11 Things I Learned From Reading ICANN 2013 Budget
ICANN published its draft budget last night and will open the public comment period on May 25th.
It will approve the budget at the Prague ICANN meeting in June
I went through the budget an found some pretty* interesting things.
While everyone has a top 10, I thought I would go with a top 11:
1.** ICANN needs a new financial planner:
“As of 31 March 2012, the Reserve Fund balance was $52.3 million.
Total investment income for FY13 is budgeted to be $1.0 million”
So less than a 2% return is budgeted.
Since you can find a 5 year CD paying out about 2% if you can’t do better than a 2% return on investment you should find another guy to handle your investments.
In its annual report ICANN had almost $100 million in cash but I guess only 1/2 of that is in the “reserve fund”
2.* When Cost of Living is only going up by 3.6% how does ICANN justify budget increases of 18% and 31% and 39%
The cost of living adjustment issued for 2012 by the US Government is at 3.6% (they haven’t announced 2013 yet)
However ICANN budget includes:
“”FY13 operating expenses are budgeted to be $74 million (without contingency) an increase of 18% over FY12’s forecast.
“FY13 administration costs are expected to increase by 31%.”
“Professional Service costs for FY13’s budget are $20.6 million; a 39.3 percent increase over FY12’s forecast.”
3.* ICANN is a pretty good place to work
As of May 1, 2012, ICANN has 143 employees.
Here are some of the perks an employee gets:
“US-based staff members are entitled to three weeks’ vacation per year for their first five years (and four weeks per year after that).”
“Staff members are eligible to earn a bonus based on achievement of specifically defined performance targets”
“ICANN has a retirement program which they allocate 7% of gross total compensation to”
“Other Personnel Costs are approximately 10% percent of gross* include medical/dental insurance premiums, recruitment and relocation costs.”
4.* ICANN spends a lot on its conferences:
ICANN meeting’s core functions typically cost over $1.5 million per meeting and include:Venue costs including meeting space, audio-visual, technical support functions, power, bandwidth connectivity, and backup provisions which are estimated at about $750,000 per meeting.
“Food and catering, registration administration, printing, office supplies, and shipping are estimated at $250,000 per meeting”
“Meeting interpretation, scribe services, pre-meeting site inspections, and professional planning services are estimated at $500,000 per meeting”
Keep in mind that “Local sponsors typically pay for gala and other costs”
ICANN staff also get free airfare, room and a per diem allowance for attending conferences:
“Airfare costs average $2500 and are adjusted up or down depending on the venue and class of travel.”
“Lodging costs average $250 per night for the seven-day ICANN meeting.