[registrars] Guidance from the Constituency requested.... PLEASE !!!!

["Paul M. Kane" <Paul.Kane@REACTO.com>]

All......

I have just come off the NC conf call and I would appreciate your
guidance on DNSO BUDGET issues... (there is to be another call within a
week or so...) .

Please see below for the specific report submitted to the NC this
morning - (I think it should have been published "days" in advance to
allow proper review but putting that to one side.......):

 I think we all agree the DNSO needs a permanent professional staff
member. The expense budget for year 2001 is estimated at $107,600,
e.g.,  $15,371 per constituency (so less year 2000). ( I don't agree
with the itemised expenditure (in their report) but the overall
expenditure budget is fine - if not high). The assumption made is that
the DNSO Secretariat staff member's salary is paid mainly by donations
received. My questions are:

i) Should the budget be set at a higher figure to build up a reserve to
cover the salary of the staff member in years when donations are not
received?? ( We need the seed "donations" monies to "boot-strap" the
process (and I thank Verisign for this generous donation) but in the
interests of stability of employment of the staff/services/contingencies
should the DNSO budget operate a "surplus reserve" account??
ii) The non-commercial constituency wants a 50% "discount" off their
contribution with the shortfall being picked-up by the rest of the
DNSO.  What is the position of the Constituency..... (I don't like the
concept of a discount, IMHO it sets a bad precedent .... but some of you
have mentioned to me privately that it would not be a big issue.....
please advise)
iii) What "consequences" are appropriate if a constituency does not pay
all of its dues by the deadline??

The path we lay today will be used for years to come, .....in
appreciation of your guidance ....

Best

Paul

PS.  The _interim_ DNSO Review document will be published on the 26th
Jan and your DETAILED comments and recommendations are requested by 9th
February

> 2001 DNSO BUDGET
      >
      > As indicated in the attached note to the Committee from ICANN
management,
      > as of 6 December 2000, the DNSO had received a cumulative
$95,500 in
      > payments from DNSO Constituencies during 1999 and 2000.  In
addition to
      > this amount, various DNSO constituencies have indicated that
they would be
      > providing additional payments against their dues fairly soon.
Whatever
      > the amount collected, if the Budget Committee recommendation of
a $59,400
      > DNSO payment to AFNIC is accepted (along with modest payments
already made
      > to the Berkman Center for services provided to the DNSO), this
would leave
      > a balance in the DNSO account of around $35,000 plus any
additional funds
      > collected after 6 December 2000.  These excess funds could
obviously be
      > applied to DNSO expenses in 2001.
      >
      > In addition, as noted in previous Budget Committee reports to
the Council,
      > the Committee is in the process of structuring a "voluntary
fund" that
      > would be independently administered and that would be used to
finance the
      > cost of providing professional support services to the DNSO.
When this
      > voluntary fund is established, donations may be made to it and
VeriSign
      > Global Registry Services has indicated that it would match all
donations
      > made to this fund up to $100,000.
      >
      > As a result of the above, the Committee concluded that it would
construct
      > a proposed DNSO 2001 budget based on the assumptions that there
would be
      > at least a $35,000 carry over of funds from 2000 to 2001 and
that the
      > voluntary fund that is planned would come into operation and it
would be
      > used to cover the costs of professional support for the DNSO in
2001.
      > Consequently, the Committee's budget analysis assumes that no
funds from
      > the regular budget are allocated for professional support and
that in
      > setting 2001 dues for the DNSO constituencies, a roughly $35,000
beginning
      > DNSO balance should be presumed at 1 January 2001.
      >
      > Using these assumptions, the Committee proposes  ( by a majority
but not a
      > unanimous vote) an expense budget for the DNSO for 2001 of
$107,600,
      > consisting of the following general categories of expense and
the
      > reservation of the $35,000 in unused funds from 2000 for
contingency
      > spending in 2001:
      >
      > Administrative                $12,000
      > Telecommunications    $18,100
      > Travel                        $25,500
      > Web/Listserv Maintenance      $30,000
      > Web casting                   $0
      > Language Translations $10,000
      > Professional Services         $12,000
      >
      >
      > In particular, the Committee notes that it is assuming that
there is
      > professional support staff for the DNSO during 2001 and that it
has
      > budgeted no funds for Web casting.
      >
      > If this $107,600  expense budget is accepted, then the dues
payment by
      > each of the seven DNSO Constituencies during 2001 would be
$15,371.
      >
      >
      > CONSEQUENCES OF NON-PAYMENT OF DUES BY CONSTITUENCIES
      >
      > The Committee has considered the issue of consequences of the
non-payment
      > of dues by DNSO Constituencies and believes that a graduated
system of
      > actions should be put in place that would be based on the
duration of the
      > arrearage.  Specific ideas will be discussed at the Council
meeting.
      >
      >