ccTLD Constituency of the DNSO

World Wide Alliance of Top Level Domain-names
Formation of ICANN Budget Group for Fiscal Year 2001-2002

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Formation of ICANN Budget Group for Fiscal Year 2001-2002

From: Mike Roberts, ICANN President and CEO

To: Kanchana Kanchanasut, ccTLD Constituency Secretariat Executive Director



January 13, 2001

Subj: Formation of Budget Group for Fiscal Year 2001-2002

A. Summary

The purpose of this memorandum is to begin the process of forming the consultative budget group to assist the ICANN CEO and Board in the preparation of the budget for fiscal year 2001-2002, which begins July 1, 2001. Section B provides useful background on the ICANN budget process as it currently stands. Section C describes the recently created Finance Committee. Section D presents the tentative calendar of budget related events for the next six months. Section E discusses the representation of registries and registrars on the budget group for FY01-02 and describes the nomination process.

Please note that the registry/registrar constituent groups to whom this note is being circulated are requested to forward their nominations to Mike Roberts not later than Wednesday, January 24, so that the budget process described in this memorandum may begin on schedule. The first distribution of background materials is planned for January 25, and the first budget group teleconference is planned for Monday, January 29.

B. Background

In the fall of 1999, the ICANN Board adopted the recommendations of its Task Force on Funding (TFF), which included a number of provisions relating to the the annual budget cycle. Included among them was the language quoted below. These recommendations are the basis for development of the detailed annual budget process.

"B. Improvements to ICANN Budget Process

The TFF believes that ICANN's budget process needs to be improved in future
iterations to give the entities providing the funds -- the domain name and
address registries and registrars -- a formal role in the budgeting process.
The goal of the Task Force's recommendations in this area is greater
accountability, predictability, participation, and transparency in the
budgeting process.

(2) The TFF recommends that the budget proposed by the President at the outset
of the budget process should be directly transmitted via email to each name
address registry and registrar for review and comment, with adequate time for
study and response.

(3) The TFF recommends that the budget process include a meeting among members
of the ICANN Board and representatives of the IP address registries and domain
name registries and registrars to review the proposed budget in detail and to
seek consensus on areas of controversy.

(4) The TFF recommends that ICANN provide the IP address registries and domain
name registries and registrars with a quarterly update on ICANN's financial
situation, including figures showing the degree to which ICANN's revenues are
exceeding or falling short of the approved budget.

(5) In addition to the entities directly contributing the funds to ICANN's
cost-recovery program, the rest of the ICANN community must have a fair
opportunity to review the proposed budget and participate in the
consensus-development process. The Task Force recommends that ICANN require
that the proposed annual budget be placed on the agenda for at least one
Forum prior to adoption."

Additional detail on the TFF report is available at: http://www.icann. org/tff/final-report-draft-30oct99.htm

All of ICANN's major budget documents, budget reports, financial statements, and related materials are posted on the website at

C. ICANN Finance Committee

The ICANN Board recently appointed a Finance Committee. Its charter provides that the committee "is responsible for consulting with the President on the annual budget process of the corporation; for reviewing and making recommendations on the annual budget submitted by the President; and for developing and recommending long range financial objectives for the corporation."

The membership of the committee for 2000-2001 is Linda Wilson (Chair), Jonathan Cohen, Ivan Moura Campos, and Helmut Schink. Chairman Wilson and the committee members are currently working with the ICANN finance staff to develop a budget agenda. Further details will be available as the budget process progresses. Additional information about the Finance Committee is posted at finance/.

Diane Schroeder, ICANN's Business Manager, will provide staff support to the Finance Committee and to the Budget Group.

D. Budget Calendar for FY2001-2002

The ICANN Bylaws require that the President submit a proposed budget to the Board of Directors at least forty-five days in advance of the beginning of the fiscal year, or approximately May 15. For FY2001-2002, the Board will act on the proposed budget at its meeting of June 4, 2001 in Stockholm, following both electronic and in person comments on the proposed budget. Working backward from these end dates, it is planned that the work of the consultative budget group will take place from approximately January 15, 2001 through May 15, 2001.

Both the Finance Committee and the Budget Group will review and make recommendations to the ICANN Board on the proposed revisions to the ICANN revenue structure as part of the FY01-02 budget process. The staff paper on revenue structure is posted at htt p://

As was the practice last year, a preliminary budget document will be developed, with assistance from the Budget Group, and posted for public comment at the March ICANN meetings, which will be held in Melbourne, Australia, on March 10-13.

A tentative calendar of budget related meetings and teleconferences for the new fiscal year is as follows.

January 24 - Deadline for Nominations for FY2001-2002 Budget Group

January 25 - FY2000-2001 Midyear Budget Report Available

January 29 - Budget Group Teleconference #1 - agenda to be developed and distributed in advance

February 9 - Draft of Preliminary Budget Document Distributed to Budget Group for comment

February 19 - Preliminary FY01-02 Budget Document posted for Public Comment

March 9 - Joint Meeting of Finance Committee and Budget Group in Melbourne

March 12 - Presentation on FY01-02 Preliminary Budget at Public Forum in Melbourne

March 29 (About) - Budget Group Teleconference #2 - agenda to be developed

April 27 (About) - Draft of Proposed Budget distributed to Budget Group for comment

May 7 (About) - Budget Group Teleconference #3 - final comments on proposed budget before posting

May 14 - Proposed Budget for FY01-02 posted for Public Comment

June 1 - Joint Meeting of Finance Committee and Budget Group in Stockholm

June 3 - Presentation on FY01-02 Proposed Budget at Public Forum in Stockholm

June 4 - ICANN Board adopts FY01-02 Budget

July 1 - FY01-02 Budget Year Commences

E. Nomination of Budget Group Members

In the budget process for FY00-01, the current fiscal year, the membership of the budget group followed that of the TFF, with seats distributed as follows:

Address Registries - Participation by all three regional address registries

Verisign .com/net/org Registry - one representative

ICANN .com/net/org accredited registrars - three representatives [Some of these registrars may be accredited to additional registries in the near future.]

ccTLD registries/registrars - three representatives

For FY01-02, there will be added to this list two representatives from among the seven new TLD registries - one from a worldwide commercial registry and one from a noncommercial sponsored registry.

Individuals nominated to the budget group must hold a senior management position in a registry or registrar organization and additionally must have sufficient budget and financial experience in their background to participate effectively in the work of the group. They also must be given adequate time by their employer to study the working materials distributed to and possibly developed by the budget group as well as to participate in the budget group teleconferences and at least one of the face to face meetings. The out of pocket expenses of budget group members are borne by the participating organizations. It is also expected that, to the extent required, the representatives from a given group of registries or registrars will consult among their peer organizations to solicit additional comments and perspectives on the development of the budget so that the budget group as whole, as well as the Finance Committee and the Board, have the benefit of considered advice from all those who directly provide financial support to ICANN.

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Page updated : 2001-01-28 16:43:50