Update and Reflections on NCSG Finance Committee

[Sam Lanfranco]

	As the temporary acting chair of the NCSG Finance Committee (FC) I would
like to present an update that reviews where we (the FC) are today and
review the history and the scope (terms of reference) of the Financial
Committee. This is particularly important for new members who will be
taking NCSG forward as they assume responsibilities. That is why I am
offering this longish comment.  

	At the moment the FC is constrained to do very little for three reasons.
First, for most of NCSG’s history the committee either didn’t exist or
barely existed, so it has no history of work practices. Another is that at
the moment it consists only of myself and the Chair of NCSG. NCUC is
searching for someone to fill the NCUC vacancy.  

	The major reason however is with regard to the terms of reference for the
FC as contained in the NCSG Charter. When the Charter was formed there were
quite different expectations about NCSG. As NCSG has evolved most of those
expectations have been beyond reach. The key wording from the NCSG Charter
is listed below my commentary and I ask new members to read both my
commentary and the Charter sections with care, and possibly go to the full
NCSG Charter at:  

	
https://gnso.icann.org/sites/default/files/filefield_25801/ncsg-charter-05may11-en.pdf
(https://gnso.icann.org/sites/default/files/filefield_25801/ncsg-charter-05may11-en.pdf)


	I invite comment from long time NCSG members, to correct any errors I may
have and to offer comments.  

	First some commentary based on the NCSG Charter and my experience. 

	The NCSG Charter was adopted in 2011. I engaged with ICANN in 2012, in
Toronto, and became a member of NCSG and NPOC a year or two later. From
that time until either ICANN in Helsinki or the Intersessional in Iceland
(where I joined as a last-minute replacement at my expense) I believe there
had been virtually no operational FC. At that time then member Ed Morris
and several of us convened to re-animate a Finance Committee. For the past
three years or so it has struggled to gain some operational traction.   

	Most of what was detailed as the duties of the FC in the NCSG Charter has
proven impossible. The FC has never had any funds to control, hence (as per
the Charter) it has not established a firm financial footing for NCSG, and
has not had to meet relevant legal or ICANN requirements. NCSG does not
require “voluntary contributions” [dues] from members, as called for in
the Charter, so the FC has no rates to determine. It has never fund raised
or received funds so there is no work for an NCSG treasurer.  

	NCUC has received funds (from PIR I believe) and administers those
completely independent of NCSG and the NCSG FC. NPOC received some funding
in the distant past (from PIR I believe). Several years ago I and the Chair
of NPOC set up an NPOC account in Canada.  It has remained dormant, never
having any funds. I believe NPOC has a small account in Europe, completely
independent of NCSG and the NCSG FC.  

	As temporary acting Chair I took over lead responsibility August 1, 2019,
for work-in-progress in two areas, one having to do with FC operational
procedures and the other with a member’s code-of-conduct (for the three
members and any observers). Neither is pressing and while I will soon
forward the short code-of-conduct document to the NCSG Executive Committee
I personally view it as a simple elaboration of ICANN’s behavior
guidelines.  

	The FC procedures document will require more constituency deliberation. It
also calls for the FC assisting in the research for NCSG submissions on
proposed ICANN budgets. It will also guide the Finance Committee in dealing
with two areas, never previously undertaken by the FC, that are set down in
Section 2.6 of the Charter. Those are: 
	* Work with the ICANN staff to determine levels of support available to
the NCSG
	* Work with ICANN finance officers to insure the NCSG and its
Constituencies receive fair and equivalent financial support from ICANN
	These three areas:
	* ICANN levels of support for NCSG
	* Constituencies receiving fair and equivalent financial support from
ICANN
	* Doing the research for NCSG submissions on proposed ICANN budgets 
	are ambitious, venture into new and possibly contested areas, and will
demand considerable work from a three-person Finance Committee where one
member is also the Chair of NCSG. Hence the need for a wider Constituency
discussion on what is viable here, once the FC is up to its three-person
full strength.  

	Here is are the key relevant Financial Committee pieces from the NCSG
Charter at:  

	
https://gnso.icann.org/sites/default/files/filefield_25801/ncsg-charter-05may11-en.pdf
(https://gnso.icann.org/sites/default/files/filefield_25801/ncsg-charter-05may11-en.pdf)


	NCSG Finance Committee (NCSG-­‐FC): [From Section 3] 

	The NCSG Finance Committee is responsible for establishing a firm
financial footing for the NCSG and administering NCSG funds within a
defined framework that meets relevant legal requirements as well as
requirements imposed by ICANN. The NCSG-­‐FC’s responsibilities
include fund raising, setting voluntary contribution levels for members,
determining procedures for the distribution of funds, and for monitoring
the utilization of funds. The NCSG-­‐FC will also be responsible for the
Treasurer function. Formation of the NCSG-­‐FC, its composition, and
duties within the NCSG-­‐FC are set out in Section 2.6 

	The key wording from Section 2.6 is: 

	2.6 The Financial Committee 

	The NCSG Finance Committee is responsible for the following: 

	•Elect a Chair who will also serve as NCSG Treasurer; 

	•Determine rates for voluntary contributions from members; 

	•Develop and deploy a fund-­‐raising plan for the NCSG; 

	•Work with the ICANN staff to determine levels of support available to
the NCSG; 

	•Work with ICANN finance officers to insure the NCSG and its
Constituencies receive fair and equivalent financial support from ICANN; 

	•Accounting for any funds received by the NCSG from any source.  

	This accounting will include the following: 

	§All funds raised by voluntary membership fees or otherwise must be held
in a separate NCSG account.
§Proper controls must be implemented.

§Regarding Expenditures: 

	•All expenditures under 500 Euro may be made on the authority of the
NCSG Treasurer
	•All expenditures over 500 Euro must be approved by the NCSG-­‐FC 

	§Financial reports must be prepared annually and be made public. 

	•Provide internal conflict resolution process regarding funds. 

	•Provide the oversight of the Treasurer function. 

	•Fulfill any other accounting, auditing or other prescribed financial
requirements as set by the ICANN Board of Directors for organizations
within the ICANN structure. 

	•Document methods and procedures used for accounting, reporting and
budget creation. Such documentation is subject to review by the
NCSG-­‐EC 

	[Comment] I again urge new members of NCSG to read this with care and
reflect on where they might stand on the issues at hand and where they may
offer help. 

	Respectfully submitted, 

	Sam Lanfranco,

	 Temporary Acting Chair, NCSG Finance Committee.  
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