ICANN|ARCHIVES

Internet Corporation for Assigned Names and Numbers

Presented below are: (1) the ICANN Board Resolution on Audit Committee from the Los Angeles meeting which framed the Committee's work and (2) a proposed Audit Committee charter consistent with the generally accepted accounting and audit principles for non-profit organizations.

(1) ICANN Board Resolution on Audit Committee - Los Angeles Meeting

RESOLVED [99.127], that there be, and there hereby is, effective immediately, designated a Committee of the Board to be named the "Audit Committee," responsible for recommending the selection of external auditors to the Board; receiving, reviewing, and forwarding to the Board the annual financial report of the external auditors; and such other matters as may warrant its attention.

FURTHER RESOLVED [99.128], that Linda Wilson be, and hereby is, appointed chair of the Audit Committee, and that Greg Crew and Philip Davidson be, and hereby are, appointed members of the Audit Committee.

(2) Proposed Charter for the Audit Committee

I. Purpose

The Audit Committee of the ICANN Board is responsible for recommending the selection of external auditors to the Board; receiving, reviewing, and forwarding to the Board the annual financial report of the external auditors; and such other matters as may warrant its attention.

II. Membership of Audit Committee

The Audit Committee shall be comprised of three or more directors as determined and appointed annually by the Board, each of whom shall be free from any relationship that, in the opinion of the Board, would interfere with the exercise of his or her independent judgment as a member of the Committee. Unless a chair is appointed by the full Board, the members of the Committee may designate a Chair by majority vote of the full Committee membership.

III. Scope of Audit Committee Work

In accomplishing its assigned responsibilities, the Audit Committee will review the following listed matters and such other matters as may warrant its attention. It may, with approval of the Board, engage additional assistance to undertake such reviews of financial management performance as it deems necessary.

(1) Recommend to the Board of Directors the selection of ICANN's external auditors and the annual fees to be paid for services rendered by the external auditors. Review each proposed audit plan developed by management and the external auditors periodically review the performance of the external auditors, and recommend to the Board any proposed retention or discharge of the external auditors.

(2) Review the Corporation's annual financial statements and reports as required by the Bylaws, including the compliance of the corporation's accounting and financial management systems and reports with generally accepted accounting principles for nonprofit organizations.

(3) Review and forward to the Board the annual financial management letter of the external auditors, with such comments of its own as may be appropriate.

(4) Periodically review the corporation's system of internal controls, including its risk management policy and any accompanying insurance coverage, and make recommendations to the Board for changes it considers desirable.