Minutes | Meeting of the Finance Committee of the Board (BFC) | 31 March 2026

BFC Attendees: Byron Holland, Alan Barrett, Patricio Poblete, Sajid Rahman (Chair), Amitabh Singhal, and Tripti Sinha

Other Board Member Attendees: Constance de Leusse and James Galvin

ICANN Staff Attendees: Xavier Calvez (SVP, Planning and Chief Financial Officer), Franco Carrasco (Board Operations Manager), Steve Fessler (Treasury Director), Becky Nash (VP, Planning), Shani Quidwai (VP, Finance), and Amy Stathos (Deputy General Counsel)

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

1. Agenda Review – The BFC reviewed the agenda for the meeting.
2. Approval of Minutes from the 24 February 2026 BFC Meeting – The BFC approved the minutes of the 24 February 2026 BFC meeting.
   • Action: Staff to publish the minutes on ICANN's webpage.
3. Review of Public Comments on the Draft ICANN and IANA FY27 Operating Plans and Budgets (OP&B) – The BFC received a briefing on the public comments received on the draft ICANN FY27 OP&B and draft IANA FY27 OP&B. Staff provided an overview of the methodology used to review, process, and respond to public comments. Staff reported that 181 individual comments were received on the draft ICANN plan, which was higher than the previous year, largely due to detailed feedback on the Strategic Initiatives included in the Operating Plan. The BFC discussed the key comments received by theme, including the Strategic Initiatives, funding projections, public meeting costs, travel support transparency, and personnel allocation associated with the Grant Program. Staff explained that each public comment is evaluated and that changes, where appropriate, are incorporated into the versions that are subject to Board approval. The BFC also discussed the public comments regarding the IANA OP&B, particularly those related to potential resourcing impacts associated with the New gTLD Program: 2026 Round. Staff noted that no significant financial or resource allocation changes are anticipated in the OP&B; however, clarifications and updates will be incorporated to improve transparency and understanding. The BFC reviewed the next steps in the FY27 planning process.
   • Action: Staff to publish the Public Comment Summary Report.
4. Proposed Changes to ICANN's Funds – The BFC received a presentation regarding community feedback received on the proposed updates to the Reserve Fund and the Supplemental Fund for Implementation of Community Recommendation (SFICR). Staff presented community feedback on the proposal to establish defined target and maximum levels for the Reserve Fund (minimum already in place). The minimum is 12 months of operating expenses, the proposed target is a range of 15 – 18 months, with the proposed maximum at a range of 18 – 24 months. Based on the feedback received, staff indicated that it intends to recommend midpoint levels, specifically a 16-month target and 21-month maximum for the Reserve Fund, which seems to balance financial security with any concerns regarding maintaining too much in the reserve. The BFC discussed the role of the target as a buffer above the minimum and the implications of establishing a maximum level. In response to questions, the staff pointed out that because IANA services are included within ICANN's overall operating budget it makes sense for ICANN's Reserve Fund to apply to the IANA services rather than Public Technical Identifiers maintaining its own reserve fund, which would be much smaller. Staff also presented a proposal to broaden the scope of the SFICR to function as a Project Fund, which would allow it to support large, multi-year projects that may be difficult to accommodate within the annual operating budget, in addition to projects implementing community recommendation that the SFICR already covers. Staff noted that any use of the Project Fund would continue to require Board approval and would be reflected in the operating plan and budget processes, including opportunities for community input through public comment proceedings. Staff explained, following discussion with the BFC, it will develop a formal proposal to amend ICANN's Investment Policy for BFC review and ultimately to the Board for consideration to address proposed changes to the Reserve Fund and the SFICR. The BFC agreed to discuss the matter further at a future meeting.
   • Action: The BFC to discuss at a future meeting.
5. Asset Manager and Custodian RFP Update – Staff provided an update on the RFP process for asset managers and custodians, which launched following Board approval of ICANN's revised Investment Policy. Staff reported that contracting discussions with the selected asset managers and custodians have begun. Staff expects to achieve cost reductions while maintaining the same level of service. Staff provided a preliminary and an illustrative overview of how ICANN's funds may be allocated among the selected asset managers and custodians. The allocations are based on a combination of current ICANN funds and the expected proceeds from the New gTLD Program: 2026 Round, with the overall objective of diversifying funds to mitigate risk. Staff noted that the initial allocation of funds may not appear evenly distributed due to structural considerations across different ICANN Funds. As additional funds are received, particularly the proceeds from the New gTLD Program: 2026 Round, allocations may be adjusted to achieve a more balanced distribution among asset managers. Staff also presented a preliminary structure for the custodians responsible for holding ICANN's assets. The allocation of assets is expected to be weighted toward the custodians that provide the higher levels of insurance coverage for assets under custody, covering risks such as operational errors, fraud, malfeasance, or misappropriation of funds. The BFC discussed the scope and purpose of insurance coverage provided by custodians and the roles of the custodians.