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RECONCILIATION OF REVENUE PER AFS WITH REVENUE PER RETURN SCHEDULE D, PART XII, LINE 2D $503 - ROUNDING RECONCILIATION OF EXPENSES PER AFS WITH EXPENSES PER RETURN SCHEDULE D, PART XIII, LINE 2D ($26,918) - UNREALIZED GAIN/LOSS ON FOREIGN EXCHANGE $ 3 - ROUNDING --------- ($26,915) - TOTAL true Middle East and North Africa 3 Program Services SEE FORM 990 PART III 922674 Europe (Including Iceland and Greenland) 1 19 Program Services SEE FORM 990 PART III 15244310 East Asia and the Pacific 1 46 Program Services SEE FORM 990 PART III 4132301 South America 1 Program Services SEE FORM 990 PART III 1176172 North America 174 Program Services SEE FORM 990 PART III 3467945 Sub-Saharan Africa 1 Program Services SEE FORM 990 PART III 694327 Central America and the Caribbean 1 Program Services SEE FORM 990 PART III 41419 South Asia Program Services SEE FORM 990 PART III 88517 2 245 2 245 25767665 25767665 Europe (Including Iceland and Greenland) Atlas Sponsorships 44925 WIRE/CASH Europe (Including Iceland and Greenland) Cybersecurity Sponsorship 22982 WIRE/CASH Europe (Including Iceland and Greenland) ROUNDTABLE SPONSORSHIP 16474 WIRE/CASH Europe (Including Iceland and Greenland) IISI FORUM SPONSORSHIP 10000 WIRE/CASH Europe (Including Iceland and Greenland) e-Accessibility Sponsorship 8107 WIRE/CASH Europe (Including Iceland and Greenland) WCIT-12 Sponsorship 6022 WIRE/CASH Central America and the Caribbean IGF Forum 2012 10000 WIRE/CASH Middle East and North Africa AMAG-4 Sponsorship 10000 WIRE/CASH South America LACNIC Anniv. Sponsorship 7000 WIRE/CASH South America 2012 LACTLD Sponsorship 6500 WIRE/CASH 0 10 FELLOWSHIP PROGRAM Central America and the Caribbean 3 1500 WIRE/CASH 6454 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM East Asia and the Pacific 8 4000 WIRE/CASH 25034 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM Europe (Including Iceland and Greenland) 3 1500 WIRE/CASH 5838 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM Middle East and North Africa 7 3500 WIRE/CASH 16806 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM North America 1 500 WIRE/CASH 2256 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM Russia and the Newly Independent States 5 2500 WIRE/CASH 13286 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM South America 9 4500 WIRE/CASH 26805 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM South Asia 9 4500 WIRE/CASH 20127 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM Sub-Saharan Africa 13 7778 WIRE/CASH 40211 AIRFARE/LODG ACTUAL