For the Six Months Ending December 2013
The ICANN change in net assets is $3.3M, or 13.6%, higher than budget during the first six months of FY14 mainly as a result of (i) delays in planned operations ($2.8M, see Operating Expenses below), (ii) timing differences of ccTLD contributions ($1.3M), (iii) Reserve Fund and New gTLD investment income of ($3.7M) and ($1.4M), respectively, offset by (iv) delayed evaluation processing in the New gTLD program resulting in lower revenues recognized for the period (-$8.0M).
The Funds under Management by ICANN decreased by $28.2M during the first six months to a total of $331.6M, mainly as a result of the payment of New gTLD evaluation expenses ($16.9M) and general operating expenses for ICANN Ops ($11.3M).
Financial Position
The funds under management decreased by $28.2M during the quarter as a result of the following:
– A decrease of the New gTLD funds by $51.4M due to:
(i) the net reimbursement to ICANN Operations of the accumulated direct/allocated costs for $3.0M, (ii) the reimbursement to ICANN Operations of the historical development costs for $19.2M,
(iii) net refunds to applicants for $5.3M,
(iv) payments to vendors/employees for $25.5M,
(v) partially offset by appreciation of the new gTLD investments for $1.7M.
– An increase of the ICANN Operations funds by $23.2M due to:
(i) the net reimbursement from the New gTLD funds of the direct/allocated costs for $3.0M,
(ii) the reimbursement from the New gTLD program of the historical development costs for $19.2M, (iii) all other net operating variances for $1.0M.
The decrease of the deferred revenues balance of $48.1M corresponds to:
(i) the amount of revenues recognized for the New gTLD program ($45.5M), (ii) the refunds to New gTLD applicants ($3.7M)
(iii) other (-$1.1M).
Support and Revenue
Revenues for ICANN Ops were $1.8M favorable to budget primarily due to the timing of the non-contracted contribution from the ccTLDs for fiscal year 2013.
Revenues for New gTLD program were $22.3M unfavorable to budget primarily due to lower costs incurred in the first six months of FY14, resulting in lower revenues recognized for the period
Operating Expenses
Personnel costs for ICANN Ops were $0.3M favorable to budget primarily due to delayed hires offset by unbudgeted positions. Personnel costs for the New gTLD program were $1.5M favorable to budget primarily due to delayed hires.
Travel and Meetings costs for ICANN Ops and the New gTLD Program were relatively flat to budget.
Professional Services costs for ICANN Ops were $2.4M favorable to budget primarily due to delayed security projects, IDN Variant projects, and signing of EBERO contracts. Professional Services costs for the New gTLD Program were $12.9M favorable to budget due to lower costs incurred for Initial and Extended Evaluation and delayed Pre-delegation testing and contracting.
Administrative costs for ICANN Ops were $0.6M favorable to budget primarily due to timing of sponsorships and IT costs.
Administrative costs for the New gTLD Program were $0.2M favorable to budget due to a lower allocation of ICANN ops shared services costs to the program.
Bad debt expenses were $0.2M unfavorable to budget.
Depreciation costs were $0.4M unfavorable to budget primarily due to higher and earlier than budgeted capital projects expenditures.
Other Income /Expense
Investment Income was $3.7M and $1.4M favorable to budget for ICANN Ops and the New gTLD Program, respectively due to investment income/ loss not budgeted in FY14.
1
Statement of Activity FY14 Budget by Quarter In Thousands
|
Support and Revenue Registry New gTLD Application Fees Total Support and Revenue Expenses Personnel Total Expenses Contingency Total Other (Income)/Expense Change in Net Assets Before Historical Costs and Reserves Hist. Development Costs/ (Reimbursement) Change In Net Assets |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Total Year |
