Changes

==Overview==

==Overview==

The SFICR is for large or long projects that are challenging to manage within ICANN's annual budget process.  

The SFICR is for large or long projects that are challenging to manage within ICANN's annual budget process.  

It requires discipline in planning, accounting, and analyzing project expenditures. It is meant to increase transparency and accountability by isolating spending and matching it to funding. It is forward-looking as the fund should help the ICANN organization address activities and projects that have not been included historically.<ref>Planning and Finance Update, ICANN 71 Prep Week PPT, Pg.20</ref>  

It facilitates planning, accounting, and analyzing project expenditures. It is meant to increase transparency and accountability by isolating spending needs for implementation of recommendations, and reporting on outcomes for those implementation projects. It is forward-looking as the fund should help the ICANN organization address activities and projects that have not been included historically.<ref>Planning and Finance Update, ICANN 71 Prep Week PPT, Pg.20</ref>

==History==

==History==

In February 2021, the [[ICANN Board]]'s Finance Committee (BFC) reviewed the proposed revisions to the Investment Policy to include a SFICR.<ref>[https://www.icann.org/resources/board-material/minutes-bfc-2021-02-18-en ICANN Board Finance Committee Minutes 02/18/21]</ref>  

In November 2020, [[ICANN Board]]'s Finance Committee (BFC) mooted the possibility of allocating excess money in ICANN's operating fund to a "project fund to address activities and projects not included in the core organization expenses but are nonetheless included in the Strategic/Operating Plans thus require funding."<ref>[https://www.icann.org/resources/board-material/minutes-bfc-2020-11-06-en ICANN.org - Board Finance Committee Meeting Minutes], November 6, 2020</ref> Conversations continued throughout the winter, and in January 2021, the BFC had developed a proposal to the ICANN Board during its February workshop.<ref>[https://www.icann.org/resources/board-material/minutes-bfc-2021-01-19-en ICANN.org - Board Finance Committee Meeting Minutes], January 19, 2021</ref> In February 2021, the BFC also reviewed the proposed revisions to the Investment Policy to include a SFICR.<ref name="feb21bfc">[https://www.icann.org/resources/board-material/minutes-bfc-2021-02-18-en ICANN.org - Board Finance Committee Minutes], February 18, 2021</ref>  

In May 2021, the ICANN Board resolved to revise the Investment Policy to permit the Creation of a Supplemental Fund for Implementation of Community Recommendations. Specifically, the board agreed that if excess funds exist in the Operating Fund after an allocation to the Reserve Fund has been considered or decided, then an allocation to the SFICR will be considered during the annual planning process based on identified project needs. The SFICR can only be used for multi-year projects. ICANN organization determined that the balance of the Operating Fund (as of 30 June 2020) contained excess funds. Thus, the Board approved the transfer of US$10,000,000 from the Operating Fund to the Reserve Fund and authorized the creation of the SFICR.<ref>[https://www.icann.org/resources/board-material/resolutions-2021-05-12-en#2.b ICANN Board Resolutions 05/12/21]</ref>

In May 2021, the ICANN Board resolved to revise the Investment Policy to permit the Creation of a Supplemental Fund for Implementation of Community Recommendations. Specifically, the board agreed that if excess funds exist in the Operating Fund after an allocation to the Reserve Fund has been considered or decided, then an allocation to the SFICR will be considered during the annual planning process based on identified project needs. The SFICR can only be used for multi-year projects. ICANN organization determined that the balance of the Operating Fund (as of 30 June 2020) contained excess funds. Thus, the Board approved the transfer of US$10,000,000 from the Operating Fund to the Reserve Fund and authorized the creation of the SFICR.<ref>[https://www.icann.org/resources/board-material/resolutions-2021-05-12-en#2.b ICANN Board Resolutions 05/12/21]</ref>

#Per the Investment Policy, '''the Operating Fund''' has the highest priority because it needs to always be at or above its minimum level to enable daily operations.  

#Per the Investment Policy, '''the Operating Fund''' has the highest priority because it needs to always be at or above its minimum level to enable daily operations.  

#Immediately after it is '''the Reserve Fund''', which must be at above its target level to ensure financial sustainability and resilience to unforeseen events.  

#Immediately after it is '''the Reserve Fund''', which must be at above its target level to ensure financial sustainability and resilience to unforeseen events.  

#Finally, '''the SFICR''' follows the Reserve Fund because there are no specific allocation requirements.<ref>[https://www.icann.org/resources/board-material/minutes-bfc-2021-02-18-en BFC Minutes 02/18/21]</ref>  

#Finally, '''the SFICR''' follows the Reserve Fund because there are no specific allocation requirements.<ref name="feb21bfc" />

==References==

==References==