[CWG-Stewardship] [community-finance] FY17 Budget update: Section 4 on IANA Stewardship

[Gomes, Chuck]

Without any intention to detract from Michele’s main questions, I inserted a few comments below that I think are important to keep in mind.

Chuck

From: community-finance-bounces at icann.org [mailto:community-finance-bounces at icann.org] On Behalf Of Michele Neylon - Blacknight
Sent: Thursday, June 23, 2016 9:26 AM
To: Xavier J. Calvez; community-finance at icann.org; cwg-stewardship at icann.org
Cc: Executive Team; BFC
Subject: Re: [community-finance] FY17 Budget update: Section 4 on IANA Stewardship

Xavier

Just reading over this and a few comments / concerns.

It sounds like this expenditure is being viewed as a fait accompli and it’s really case of moving things around to work out how it will be funded, which seems a bit backwards. How can you agree on the expenditure for a project without knowing how you will fund it?
[Chuck Gomes] Don’t we know how it will be funded, i.e., via reserves?  What we don’t know is whether the reserves will be restored and how, as Michele notes below.

The reserves are already depleted and there doesn’t appear to be any firm plan on how those reserves will be restored, unless I missed something. Yet the expenditure keeps growing.
[Chuck Gomes] As I understand the word ‘depleted’, I don’t think that it is accurate to say that the reserves are depleted.  In my mind, that would mean there are no reserves left.  As I am sure Michele knows, that is not the case.  But it is true that they have been significantly reduced.  There also appears to be sufficient reserves to cover future unbudgeted expenses and still have a sizable balance in the reserves, albeit a lot less than the currently targeted level of one year of operating expenses.

The legal fees are again ridiculously high. How does ICANN select vendors for these kind of services? Is there a tender process? Is there an RFP?
[Chuck Gomes] Note that the CWG Stewardship via its client committee and the CCWG Accountability via its mechanisms selected the two external legal firms.  That doesn’t mean that any existing tender processes shouldn’t have applied but I am pretty sure that time constraints were an issue.

Regards

Michele


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From: <community-finance-bounces at icann.org<mailto:community-finance-bounces at icann.org>> on behalf of "xavier.calvez at icann.org<mailto:xavier.calvez at icann.org>" <xavier.calvez at icann.org<mailto:xavier.calvez at icann.org>>
Date: Monday 20 June 2016 at 03:07
To: "community-finance at icann.org<mailto:community-finance at icann.org>" <community-finance at icann.org<mailto:community-finance at icann.org>>, "cwg-stewardship at icann.org<mailto:cwg-stewardship at icann.org>" <cwg-stewardship at icann.org<mailto:cwg-stewardship at icann.org>>
Cc: Executive Team <executive-team at icann.org<mailto:executive-team at icann.org>>, BFC <fin-comm at icann.org<mailto:fin-comm at icann.org>>
Subject: [community-finance] FY17 Budget update: Section 4 on IANA Stewardship

Dear all,
Please find attached an extract from the final FY17 Budget document relative to the IANA Stewardship transition (Section 4), currently under review, prior to Board consideration for approval in Helsinki.
You may remember that the Draft budget document submitted for public comment did not include information on the FY17 expenses for this project. The Project Cost Support Team created in Marrakech has been working with the BFC, the CCWG, CWG, ICG co-chairs and involved staff to estimate the draft project’s expenses for FY17. These draft estimates have been included in the attached section (total $8.8m, page 3/10).
Though offered late in the process, as these estimates are under review, your comments and questions on this section are welcome.

Thank you.

Best,
Xavier

Xavier Calvez
ICANN
CFO
12025 Waterfront Drive, Suite 300
Los Angeles, CA 90094
Office     : +1 (310) 301 5838
Mobile   : +1 (805) 312 0052
Fax                          : +1 (310) 957-2348

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