[ALAC] ALAC Statement on Reserve Fund

Tue Nov 28 20:57:41 UTC 2017

At 28/11/2017 03:41 PM, Ricardo Holmquist wrote:
>Content-Type: multipart/alternative; boundary="001a1139e45af8856a055f110a29"
>X-Microsoft-Exchange-Diagnostics:
> 
>1;YQXPR0101MB1589;27:DmTDXd+tKF+hsFQy4y1hx2iwKk33s8fKijLdC8LJFxt0/Zzfn4dbhUCRAQ0yQYRvOMyqPoJQKPPD6/7vXPWySVlKLrsIvq0YiYIVjz6Z7fwEXz36Ie12KRi/2umAA+HO
>
>Hi,
>First, I do agree with Alan and Sebatien it should be at least one 
>year of opex. But also I understand the reserve fund will be used 
>for extraordinary issues, not foreseen right now, and the actual 
>opex is coming from regular incomes, and it seems it will be so at 
>least for FY19 (and FY20). So the reserve can be replenished over an 
>ammount of time. Sources for this replenishment, other than gTLD 
>auctions, can be the actual interest paid to the different funds 
>ICANN have, and a inclusion of certain ammounts in the budget.

Interest on regular funds is a standard income item and is already in 
ICANN budgets.

Interest on segregated funds currently goes back to those funds.

>Lastly, a point not mentioned in the draft is the need for ICANN to 
>be cautious with its expenses. The original fund covered a year of 
>opex, and it was expected to decrease due to the IANA transtion, but 
>in fact the ammount of depletion of the reserve is larger than the 
>ammount shown for IANA transtion, so it seems it is covering not 
>only extraordinary events (The IANA transition), but also regular 
>costs. Altough the incomes seems to be flattening, the budget is 
>increasing, that is particularly true with PTI and IANA budgets, 
>where the actual draft increases the FY19 in almost 10% over FY18

My understanding is that the amount that has been taken from the 
reserve ($36m) is only for the IANA transition and Accountability. At 
least, that is what the report seems to say.

Alan

>Thanks
>
>Ricardo
>
>2017-11-28 15:23 GMT-05:00 Judith Hellerstein 
><<mailto:judith at jhellerstein.com>judith at jhellerstein.com>:
>Hi Alan and Sebastien,
>
>Thank you for posting this comment and I look forward to the 
>discussion.  I too agree that the ALAC needs to strongly support 
>having an adequate reserve fund, however, I think we should identify 
>more than 2 sources for funds as the Auction proceeds is a one time 
>possibility and the problems with the reserves need something that 
>is a more concrete and longer term option.  I would like to see more 
>suggestions for sources of funding.  I would also prefer that we 
>switch around the order of the sources of possible funds to put 
>Auction Proceeds as the last item and a levy on any future new GTLDs 
>as the first item on the list.  Also I was a bit confused by your 
>statement in that Auction Proceeds is the surplus from the last 
>round of gtlds but in this sentence it looks to be a different item.
>
>Best,
>
>Judith
>
>_________________________________________________________________________
>Judith Hellerstein, Founder & CEO
>Hellerstein & Associates
><https://maps.google.com/?q=3001+Veazey+Terrace+NW,+Washington+DC+20008&entry=gmail&source=g>3001 
>Veazey Terrace NW, Washington DC 20008
>Phone: (202) 362-5139  Skype ID: judithhellerstein
>Mobile/Whats app: <tel:%2B1202-333-6517>+1202-333-6517
>E-mail: 
><mailto:Judith at jhellerstein.com>Judith at jhellerstein.com   Website: 
><http://www.jhellerstein.com>www.jhellerstein.com
>Linked In: 
><http://www.linkedin.com/in/jhellerstein/>www.linkedin.com/in/jhellerstein/
>Opening Telecom & Technology Opportunities Worldwide
>
>On 11/28/2017 2:26 PM, Alan Greenberg 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.
>
>_______________________________________________
>ALAC mailing list
><mailto:ALAC at atlarge-lists.icann.org>ALAC at atlarge-lists.icann.org
>https://atlarge-lists.icann.org/mailman/listinfo/alac
>
>At-Large Online: <http://www.atlarge.icann.org>http://www.atlarge.icann.org
>ALAC Working Wiki: 
><https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)>https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)
>
>
>_______________________________________________
>ALAC mailing list
><mailto:ALAC at atlarge-lists.icann.org>ALAC at atlarge-lists.icann.org
>https://atlarge-lists.icann.org/mailman/listinfo/alac
>
>At-Large Online: <http://www.atlarge.icann.org>http://www.atlarge.icann.org
>ALAC Working Wiki: 
><https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)>https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)
>
>
>Content-Type: text/plain; charset="us-ascii"
>Content-Transfer-Encoding: 7bit
>Content-Disposition: inline
>X-Microsoft-Exchange-Diagnostics:
> 
>1;YQXPR0101MB1589;27:DmTDXd+tKF+hsFQy4y1hx2iwKk33s8fKijLdC8LJFxt0/Zzfn4dbhUCRAQ0yQYRvOMyqPoJQKPPD6/7vXPWySVlKLrsIvq0YiYIVjz6Z7fwEXz36Ie12KRi/2umAA+HO
>
>_______________________________________________
>ALAC mailing list
>ALAC at atlarge-lists.icann.org
>https://atlarge-lists.icann.org/mailman/listinfo/alac
>
>At-Large Online: http://www.atlarge.icann.org
>ALAC Working Wiki: 
>https://community.icann.org/display/atlarge/At-Large+Advisory+Committee+(ALAC)
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://atlarge-lists.icann.org/pipermail/alac/attachments/20171128/bab17043/attachment.html>