[nc-budget] ADDITION TO: AGENDA FOR TODAY'S BUDGET COMMITTEE TELECONFERENCE

["Cochetti, Roger" <RCochetti@verisign.com>]

Sorry I omitted the attached request from Glen, which is a fourth item for
today's meeting:

Dear Budget Committee,

In view of the ICANN conference in Accra in March, may I submit estimated
traveling expenses, payable, if possible in advance:
Return air fare:         $790
Hotel 5 nights           $750
COL @ $60 a day:  $360
Total                         $1900

Thank you very much for your consideration
Glen
DNSO Secretariat


Roger










Roger J. Cochetti
Senior Vice President & Chief Policy Officer
VeriSign
rcochetti@verisign.com
202-973-6600


-----Original Message-----
From: Cochetti, Roger 
Sent: Thursday, January 10, 2002 10:40 AM
To: 'nc-budget@dnso.org'
Subject: AGENDA FOR TODAY'S BUDGET COMMITTEE TELECONFERENCE


Please accept my apologies for not getting this agenda out sooner.  The
holidays have put me a bit behind on several things and there are no new
items for today's meeting: our two agenda items have both been before us for
several months and are actually carryovers from our December 19th meeting:
The treatment of payments from NC Constituencies (should they be credited to
the oldest or the newest invoice?) and the 2002 DNSO budget.  In addition,
four routine invoices are attached for our approval.

Rather than re-introduce new materials on these, I am re-sending the
materials that were sent to you previously on both and attaching copies of
the four invoices that were received in late December.

1. TREATMENT OF NC CONSTITUENCY PAYMENTS

	"First, attached you will find a current financial statement for the
DNSO.  Please note that it continues to use the previous practice of
crediting DNSO Constituencies' payments to the newest  --as opposed to the
oldest-- debt to the DNSO.  Although we have not addressed this issue one
way or another, it seemed to me that for constituency, we should continue to
view financial reports formatted in this manner until we decide whether
payments should be credited to the oldest or the newest debt to the DNSO."

2. DNSO 2002 BUDGET

" we need to complete work on the DNSO's 2002 budget.  In this context, I
attach a revised proposal for a 2002 DNSO budget that is based informal
conversations with Committee members.  Among many others, two factors need
to be considered when we take this item up:

	1) ICANN management has advised us that they believe that it is
prudent and necessary for the DNSO to plan on always 	having a minimum
cash reserve in its accounts of $30,000.  Moreover in part because of
concerns over their own possible 	liability for DNSO financial
obligations, ICANN management has advised us that if the DNSO accounts were
planned to go 	below $30,000 or actually did go below $30,000, then ICANN
management would exercise its option to terminate its 	administration of
the funds for the DNSO.  Under these circumstances, since our 2002 budget
would normally be designed 	to be fully spent by year-end, if we do not
add a $30,000 "permanent reserve" into our requirements for 2002, then we
would probably fall below ICANN management's minimum cash reserve
requirements sometime around August 2002.  Based on 	ICANN management's
notice to us, unless we add this "permanent reserve" to the 2002 DNSO
budget, they apparently 	reserve the right to terminate their
administrative relationship with us at any time without further notice.  For
this 	reason, my attached 2002 budget proposal now includes a new item of
a $30,000 "permanent reserve"; and 

	2) The Names Council at its last meeting approved a resolution
requesting that ICANN appropriate from its 2002-2003 	funds $170,000 to
cover the operating expenses of the DNSO for 2002.  We have no reaction or
response from ICANN 	management or the ICANN Board on this request, other
than an acknowledgement of it.  Consequently, I believe that we 	have
no alternative other than to proceed on the assumption that Names Council's
request is not agreed to and to 	develop a 2002 DNSO budget of our
own.  Obviously, if ICANN accepts the Names Council's request, we will have
to alter 	our course at that time. 

I have asked Louis Touton to be available to answer any questions on ICANN
management's notice to us on the need for a $30,000 permanent reserve and,
to the extent that he can, comment on the status of ICANN management and
Board review of the Names Council request for a $170,000 ICANN appropriation
to the DNSO during their 2002-2003 budget year.


PROPOSED DNSO 2002 BUDGET (1 January 2002 -- 31 December 2002)

======================================================================= 


Current funds							$144K

Rough Commitments Against Current Funds Through EOY 2001

	AFNIC '00   $59K
	AFNIC  '01  $40K
	Other       $ 4K
	TOTAL       $103K

Projected surplus of Funds at Year-End 2001			$41K

=======================================================================

PROJECTED DNSO EXPENSES IN 2002:  MINIMUM 

Secretariat (including AFNIC)				$70K

Connectivity						$10 K

Telephone							$15K

Secretariat Travel					$15K

Misc								$30K

Permanent Reserve						$30K


TOTAL								$170K

LESS 2001 CARRYOVER					-$41K

ADDITIONAL FUNDS NEEDED					$129K

PER CONSTITUENCY (7)					$18.4K


POTENTIAL ADDED EXPENSES				

Partial Staff Support					$50K
($7.2K/Constituency)

Web casting							$50K 

Translation Services					$50K  

Full Staff Support					$120K
($17.1K/Constituency)


============================================================================
============================

3.  NEW INVOICES

see attached


Roger Cochetti
Chair
Names Council Budget Committee