marita: I see that some of the funding for the new GTLD rounds 
is coming from the SFICR fund. Was that always the intention? Since the 
new GTLD round is meant to be cost neutral, would that money be returned 
to the SFICR?

Response: Xavier

The funds in the SFICR come from the surplus over the past few years and 
was designed to implement community recommendations. As the new GTLD 
program is a result of a community policy recommendation, it is 
appropriate to use some of the SFICR fund for that program. So it is 
consistent with the purpose of the SFICR. Cost of the new GTLD program 
is meant to be covered by the fees for the program and not more -- 
meaning that the organization should also not be excessively benefiting 
from the fees. So the SFICR funding relates to funding necessary for 
expenses incurred for development and preparation expenses during the 
period before the application window opens during which the fees will be 
collected. This is a timing issue and we are advancing the funding for 
those expenses and the fees will eventually reimburse the organization 
for those development and preparation costs. It is up to the board to 
decide where to allocate those funds in the end. There is no entitlement 
nor obligations to return that money to the SFICR. At the end of the 
day, it will depend on the needs of the community and organizational 
work at that time.

Marita


-------------- next part --------------
An HTML attachment was scrubbed...
URL: <https://mm.icann.org/pipermail/ofb-wg/attachments/20240111/926e82d7/attachment-0001.html>