EXP. false false false false false false ORGANIZATION'S PROCEDURES FOR MONITORING USE OF GRANT FUNDS OUTSIDE THE US SCHEDULE F, PART I, LINE 2 AN ICANN FELLOWSHIP IS A GRANT OF SUPPORT THAT IS AWARDED TO ENABLE INDIVIDUALS FROM STAKEHOLDER GROUPS AROUND THE WORLD TO ATTEND ICANN PUBLIC MEETINGS. THIS IS A MEANS-TESTED PROGRAM. APPLICANTS MUST BE CITIZENS OF ECONOMICALLY ELIGIBLE COUNTRIES. ICANN USES THE WORLD BANK CLASSIFICATION OF LOW, LOWER-MIDDLE, AND UPPER-MIDDLE ECONOMIES. THE FELLOWSHIP COVERS THE COST OF ECONOMY CLASS AIRFARE AND HOTEL, AS WELL AS PROVIDING A STIPEND AFTER SUCCESSFUL COMPLETION OF THE PROGRAM, IN ORDER TO ASSIST IN COVERING SOME BASIC EXPENSES INCURRED BY THE FELLOW. RECIPIENTS ARE EXPECTED TO ACTIVELY CONTRIBUTE TO ICANN PROCESSES AND BE A PART OF THE NEXT GENERATION OF ICANN LEADERSHIP. FELLOWSHIPS ARE AWARDED BY AN INDEPENDENT SELECTION COMMITTEE BASED ON A MIX OF CRITERIA INCLUDING APPLICANT EXPERIENCE AND REFERENCES, GEOGRAPHIC PROXIMITY TO MEETING, RECEIPT OF PAST FELLOWSHIPS, ETC. INDIVIDUALS MAY NOT RECEIVE THIS GRANT OF SUPPORT MORE THAN THREE TIMES. FOR EACH PUBLIC MEETING THAT INCORPORATES THE FELLOWSHIP PROGRAM, A LIST OF SELECTED FELLOWS TO ATTEND THE UPCOMING MEETING IS POSTED ON THE ICANN WEBSITE PRIOR TO THE MEETING. SUBSEQUENT TO THE PUBLIC MEETING, A LIST OF FELLOWS WHO ATTENDED THE MEETING IS POSTED ON THE ICANN WEBSITE. TRAVEL AND HOTEL COSTS ASSOCIATED WITH FELLOWS PRE-SELECTED TO ATTEND THE PUBLIC MEETING ARE BOOKED AND PAID FOR DIRECTLY BY ICANN. ALL FELLOWS ARE ELIGIBLE TO RECEIVE A FLAT STIPEND NOT TO EXCEED U.S. $500.00. STIPENDS ARE GENERALLY PROVIDED TO FELLOWS BY WIRE TRANSFER AND ARE PAID TO EACH FELLOW SUBSEQUENT TO THE MEETING AND AFTER THE FELLOW HAS DEMONSTRATED COMPLETION OF THE FELLOWSHIP PROGRAM. DURING THE TWELVE MONTHS ENDED JUNE 30, 2013, ICANN PAID $187,095 TO ALLOW FIFTY-EIGHT (58) FELLOWSHIP PARTICIPANTS TO ATTEND TWO ICANN PUBLIC MEETINGS. ICANN ALSO PROVIDES TRAVEL SUPPORT TO OTHER MEMBERS OF THE VOLUNTEER COMMUNITY TO FACILITATE POLICY DEVELOPMENT EFFORTS AND OUTREACH IMPORTANT TO ICANN'S MISSION. THE PROCESS FOR SELECTION IS LARGELY BASED ON SPECIFIC CRITERIA ESTABLISHED BY EACH STAKEHOLDER/CONSTITUENCY GROUP. TRAVEL SUPPORT EXTENDED TO THESE GROUPS IS REPORTED AS PART OF TRAVEL EXPENSES IN PART IX, STATEMENT OF FUNCTIONAL EXPENSES. FOR OTHER CONTRIBUTIONS, STAKEHOLDER ENGAGEMENT STAFF DEVELOP REQUESTS BASED UPON ICANN'S STRATEGIC PLAN AND ICANN'S OPERATING PLAN. SPECIFIC NEEDS WITHIN SPECIFIC REGIONS OF THE WORLD ARE CONSIDERED. ICANN EXECUTIVES REVIEW THE LIST OF SUGGESTED