Minutes | Meeting of the Finance Committee of the Board (BFC) | 21 May 2024

BFC Attendees: Harald Alvestrand, Maarten Botterman, Edmon Chung, Danko Jevtović (Chair), Patricio Poblete, and León Sánchez

ICANN Org Attendees: Ted Bartles (Director, Event Design and Production), Michelle Bright (Board Content Coordination Director), Xavier Calvez SVP, Planning and Chief Financial Officer), Franco Carrasco (Board Operations Manager), Kirsten Crownhart (Senior Manager, Financial Planning & Analysis), Lars Hoffman (VP, New gTLD Program Management and Deputy Program Lead), Julie Hoffmeister (Next Round Implementation Manager), Marika Konings (VP, New gTLD Program Lead), Elizabeth Le (Associate General Counsel), Becky Nash (VP, Planning), Ergys Ramaj (VP, Public Responsibility Support), Shani Quidwai (Senior Director, Finance), Vivek Sengupta (Senior Director, Procurement), Theresa Swinehart (SVP, Global Domains and Strategy)

The following is a summary of discussions, actions taken and actions identified:

1. Contracting Approval - ICANN83 Meeting Venue – ICANN org presented the BFC with a proposed hotel and venue engagement for the ICANN83 Public Meeting. ICANN org performed a thorough analysis of the proposals and prepared a paper to identify those that met the meeting location selection criteria. Based upon the proposals received, ICANN org has identified a location and venue for ICANN83. In terms of due diligence, the BFC determined that the procurement process has been followed and that several alternative locations were evaluated against the ICANN meeting location selection criteria. The recommended venue adheres to the geographic rotation guidelines established by the Meeting Strategy Working Group. The BFC also determined cost estimates for the location are reasonable, consistent with historical meeting costs, and will be included in the FY25 Budget. The BFC noted that its evaluation pertains to the financials for the ICANN83 Public Meeting and does not extend to the security and human rights assessments for the proposed venue, which will be separately considered by the Board. Following discussion, the BFC approved a recommendation to the Board to authorize ICANN org to enter into the hotel and venue contracts for ICANN83.
   • Action: ICANN org to prepare relevant materials for Board consideration.
2. Next Round Contracting Approval Process – Edmon Chung and Harald Alvestrand recused themselves from the discussions for the remainder of the meeting, out of an abundance of caution to avoid any perception of a conflict of interest. ICANN org proposed changing the contracting approval process for the next round New gTLD Program to delegate authority from the Board to the BFC to expedite and simplify the process. This delegation would apply to contracts for the Next Round and avoid delays caused by having both the Board and the BFC involved to approve such contracts. The BFC also discussed the BFC's oversight role and familiarity with the program justifies the delegation, noting it would reduce contract approval times from 8-10 weeks to a faster process. The proposal includes a mechanism for the BFC to report back to the Board, ensuring continued accountability.
   • Action: BFC to present and discuss with the full Board the proposal to change the contracting approval process for the New gTLD Program: Next Round.
3. New gTLD Program: Next Round Update –The BFC received a status update, status of implementation and progress of the New gTLD Program: Next Round. ICANN org provided a summary of status update report. The BFC is responsible for the overall project management oversight for the Next Round. ICANN org updated the BFC on the significant progress of the Next Round. ICANN org has completed a bottom-up project planning exercise to align the overall program to each workstream, project, and supporting function to provide increased visibility, ownership, governance, dependencies, and risks related to implementation. ICANN org noted that the program delivery methodology developed for the Next Round ensures that the program is managed in a systematic way and that the necessary controls are in place. The BFC also received an update of the implementation costs to date and forecast of upcoming expenses. ICANN org also reported that the implementation will continue to progress, with specific milestones and timelines in place. Following discussion, the BFC approved a recommendation to the Board to approve funding received during the New gTLD Program 2012 Round Application Fees of up to US$23 million to cover further implementation costs for the New gTLD Program: Next Round through 31 March 2025. ICANN org will provide the Board with periodic updates on its progress, as well as continue to prepare information to coordinate with the BFC on periodic requests for implementation funding as work progresses.
   • Action(s): ICANN org to prepare relevant materials for Board consideration.