Minutes | Meeting of the Finance Committee of the Board (BFC) | 22 April 2024

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

BFC Member Apology: Edmon Chung

Other Board Member Attendees: Sally Costerton and Katrina Sataki

ICANN Org Attendees: Andre Abed (VP, Relationship, Delivery Management and Interim Head of Engineering and IT), Xavier Calvez (SVP, Planning & Chief Financial Officer), Franco Carrasco (Board Operations Manager), Anna Guseva (Sr. Director, Program Management – E&IT), John Jeffrey (General Counsel and Secretary), Elizabeth Le (Associate General Counsel), Becky Nash (VP, Planning), and Shani Quidwai (Senior Director, Finance).

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

1. Contracting: IT Outsource Vendor – The BFC considered a proposal from ICANN org to extend the existing contract for another 12 months with a current IT outsourcing firm which has provided ICANN services in software engineering, quality assurance and content management over the last several years to augment ICANN's IT capacity. It was explained that the matter is with the BFC and then to the Board as the cost of the proposed extension is over US$500,000. ICANN org provided an overview of the vendor's services in the past and that are expected going forward. ICANN org reported that the relationship with the current outsourcing firm has been beneficial to ICANN org and overall has been a success in augmenting ICANN's IT capacity. These services are part of ICANN's IT ongoing operations and the need to augment ICANN's IT capacity for these services continues. The current outsourcing firm has also maintained good service and competitive rates through every past renewal with limited rate increases withstanding global inflation. ICANN org also briefed the BFC on the due diligence that ICANN org conducted in accordance with the procurement process. The BFC determined that the procurement process has been respected and that costs are reasonable and affordable. Following discussion, the BFC approved a recommendation to the Board to authorize ICANN org to enter into a further extended contract with the current IT outsourcing firm.
   • Action: ICANN org to prepare relevant materials for Board consideration.
2. ICANN FY25-29 Operating and Financial Plan (O&FP), ICANN FY25 Operating Plan and Budget (OP&B), and IANA FY25 OP&B – The BFC received a briefing on the proposed adoption for ICANN FY25-29 O&FP and IANA FY25 OP&B (collectively Plans). ICANN org provided a brief overview of the process of review and public comment that the Plans underwent, highlighting that there were no material changes to the Plans as a result of the public comments received. The non-material changes made resulting from public comments were in the narrative and presentation aspects of the documents only. Following the publication of the FY25 draft Plans for public comment, ICANN org reviewed the latest planning and financial assumptions, which is a key step in the process. As changes reflected in the Plans were made in this regard after the public comment proceeding was concluded, ICANN org will conduct two webinars to highlight the changes that have been made to the draft documents since they were published in December 2023. ICANN org reported the trajectory of funding, which is projected to decline slightly in the next year and the revisions made to the Plans based on updated financial projections, including an increase in cost-saving initiatives from US$5 million to US$8 million. ICANN org also provided an overview of the next steps, including the publication of the Plans, community engagement via webinars and the Empowered Community period. Following discussion, the BFC agreed to recommend to the Board to adopt the Plans.
   • Action(s):
     • ICANN org to prepare relevant materials for Board consideration.
     • ICANN org to conduct community webinars.
     • ICANN org to publish the draft Plans.