Historical Resolution Tracking Feature » Transfers to Reserve Fund and Supplemental Fund for Implementation of Community Recommendations
Important note: The explanatory text provided through this database (including the summary, implementation actions, identification of related resolutions, and additional information) is an interpretation or an explanation that has no official authority and does not represent the purpose behind the Board actions, nor does any explanations or interpretations modify or override the Resolutions themselves. Resolutions can only be modified through further act of the ICANN Board.
Transfers to Reserve Fund and Supplemental Fund for Implementation of Community Recommendations
Whereas, the Operating Fund includes the funds used for ICANN's day-to-day operations and must contain enough funds to cover a minimum of three months of ICANN organization's operating expenses.
Whereas, periodically, excess funds in the Operating Fund may be transferred to the Reserve Fund to ensure its balance is at or above the minimum target level, as determined and approved by the Board.
Whereas, a Supplemental Fund for Implementation of Community Recommendations (SFICR) will allow ICANN to segregate resources in support of increasing the capacity of the organization to address projects that are multi-year and focus on community recommendations that are approved or soon to be adopted by the Board but cannot fit within the annual budget.
Whereas, periodically, if excess funds exist in the Operating Fund after an allocation to the Reserve Fund has been considered or decided, an allocation to the SFICR will be considered based on the project needs identified.
Whereas, ICANN organization has determined that the balance of the Operating Fund as of 31 May 2021, based on unaudited Financial Statements, contained excess funds.
Whereas, both ICANN organization and the Board Finance Committee have recommended that the Board approve a US$5,000,000 transfer to the Reserve Fund and a US$15,000,000 transfer to the SFICR from the Operating Fund.
Resolved (2021.07.22.04), the Board approves the transfer of US$5,000,000 from the Operating Fund to the Reserve Fund.
Resolved (2021.07.22.05), the Board approves the transfer of US$15,000,000 from the Operating Fund to the SFICR.
As part of ICANN's Investment Policy, the Operating Fund should be at a level of funds to cover a minimum of three months of ICANN organization's operating expenses, and that any amount determined to be in excess may be transferred to the Reserve Fund to ensure its balance is at or above the minimum target level, as determined and approved by the Board.
The Supplemental Fund for Implementation of Community Recommendations (SFICR) establishes segregated resources in support of increasing the capacity of the organization to address activities projects that are multi-year and focus on community recommendations that are approved or soon to be adopted by the Board but cannot fit within the annual budget. If the Operating Fund contains excess after an allocation to the Reserve Fund has been considered or decided, an allocation to the SFICR will be determined based on the project needs identified.
ICANN organization has evaluated the balance of the Operating Fund as of 31 May 2021 on the basis of its unaudited Financial Statements and has determined that excess funds of US$5,000,000 should be transferred to the Reserve Fund and US$15,000,000 should be transferred to the SFICR.
This action is consistent with ICANN's mission and is in the public interest as it is important to ensure stability of ICANN organization in the way of a robust Reserve Fund in case use of a Reserve Fund becomes necessary. Furthermore, this action is consistent with ICANN's mission and is in the public interest as the SFICR will fund projects, as approved by the Board, when the size, complexity, and length of the projects create a challenge to be solely funded by recurring funding.
This action will not have a financial impact on ICANN, and will not have an impact on the security, stability, or resiliency of the domain name system.
This is an Organizational Administrative function that does not require public comment.