[CWG-Stewardship] Notes, Recordings, Transcript DT-O Meeting on 17 March 2017

[Brenda Brewer]

Dear all, 

 

The notes, recordings and transcripts for the DT-O Meeting on 17 March 2016 will be available here:
https://community.icann.org/x/cblYAw

 

A copy of the notes may be found below.

 

Kind regards,

Brenda

 




Action Items


*        Action item #1: Staff to add clarifying points to main objectives of financial stability
and operational excellence and circulate 
these to the DT for review prior to next week's meeting. 

*        Action item #2: All to share ideas on how to have multi-year guarantee of funding ahead of
next week's meeting. 

*        Action item #3: Staff to pull from the CWG-Stewardship and CCWG-Accountability proposals
those items that specifically 
relate to IANA Services Funding


Notes


4. Cooption of DT-O into a bigger group that is also dealing with CCWG matters?

    a. Who would the bigger group include that are not in DT-O?  (Jordan Carter)

    b. Discussion

    c. Next steps

*        What are the possible implications? What issues does the CCWG have to deal with in relation
with Budget? Does CCWG already 
have a group in place? First meeting of informal CCWG group was held in Marrakesh - those same
people would likely be 
interested to join this effort (see minutes of that meeting). Primary issue for CCWG is defining a
framework for a caretaker budget 
for the overall ICANN budget. Outstanding questions from that meeting was Xavier's suggestion to
incorprate in that budget a 
caretaker budget for PTI or does that needs to be separate. In FY17 draft budget open question how
much is spent and how 
these expenses will be funded - not decided yet whether this would come from the reserve fund.
Assuming in the budget that CWG-Stewardship implementation moves forward and as such PTI operation
costs are included in the FY17 draft budget. What is not 
included at the moment is any costs related to the implementation / further work on any other
transition related work such as WS2 
or implementation of other aspects.

*        Not clear yet how PTI will be implemented which is being worked on by a CWG-Stewardship
Task Force. Need to ensure co-ordination between all these different streams of activity.  

*        Make sure that focus is not lost by widening the scope of this effort. 

*        CCWG-Accountability mechanisms also cover PTI. 

*        Need to confirm who is covering IANA care-taker budget if two groups decide to work
separately

*        Proposed approach: CCWG members are welcome to participate in DT-O meetings, but will
recommend to the CCWG-Accountability the formation of a separate group to focus on the CCWG Budget
related elements. DT-O to cover IANA 
Services / PTI care-taker budget, which would include all IANA services (with PTI being a sub-set).


*        Consider taking similar approaches with regards to care-taker budget through regular
communication / co-ordination.

*        Question is whether IANA services care-taker budget would be part of the overall 
care-taker budget or not. Both groups to check in with each other in a couple of weeks to discuss
further. 

*        From ICANN Finance perspective it would make more sense to tackle both in one approach and
then solicit input from the 
different groups. Consider setting up email distribution list that would combine both groups.

1. Define the financial objective(s) for PTI

    a. Please note Olivier's message on this topic:

          i. Primary objective: "financial sustainability for IANA"

          ii. Two main components:

            a) Financial stability ("The IANA budget must be set well in advance and must therefore
be predictable. Any sudden change in 
circumstances, whether internal or external to IANA, which may trigger an increase in the 
IANA budget, must be covered to a certain extent. (which we might need to define)."

            b) Financial independence from ICANN

    b. Discussion

    c. Agree on next steps for finalizing the financial objectives

*        What do we want to achieve? Stability in light of lack of financial independence (immunity
of the IANA operations budget from 
ICANN's), operational excellence (ensure there are sufficient funds to guarantee operational
excellence), operational financial 
independence. Financial stability and operational excellence would cover all the points made.
Consider adding some clarifying 
notes to explain these in further detail. 

Action item #1: Staff to add clarifying points to main objectives of financial stability and
operational excellence and circulate these 
to the DT for review prior to next week's meeting. 

2. Develop a recommendation for ensuring multi-year continuity of IANA Services funding

    a. Brainstorm ideas

    b. Discuss pros & cons of ideas

    c. Agree on a process for determining a DT-O recommendations

*        Have to make sure that current operational budget is in PTI's control. Money has to be
transferred to PTI in the beginning 
of the year. PTI should be isolated from any financial issues that ICANN may encounter. Need to
segregate money from 
ICANN budget so it is available for PTI to spend. 

*        Possible options to ensure multi-year guarantee to be further considered: hold year's
budget in escrow, would an insurance 
be an option or bank cash deposit

*        Minimize complexity but also factor in what could happen in case of bankruptcy. See also
Sidley memo: A parent entity bankruptcy 
filing does not result in a subsidiary entity also becoming a debtor in a bankruptcy proceeding,
regardless of whether the subsidiary 
is a non-profit corporation or LLC. Thus, a wholly owned subsidiary is not also a "debtor" in
bankruptcy unless its governing body specifically 
determines that it should file for bankruptcy or there is some basis to substantively consolidate
the subsidiary with the parent (which is 
unlikely in this circumstance.

*        Clarification by what is meant with budget - a budget is not a bucket in which there is
money, a budget is the quantification of a 
perspective action plan in monetary terms (resources required to deliver onthat action plan). Avoid
confusing budget and bank account. 

*        If there is anything that needs to go into Bylaws would need to be identified as soon as
possible as that process has started. 

*        Which issue is early approval of PTI budget solving? Financial stability issue - community
felt there needs to be an approved budget 
sooner than the ICANN budget factoring in the critical nature of the IANA Functions. What seems to
be the point is that the funding of 
IANA/PTI is secured, this is quite a different point than having the budget approved early/late.
Other reason was to ensure that any 
concerns with IANA Budget could be dealt with at an early stage. 

*        Xavier / Finance Team will be responsible for drafting the process for the development and
approval of the PTI budget in consultation with DT-O (as such, no need to reach out to Elise which
was identified earlier as an action item).

Action item #2: All to share ideas on how to have multi-year guarantee of funding ahead of next
week's meeting. 

Action item #3: Staff to pull from the CWG-Stewardship and CCWG-Accountability proposals those items
that specifically relate to IANA Services Funding

 

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