CONTRIBUTIONS AND DECIDE ON WHICH CONTRIBUTIONS TO PURSUE. THE ICANN BOARD AND COMMUNITY CONSIDER THE CONTRIBUTIONS WITHIN THE OVERALL FISCAL YEAR OPERATING PLAN AND BUDGET PROCESS. SUPPLEMENTAL INFORMATION SCHEDULE F, PART I, LINE 3 AT JUNE 30, 2013, ICANN HAD ONE INTERNATIONAL OFFICE LOCATED IN BRUSSELS, BELGIUM. THE SYDNEY, AUSTRALIA OFFICE WAS CLOSED IN FEBRUARY 2013. THE NUMBER OF PEOPLE IN EACH REGION SHOWN IN PART I LINE 3 COL (C) OF SCHEDULE F INCLUDES EMPLOYEES AND LONG-TERM INDEPENDENT CONTRACTORS WORKING FOR ICANN. THE TOTAL EXPENDITURES BY REGION SHOWN IN PART I, LINE 3 COL (F) OF SCHEDULE F INCLUDES: A. THE AMOUNTS PAID (FOR COMPENSATION, TRAVEL REIMBURSEMENT, AND OTHER COSTS AND EXPENSES) FROM THE US ACCOUNTS PAYABLE DEPARTMENT APPLICABLE TO THE REGION. B. ALL COSTS ASSOCIATED WITH THE TWO ANNUAL PUBLIC MEETINGS (I.E. TORONTO, CANADA; BEIJING, CHINA) FOR FISCAL YEAR 2013. C. AMOUNTS EXPENDED TO FUND THE SYDNEY, AUSTRALIA AND BRUSSELS, BELGIUM BRANCH OFFICES AND PERSONNEL COSTS INCLUDING OFFICE EXPENSES, TRAVEL-RELATED AND OTHER EXPENSES PAID BY THE US ACCOUNTS PAYABLE DEPARTMENT. D. ALL PAYMENTS MADE TO INTERNATIONAL BASED EMPLOYEES AND CONTRACTORS WERE RECORDED IN US DOLLARS. STATEMENT OF ACTIVITIES OUTSIDE THE UNITED STATES SCHEDULE F, PART I, LINE 3 THE SUBTOTAL ON LINE 3(A), COLUMN C REPRESENTS THE INDIVIDUAL EMPLOYEES. THE ACTIVITIES PER REGION IN LINE 3 REPRESENT THE INDIVIDUAL EMPLOYEES AND LONG-TERM INDEPENDENT CONTRACTORS. 176600 false 176600 176600 CA true false false false 0.00000 1.00000 XAVIER CALVEZ 12025 WATERFRONT DRIVE SUITE 300 LOS ANGELES CA 900942536 false true 0 SCHEDULE G, PART III, LINE 17B THE ONLY PRIORITIZATION DRAW ICANN HELD WAS CONDUCTED ON 17 DECEMBER 2012 IN LOS ANGELES TO ASSIGN PRIORITY NUMBERS TO ALL NEW GTLD APPLICATIONS. THIS DRAW WAS CONDUCTED PURSUANT TO ICANN'S NON-PROFIT RAFFLE REGISTRATION NUMBER RF0007607. THESE PRIORITY NUMBERS WERE USED TO DETERMINE THE ORDER IN WHICH INITIAL EVALUATION RESULTS ARE RELEASED. IN FISCAL YEAR 2014, 100% OF THE PROCEEDS WERE DONATED TO ELIGIBLE CALIFORNIA CHARITABLE ORGANIZATIONS IN ACCORDANCE WITH CALIFORNIA LEGAL REQUIREMENTS. ICANN SENT $58,866.67 EACH TO THE FOLLOWING CHARITIES: WIKIMEDIA FOUNDATION INVENEO KIVA MICROFUNDS X true true X X X X X X false false false false false false false true false Fadi Chehade 165487 0 0 0 77544 0 23674 0 6426 0 273131 0 0 0 Akram Atallah 482719 0 112550 0 0 0 29500 0 24657 0 649426 0 0 0 Xavier Calvez 262500 0 80552 0 0 0 24834 0 22908 0 390794 0 0 0 John Jeffrey 380409 0 102101 0 0 0 12500 0 24657 0 519667 0 0 0 Kurt Pritz 