Dear Colleagues, Please find below an update from the Board Finance Committee on a proposed way forward regarding the management of the Transition Project costs. This is a particularly timely contribution to our F2F meeting in Marrakech. We have specifically invited the Finance Committee members to attend the part of our meeting where we plan to discuss this topic. Best and safe travels to all, Mathieu De : Cherine Chalaby [mailto:cherine.chalaby@icann.org] Envoyé : mardi 1 mars 2016 18:34 À : Mathieu Weill; León Felipe Sánchez Ambía; Thomas Rickert; Jonathan Robinson; fuhr@etno.eu Cc : louie@louie.net; Alan Greenberg; byron.holland@cira.ca; thomas.schneider@bakom.admin.ch; James M. Bladel; Robles Oscar; Fältström Patrik; BFC; Steve Crocker; Fadi Chehade; Akram Atallah; David Olive Objet : Transition and Accountability Cost - Next Step Dear CCWG and CWG co-chairs, Transition and Accountability Cost Further to our call on 9 February 2016 to discuss the cost of the Transition and Accountability work, I have had follow-up calls with the leaders of the SO/AC Chartering Organisations, and I am pleased to report to you that we have reached an agreement on a way forward. Historical Perspective Historically, it has not been not part of the multi-stakeholder model to have any one person or even a small group given the authority to make decisions, including on costs. Furthermore, the SOs/ACs have not been able to obtain information about detailed costs for their work, meetings, staff time, etc. Nevertheless, given the large sums of money involved: USD 25 millions in FY15 and FY16 and a further potential expenditure of USD 6-9 million in FY17, it would be good practice to produce reliable estimates and to manage costs going forward. This would represent a change of culture for the ICANN community. Therefore, it would be best to adopt a two-step approach in order to get the gradual buy-in of the community. Step1 entails developing reliable estimates, and Step 2 entails deciding how best to manage cost. Agreement on Step1 - Developing Reliable Estimates (4-6 weeks) The leaders of the SO/AC Chartering Organizations agreed that it is imperative to get a good handle and clarity on past and future expenditures. First we must undertake an in-depth analysis of past expenditures in FY15 and FY16 (up to Marrakech) and understand where and how money was spent. From what we will learn, we should be in a position to estimate future expenditures for the remainder of FY16 (from Marrakech to end of Financial Year in June), and for all of FY17. We must also identify potential problem areas and develop ways to address them, one-by-one. With such plans, we can then present to the CCWG and CWG co-chairs what is likely possible and what is likely to be problematic in terms of cost control mechanisms. We agreed that Step1 should be undertaken, on a pilot basis, by a small dedicated Project Cost Support Team (PCST) and should not last more than 4-6 weeks. The PCST will consist of four members: a project manager, a legal manager, a financial planner and a project administrator. The ICANN CEO will be responsible for selecting these individuals. The desired selection criteria are: competent, respected and trusted by the community, familiarity with ICANN transition and Accountability work and available on a full-time basis for 4-6 weeks. ICANN will pay for the PCST. The leaders of the SO/AC Chartering Organisations as well as the CCWG and CWG co-chairs will be informed of the cost of the PCST. The PCST is neither a decision making nor a management team. The PCST is a support function to the CCWG and CWG co-chairs. It must therefore coordinate closely with the co-chairs while undertaking Step1. Given that the Draft FY17 Budget will be posted on 5 March 2016, a place holder of USD 6-9 millions has been included in the draft budget for Transition and Accountability work in FY17. This figure will be adjusted once the PCST completes Step 1. It is therefore desirable to start Step1 as soon as possible. Next Call It was agreed that we should set up a call once Step1 is completed (around mid to end April) to review the findings of the PCST and to agree collectively on how best to manage cost going forward (Step 2). I sincerely hope that you are supportive of the pilot work we agreed to undertake. Please do not hesitate to ask me any questions. Best regards, Cherine