Hello Alan,

On the assumption that ICANN can legally use part of the proceeds to fund reserve, I'd be also can live with up to a 20% of whatever is the accessible amount of the AP.

However on a related note, I do personally think ICANN operating cost is quite on the high side in the first place and while effort is being made to get a 1 year reserve, i will be interested to know how much effort the Board is putting on 2 specific items:

1. Avoid continuous increase on the operating cost which could then make a year target meaningless.

2. Minimize operating cost as much as possible (of course without affecting the SO/AC part of things) so a 1 year reserve could end up sufficient for many more months when the need arises.

Regards

Sent from my mobile
Kindly excuse brevity and typos

On Oct 25, 2017 2:07 AM, "Alan Greenberg" <alan.greenberg@mcgill.ca> wrote:
This is a briefing note in preparation for the discussion in AbuDhabi current scheduled for 9:30 am, local time, on Sunday.

As is common for non-profit organizations, and particularly ones where their income or expenses might be subject to unexpected fluctuations, ICANN maintains a "Reserve Fund" to allow it to cover unexpected expenses or below expectations income. Currently the target for the fund is one year's regular expenses, but due to unexpected expenses (primarily associated with the IANA transition and accountability exercise), it is below that. There is an open Public Comment where you can find out more about the fund - https://community.icann.org/x/GJNEB.

It has been suggested that some portion of the proceeds of the new gTLD Auctions (currently about $235m, although there is some chance it could be as low as $105m) be used to help build back the reserve.

Excluding this possibility, the target use of the Auction Funds will be projects that are aligned with ICANN's mission and enhance the Internet (wording still under debate).

This brief discussion will be to solicit thoughts on whether this would be a good idea or not.

Alan

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