332111 0 117968 0 0 0 29500 0 22514 0 502093 0 0 0 Steve Antonoff 175024 0 29467 0 0 0 20449 0 17401 0 242341 0 0 0 Barbara Clay 170922 0 60758 0 0 0 32556 0 6677 0 270913 0 0 0 Elise Gerich 204516 0 74217 0 0 0 29500 0 17589 0 325822 0 0 0 James Hedlund 267393 0 100242 0 0 0 22701 0 24405 0 414741 0 0 0 David Olive 243600 0 91620 0 0 0 29500 0 24405 0 389125 0 0 0 Jeffrey Moss 279125 0 77625 0 0 0 29500 0 17419 0 403669 0 0 0 Nick Tomasso 173040 0 32137 0 0 0 27259 0 17207 0 249643 0 0 0 Daniel Halloran 210415 0 93289 0 0 0 29500 0 24657 0 357861 0 0 0 Denise Michel 224936 0 61044 0 0 0 33000 0 24657 0 343637 0 0 0 Margaret Milam 204261 0 40283 0 0 0 29227 0 24403 0 298174 0 0 0 Amy Stathos 231709 0 103858 0 0 0 29500 0 9016 0 374083 0 0 0 James Trengrove 192272 0 39978 0 0 0 28613 0 24345 0 285208 0 0 0 Rod Beckstrom 461534 0 157950 0 0 0 33000 0 12066 0 664550 0 0 0 Michael Salazar 239384 0 29739 0 0 0 23563 0 12066 0 304752 0 0 0 SUPPLEMENTAL COMPENSATION INFORMATION AMOUNTS LISTED IN PART VII OF FORM 990 AND SCHEDULE J REPRESENT AMOUNTS FOR THE 2012 CALENDAR YEAR. SCHEDULE J, PART I, LINE 1A FIRST CLASS TRAVEL IN THE CASES WHERE FIRST CLASS TRAVEL WAS BOOKED, IT WAS IDENTIFIED AS THE LOWEST FARE AVAILABLE AT THE TIME THE TRAVEL WAS REQUIRED, WAS DUE TO A MEDICAL CONDITION, OR WAS PERMITTED UNDER ICANN'S TRAVEL POLICY WHERE THE SELECTION OF BUSINESS CLASS WAS ALLOWED, BUT WAS AUTOMATICALLY CHANGED TO FIRST CLASS BY THE AIRLINE ON A TWO-CLASS PLANE. THESE AMOUNTS WERE FOR BUSINESS PURPOSES AND WERE NOT REPORTED AS INCOME ON THE EMPLOYEE'S W-2. SCHEDULE J, PART I, LINE 7 REGARDING BONUSES: THE OVERARCHING OBJECTIVE OF ICANN'S REMUNERATION FRAMEWORK IS TO ENSURE REMUNERATION PROVIDED IS COMPETITIVE GLOBALLY AND THAT IT PROVIDES STAFF WITH APPROPRIATE MOTIVATION FOR HIGH PERFORMANCE TOWARDS AGREED OBJECTIVES. THIS FRAMEWORK IS DESCRIBED IN DETAIL WITHIN THE DOCUMENT ENTITLED ICANN REMUNERATION. http://www.icann.org/en/about/financials/remuneration-practices-fy14-01jul 13-en.pdf SCHEDULE J, PART II ICANN'S OVERALL COMPENSATION PHILOSOPHY IS TO TARGET COMPENSATION BETWEEN THE 50TH AND 75TH PERCENTILE OF THE MARKET, TO ATTRACT AND RETAIN THE RIGHT STAFF. THE DRIVING ELEMENT OF THIS PHILOSOPHY IS THAT ICANN'S COMPENSATION IS MARKET-BASED. ICANN HAS EMPLOYEES IN MANY DIFFERENT PARTS OF THE WORLD, AND STRIVES TO APPLY THIS PHILOSOPHY LOCALLY. EMPLOYMENT MARKETS AROUND THE WORLD ARE QUITE DIFFERENT, AND ALSO BRING DIFFERENT TAX, BENEFIT, AND OTHER LOCAL CONDITIONS TO BEAR. NOTABLY, BELGIUM, WHERE ICANN HAS NINE EMPLOYEES AS OF DECEMBER 31, 2012, REPRESENTS