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At 28/11/2017 03:41 PM, Ricardo Holmquist wrote:<br>
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Hi,<br>
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.</blockquote><br>
Interest on regular funds is a standard income item and is already in
ICANN budgets.<br><br>
Interest on segregated funds currently goes back to those funds.<br><br>
<br>
<blockquote type=cite class=cite cite="">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</blockquote><br>
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.<br><br>
Alan<br><br>
<br>
<blockquote type=cite class=cite cite="">Thanks<br><br>
Ricardo<br><br>
2017-11-28 15:23 GMT-05:00 Judith Hellerstein
<<a href="mailto:judith@jhellerstein.com">judith@jhellerstein.com</a>
>:<br>
<dl>
<dd>Hi Alan and Sebastien,<br><br>
<dd>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.<br><br>
<dd>Best,<br><br>
<dd>Judith<br><br>
<dd>
_________________________________________________________________________<br>
<dd>Judith Hellerstein, Founder & CEO<br>
<dd>Hellerstein & Associates<br>
<dd>
<a href="https://maps.google.com/?q=3001+Veazey+Terrace+NW,+Washington+DC+20008&entry=gmail&source=g">
3001 Veazey Terrace NW, Washington DC 20008</a><br>
<dd>Phone: (202) 362-5139 Skype ID: judithhellerstein<br>
<dd>Mobile/Whats app:
<a href="tel:%2B1202-333-6517">+1202-333-6517</a><br>
<dd>E-mail:
<a href="mailto:Judith@jhellerstein.com">Judith@jhellerstein.com</a>
Website:
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<dd>Linked In:
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www.linkedin.com/in/jhellerstein/</a><br>
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<dd>On 11/28/2017 2:26 PM, Alan Greenberg wrote:<br>
<dl>
<dd>See
<a href="https://community.icann.org/pages/viewpage.action?pageId=71602968">
https://community.icann.org/pages/viewpage.action?pageId=71602968</a>.<br>
<br>
<dd>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.<br><br>
<dd>Alan<br><br>
<dd>----------------<br><br>
<dd>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.<br><br>
<dd>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.<br><br>
<dd>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.<br><br>
<dd>_______________________________________________<br>
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ALAC@atlarge-lists.icann.org</a><br>
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