FY14 Budget Approval Timing

As per ICANN's Bylaws, the budget of any given year needs to be approved by the end of the preceding fiscal year (30 June). Historically, this approval has happened during the last ICANN Public meeting of the fiscal year (a mid-term meeting), which usually is scheduled towards the end of June. This year, the mid-term meeting is being held from 14 July – 18 July 2013, which is in the next fiscal year. The public comment forum on the FY2014 Budget is scheduled to close on 20 June 2013. As that is only ten days prior to the close of the fiscal year, there is limited time to assure that all public comments are reviewed and considered (including any potential changes to the draft budget that are incorporated after review of the public comment) prior to providing the budget to the Board for consideration. In addition, several members of the ICANN community have expressed a preference for each year’s budget to be approved at an ICANN Public meeting. To allow for sufficient time for review of public comments and for the Board consideration of the comments to the budget, staff recommended to the Board Finance Committee (BFC) that the FY2014 Budget be approved by the Board at the Durban meeting. The BFC agreed and recommended the Board resolve to approve the FY2014 Budget in Durban. This action enhances the Board’s accountability to the community, in that the Board is responding to stated community desires for budget approval to occur at a public meeting, as well as assuring that the Board has sufficient time to consider the community inputs prior to taking a decision on the FY2014 Budget. In order to allow for ICANN to operate during the beginning of FY2014, beginning on 1 July 2014 through to the date the Board approves the FY2014 Budget, ICANN requires Board authorization. Therefore, the Board is authorizing the President and CEO to operate during this period in accordance with the FY2014 Budget that was posted for public comment. This action will allow for ICANN to maintain its operations pending formal approval of the FY2014 Budget. The other alternative here would be to have the Board take a decision on or before 30 June 2013, and outside of a public meeting. This was not deemed preferable under all of the circumstances. The delay in approval of the budget, as it is accompanied with a measure to allow the operations of ICANN to continue, is not expected to have a material impact on the planned fiscal operations of the organization or the community. This decision will not have an impact on the security, stability or resiliency of the DNS. This is an Organizational Administrative Function of ICANN not requiring public comment.