[ALAC] ALAC Statement on Reserve Fund

[Alan Greenberg]

At 28/11/2017 03:35 PM, Maureen Hilyard wrote:
>I agree that there needs to be more transparency with regards to the 
>proposed use of the reserve fund.

I don't understand. The report is quite explicit on that.
    * Replenishing Operating Fund levels depleted by unbudgeted and 
unmitigated short-term events or maintenance and replacement of 
assets, or payment of liabilities,
    * Undertaking major downsizing or significant restructuring of 
ICANN's operations.
    * Mitigating major security and stability threats and attacks.
    * Covering unplanned legal costs.
    * Undertaking new and major programs resulting from a new 
strategic plan or exceptional unforeseen external events.
    * Continue operations after a disaster."



>If we were going to add a particular purpose for additional funds to 
>help ICANN do their work,  I would recommend some of the high 
>priority or prerequisite recommendations of the CCTRT report - 
>especially those that suggest support for outreach and the new gtld 
>application process for the Global South.

Those sound like things we should budget and not unexpected contingencies....

Alan


>Maureen
>
>On Tue, Nov 28, 2017 at 9:26 AM, Alan Greenberg 
><<mailto:alan.greenberg at mcgill.ca>alan.greenberg at mcgill.ca> wrote:
>See 
><https://community.icann.org/pages/viewpage.action?pageId=71602968>https://community.icann.org/pages/viewpage.action?pageId=71602968.
>
>Sebastien identified a number of important issues related to the 
>reserve fund, following discussion with him, I have drafted the 
>following short statement (also posted to the Wiki). As the PC 
>closes on Thursday, and I believe it is essential that we make a 
>strong statement, I would like to discuss this on the ALAC call in a few hours.
>
>Alan
>
>----------------
>
>The ALAC strongly supports having the Reserve Fund at the level of 
>12 months expenses, and higher if there is a practical way of 
>achieving that without unduly impacting ICANN's ability to provide 
>necessary services, ensure the current and ongoing security, 
>stability and resiliency of the DNS, and adequately support its ACs and SOs.
>
>Since the Reserve Fund level is clearly tightly coupled to the level 
>of ICANN operational expenses, any discussion of the reserve should 
>have included a recent history and projection of ICANN operational 
>expenses along with the employee/contractor levels and the Reserve 
>Fund levels over the same period.
>
>At whatever level the Reserve Fund target is set, ICANN must publish 
>a plan on how and when this will be achieved. Given that the 
>proposed target level(s) are significantly above the current Reserve 
>Fund level, and it is unrealistic to believe that we will sustain or 
>exceed this year's return-to-reserve of $5m, ICANN should 
>expeditiously investigate alternative methods of building the 
>reserve to ensure ICANN's future stability. Sources such as the 
>Auction Proceeds, the surplus from the last round of new gTLD, or a 
>levy on any future new gTLD fees should be considered.
>
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