[CCWG-ACCT] TR: Transition and Accountability Cost - Next Step

Mathieu Weill mathieu.weill at afnic.fr
Tue Mar 1 17:46:05 UTC 2016

Dear Colleagues,

Please find below an update from the Board Finance Committee on a proposed
way forward regarding the management of the Transition Project costs. This
is a particularly timely contribution to our F2F meeting in Marrakech. We
have specifically invited the Finance Committee members to attend the part
of our meeting where we plan to discuss this topic.

Best and safe travels to all,


De : Cherine Chalaby [mailto:cherine.chalaby at icann.org]
Envoyé : mardi 1 mars 2016 18:34
À : Mathieu Weill; León Felipe Sánchez Ambía; Thomas Rickert; Jonathan
Robinson; fuhr at etno.eu
Cc : louie at louie.net; Alan Greenberg; byron.holland at cira.ca;
thomas.schneider at bakom.admin.ch; James M. Bladel; Robles Oscar; Fältström
Patrik; BFC; Steve Crocker; Fadi Chehade; Akram Atallah; David Olive
Objet : Transition and Accountability Cost - Next Step

Dear CCWG and CWG co-chairs,

Transition and Accountability Cost

Further to our call on 9 February 2016 to discuss the cost of the
Transition and Accountability work,  I have had follow-up calls with the
leaders of the SO/AC Chartering Organisations, and I am pleased to report
to you that we have reached an agreement on a way forward.

Historical Perspective

Historically, it has not been not part of the multi-stakeholder model to
have any one person or even a small group given the authority to make
decisions, including on costs.   Furthermore, the SOs/ACs have not been
able to obtain information about detailed costs for their work, meetings,
staff time, etc.    Nevertheless, given the large sums of money involved:
USD 25 millions in FY15 and FY16  and a further potential expenditure of
USD 6-9 million in FY17,  it would be good practice to produce reliable
estimates and to manage costs going forward.   This would represent a
change of culture for the ICANN community.   Therefore, it would be best
to adopt a two-step approach in order to get the gradual buy-in of the
community.   Step1 entails developing reliable estimates, and Step 2
entails deciding how best to manage cost.

Agreement on Step1 - Developing Reliable Estimates (4-6 weeks)

The leaders of the SO/AC Chartering Organizations agreed that it is
imperative to get a good handle and clarity on past and future
expenditures.  First we must undertake an in-depth analysis of past
expenditures in FY15 and FY16 (up to Marrakech) and understand where and
how money was spent.   From what we will learn, we should be in a position
to estimate future expenditures for the remainder of FY16 (from Marrakech
to end of Financial Year in June), and for all of FY17.   We must also
identify potential problem areas and develop ways to address them,
one-by-one.   With such plans, we can then present to the CCWG and CWG
co-chairs what is likely possible and what is likely to be problematic in
terms of cost control mechanisms.

We agreed that Step1 should be undertaken, on a pilot basis, by a small
dedicated Project Cost Support Team (PCST) and should not last more than
4-6 weeks.  The PCST will consist of four members:  a project manager, a
legal manager, a financial planner and a project administrator.   The
ICANN CEO will be responsible for selecting these individuals.  The
desired selection criteria are:  competent, respected and trusted by the
community, familiarity with ICANN transition and Accountability work and
available on a full-time basis for 4-6 weeks.   ICANN will pay for the
PCST.  The leaders of the SO/AC Chartering Organisations as well as the
CCWG and CWG co-chairs will be informed of the cost of the PCST.

The PCST is neither a decision making nor a management team.   The PCST is
a support function to the CCWG and CWG co-chairs.   It must therefore
coordinate closely with the co-chairs while undertaking Step1.

Given that the Draft FY17 Budget will be posted on 5 March 2016, a place
holder of USD 6-9 millions has been included in the draft budget for
Transition and Accountability work in FY17.   This figure will be adjusted
once the PCST completes Step 1.  It is therefore desirable to start Step1
as soon as possible.

Next Call

It was agreed that we should set up a call once Step1 is completed (around
mid to end April) to review the findings of the PCST and to agree
collectively on how best to manage cost going forward (Step 2).

I sincerely hope that you are supportive of the pilot work we agreed to
undertake.   Please do not hesitate to ask me any questions.

Best regards,


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