|
$10,115 $0 8,448 0 206 0 10,115 8,448 206 000 000 450 0 450 0 41,411 41,411 |
$10,068 $0 8,005 0 10,068 8,005 206 0 206 100 0 100 000 450 0 450 0 26,343 26,343 |
$12,828 $0 9,237 0 12,828 9,237 206 0 206 150 0 150 000 450 0 450 0 22,665 22,665 |
$14,545 $0 10,389 0 206 0 1,650 0 14,545 10,389 206 1,650 000 450 0 450 0 21,687 21,687 |
$47,556 $0 36,079 0 823 0 1,900 0 47,556 36,079 823 1,900 000 1,800 0 1,800 0 112,105 112,105 |
|
|
19,219 41,411 60,629 |
18,829 26,343 45,172 |
22,870 22,665 45,535 |
27,240 21,687 48,927 |
88,158 112,105 200,263 |
|
|
7,464 2,965 4,062 444 4,805 18,531 2,797 917 120 0 510 0 10,429 4,506 23,336 3,714 120 510 |
8,973 2,779 3,818 430 6,197 10,412 3,120 919 120 0 677 0 11,753 4,248 16,609 4,039 120 677 |
9,874 2,552 3,820 411 5,436 8,669 2,902 878 120 0 677 0 12,426 4,231 14,105 3,781 120 677 |
10,404 2,217 3,792 357 4,805 8,579 3,278 817 120 0 677 0 12,621 4,149 13,384 4,095 120 677 |
36,715 15,493 21,243 12,098 480 2,540 10,513 1,642 46,190 3,531 0 47,229 17,134 67,433 15,628 480 2,540 |
|
|
19,759 22,856 42,615 |
22,905 14,540 37,445 |
22,829 12,510 35,339 |
23,076 11,970 35,046 |
88,569 61,875 150,444 |
|
|
925 0 925 000 000 |
925 0 925 000 000 |
925 0 925 000 000 |
925 0 925 000 000 0 (94) (94) |
3,700 0 3,700 000 000 |
|
|
925 (141) 784 |
925 (125) 800 |
925 (110) 815 |
925 (94) 831 |
3,700 (470) 3,230 |
|
|
(1,465) 18,695 17,230 000 (4,317) 4,317 (0) 000 000 |
(5,001) 11,928 6,927 000 (2,746) 2,746 0 000 000 |
(884) 10,265 9,381 000 (2,363) 2,363 (0) 000 000 |
3,239 9,811 13,050 000 (2,261) 2,261 0 000 000 |
(4,111) 50,699 46,588 000 (11,687) 11,687 (0) 000 000 |
|
|
$2,852 $14,378 $17,230 |
($2,255) $9,182 $6,927 |
$1,479 $7,902 $9,381 |
$5,500 $7,550 $13,050 |
$7,576 $39,013 $46,588 |
|
*Includes Community Support Requests
**Exceptional Items are included in “Expenses” section above.
2
ICANN
Statement of Activity
Actual vs. Budget
For the Six Months Ending December 2013 In Thousands
|
Support and Revenue Registry Registrar R.I.R. ccTLD ccTLD IDN Contributions & Other Income Revenues from NgTLD App. Fees Total Support and Revenue Expenses Personnel Total Expenses Contingency Total Other (Income)/Expense Change in Net Assets Before Historical Costs and Reserves New gTLD Applicant Support Hist. Development Costs/ (Reimbursement) Exceptional Items Change In Net Assets |
* ** |
FY 14 Actuals |
FY 14 Budget |
Variance |
||
|
$20,389 $0 17,003 0 412 0 1,381 0 20,389 17,003 412 1,381 000 640 3 643 0 45,456 45,456 |
$20,183 $0 16,453 0 20,183 16,453 412 0 412 100 0 100 000 900 0 900 0 67,754 67,754 |
$205 $0 550 0 0 0 1,281 0 0 0 (260) 3 $205 1.0% 550 3.3% 0 0.0% 1,281 1281.2% 0 0.0% (257) (28.6%) (22,298) (32.9%) |
||||
|
39,824 45,460 85,283 |
38,047 67,754 105,801 |
1,776 (22,294) (20,518) (19.4%) |
||||
|
16,103 4,288 7,796 986 8,615 16,088 5,338 1,680 400 0 1,619 0 20,391 8,782 24,702 7,019 400 1,619 |
16,438 5,744 7,880 874 11,002 28,942 5,917 1,836 240 0 1,187 0 22,182 8,754 39,944 7,753 240 1,187 |
335 1,456 84 (112) 2,388 12,854 579 155 (160) 0 (432) 0 1,791 (28) 15,242 734 (160) (432) 8.1% (0.3%) 38.2% 9.5% (66.5%) (36.4%) |
||||
|
39,870 23,043 62,913 |
42,664 37,396 80,060 |
2,794 14,354 17,147 21.4% |
||||
|
250 0 250 000 48 40 88 (3,745) (1,671) (5,415) |
1,850 0 1,850 000 000 |
1,600 0 1,600 86.5% 0 0 0 0.0% (48) (40) (88) 0.0% 3,745 1,405 5,149 (1936.6%) |
||||
|
(3,447) (1,631) (5,078) |
1,850 (266) 1,584 |
5,297 1,365 6,662 420.5% |
||||
|
3,400 24,048 27,448 000 (5,642) 5,642 0 000 000 |
(6,466) 30,624 24,157 000 (7,063) 7,063 (0) 000 000 |
9,867 (6,576) 3,291 13.6% 0 0 0 0.0% (1,421) 1,421 (0) 100.0% 0 0 0 0.0% 0 0 0 0.0% |
||||
|
$9,042 $18,406 $27,448 |
$597 $23,561 $24,157 |
$8,446 ($5,154) $3,291 13.6% |
||||
Looks to be around $600K in personnel expenses per employee. It might look a touch high but remember, that does include health and retirement. benefits.