Alan’s view that CCWG discuss the level of ICANN reserve account is outside
the mandate of CCWG. We may just decide whether or not that account be fed
by using Auction money but decision on the appropriate level of the reserve
account is totally outside or mandate as it is a decision to be made by the
Board and not by this group

Technically, the board has to approve any disbursement plans we come up with, so it's always a board decision, but I agree that using auction money to top up the reserves is a bad idea for two reasons:

1.  It would send a bad message to the community.  ICANN goes through a
   complex multi-year process to decide who to give the auction bonus to
   and decides the most deserving recipient is (drum roll) ICANN itself!
   We've now confirmed every speculation that ICANN is a bunch of corrupt
   navel gazers.

2.  It would send an equally bad message about ICANN's financial
   management.  While the timing of the USG transition was hard to
   predict, the fact that it would happen and would cost extra was not.
   In general, well run organizations match their revenue and expenses,
   including maintaining adequate reserves.  If ICANN didn't plan ahead,
   invaded the reserves, and can only restore them by a top them up from
   this one-time piggy bank, what will happen the next time ICANN doesn't
   plan for something?

Regards,
John Levine, johnl@iecc.com, Primary Perpetrator of "The Internet for Dummies",
Please consider the environment before reading this e-mail. https://jl.ly