Fair enough, Vanda you are right. I was focusing on auction proceeds documents and concentrating on the original intent of the funds and probably missed the point. But I think I have to agree with Andrei, the reserve will never be big enough for what ICANN may need for all its contingencies... and what will that leave for our projects? Maureen On Wed, Nov 29, 2017 at 10:01 AM, Vanda Scartezini <vanda@etges.com.br> wrote:

As a former Audit Committee chair, when board member, I believe the internal process related to reserve fund in ICANN is clear and any action related to its use is also clearly approved. I really do not see a need of more details – the prioritization of FUND use only can be define facing the unbudgeted situation.. pre define a particular use, in my opinion is taking out the condition of Reserve.

My 2 cents

*From: *ALAC <alac-bounces@atlarge-lists.icann.org> on behalf of Alan Greenberg <alan.greenberg@mcgill.ca> *Date: *Tuesday, November 28, 2017 at 18:57 *To: *Maureen Hilyard <maureen.hilyard@gmail.com> *Cc: *'ALAC List' <alac@atlarge-lists.icann.org> *Subject: *Re: [ALAC] ALAC Statement on Reserve Fund

At 28/11/2017 03:35 PM, Maureen Hilyard wrote:

I agree that there needs to be more transparency with regards to the proposed use of the reserve fund.

I don't understand. The report is quite explicit on that.

1. Replenishing Operating Fund levels depleted by unbudgeted and unmitigated short-term events or maintenance and replacement of assets, or payment of liabilities,

2. Undertaking major downsizing or significant restructuring of ICANN‚s operations.

3. Mitigating major security and stability threats and attacks.

4. Covering unplanned legal costs.

5. Undertaking new and major programs resulting from a new strategic plan or exceptional unforeseen external events.

6. Continue operations after a disaster.‰

If we were going to add a particular purpose for additional funds to help ICANN do their work, I would recommend some of the high priority or prerequisite recommendations of the CCTRT report - especially those that suggest support for outreach and the new gtld application process for the Global South.

Those sound like things we should budget and not unexpected contingencies....

Alan

Maureen

On Tue, Nov 28, 2017 at 9:26 AM, Alan Greenberg <alan.greenberg@mcgill.ca

...

wrote:

See https://community.icann.org/pages/viewpage.action?pageId=71602968.

Sebastien identified a number of important issues related to the reserve fund, following discussion with him, I have drafted the following short statement (also posted to the Wiki). As the PC closes on Thursday, and I believe it is essential that we make a strong statement, I would like to discuss this on the ALAC call in a few hours.

Alan

----------------

The ALAC strongly supports having the Reserve Fund at the level of 12 months expenses, and higher if there is a practical way of achieving that without unduly impacting ICANN's ability to provide necessary services, ensure the current and ongoing security, stability and resiliency of the DNS, and adequately support its ACs and SOs.

Since the Reserve Fund level is clearly tightly coupled to the level of ICANN operational expenses, any discussion of the reserve should have included a recent history and projection of ICANN operational expenses along with the employee/contractor levels and the Reserve Fund levels over the same period.

At whatever level the Reserve Fund target is set, ICANN must publish a plan on how and when this will be achieved. Given that the proposed target level(s) are significantly above the current Reserve Fund level, and it is unrealistic to believe that we will sustain or exceed this year's return-to-reserve of $5m, ICANN should expeditiously investigate alternative methods of building the reserve to ensure ICANN's future stability. Sources such as the Auction Proceeds, the surplus from the last round of new gTLD, or a levy on any future new gTLD fees should be considered.

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