QUITE A DIFFERENT EMPLOYMENT MARKET DUE TO DIFFERENCES IN TAX RATES AND OTHER FACTORS SUCH AS MEDICAL PROGRAMS. IN ADDITION, EXCHANGE RATE FLUCTUATIONS ALSO AFFECT THE U.S. DOLLAR EQUIVALENCE OF THE BELGIUM STAFF. MELBOURNE IT BRUCE TONKIN - DIRECTOR 601918 SEE PART V false BUSINESS TRANSACTIONS WITH RELATED PERSONS SCHEDULE L, PART IV 1. DR. BRUCE TONKIN IS A VOTING MEMBER OF THE BOARD OF DIRECTORS. DR. TONKIN IS ALSO CHIEF STRATEGY OFFICER OF MELBOURNE IT, AN ICANN ACCREDITED REGISTRAR. REVENUE FROM MELBOURNE IT AMOUNTED TO $601,918 AND $732,408 FOR THE YEARS ENDED JUNE 30, 2013 AND JUNE 30, 2012, RESPECTIVELY, UNDER THE FEE STRUCTURE OF THE STANDARD REGISTRAR ACCREDITATION AGREEMENT. TO AVOID ANY CONFLICT OF INTEREST BETWEEN ICANN AND MELBOURNE IT, DR. TONKIN ABSTAINS FROM VOTING ON ALL MATTERS HE IDENTIFIES AS POTENTIAL CONFLICTS OF INTEREST WHICH COME BEFORE THE BOARD. IN ADDITION TO THE SPECIFIC DISCLOSURE ABOVE, ICANN MAY ENTER INTO OR CONSIDER PARTICIPATION IN SMALL ARM'S LENGTH TRANSACTIONS BETWEEN ICANN AND CERTAIN TAXABLE ORGANIZATIONS WITH WHICH CERTAIN ICANN DIRECTORS OR OFFICERS (OR MEMBERS OF THEIR FAMILIES) MAY HAVE AN AFFILIATION. UNDER ICANN'S CONFLICTS OF INTEREST POLICY, ALL OFFICERS AND DIRECTORS ARE REQUIRED TO DISCLOSE ANY POTENTIAL CONFLICTS OF INTEREST BEFORE ENTERING INTO DISCUSSION ON SUCH MATTERS. IN ADDITION, THE BOARD COMMITTEE RESPONSIBLE FOR CONFLICTS OF INTEREST REVIEWS ALL BOARD MEMBER CONFLICTS OF INTEREST STATEMENTS. SEE: HTTP://WWW.ICANN.ORG/EN/GROUPS/BOARD/DOCUMENTS/SOIS ORGANIZATION'S MISSION FORM 990, PART I, LINE 1 AND PART III, LINE I THE MISSION OF THE INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS ("ICANN") IS TO PROMOTE THE GLOBAL PUBLIC INTEREST IN THE OPERATIONAL STABILITY OF THE INTERNET BY: (I) COORDINATING THE ASSIGNMENT OF INTERNET TECHNICAL PARAMETERS AS NEEDED TO MAINTAIN UNIVERSAL CONNECTIVITY ON THE INTERNET; (II) PERFORMING AND OVERSEEING FUNCTIONS RELATED TO THE COORDINATION OF THE INTERNET PROTOCOL ("IP") ADDRESS SPACE; (III) PERFORMING AND OVERSEEING FUNCTIONS RELATED TO THE COORDINATION OF THE INTERNET DOMAIN NAME SYSTEM ("DNS"), INCLUDING THE DEVELOPMENT OF POLICIES FOR DETERMINING THE CIRCUMSTANCES UNDER WHICH NEW TOP-LEVEL DOMAINS ARE ADDED TO THE DNS ROOT SYSTEM; (IV) OVERSEEING OPERATION OF THE AUTHORITATIVE INTERNET DNS ROOT SERVER SYSTEM; AND (V) ENGAGING IN ANY OTHER RELATED LAWFUL ACTIVITY IN FURTHERANCE OF ITEMS (I) THROUGH (IV). SEE ADDITIONAL INFORMATION ABOUT ICANN'S PROGRAMS AND ACTIVITIES ON THE ICANN WEBSITE AND IN THE ICANN ANNUAL REPORT POSTED AT ICANN.ORG. GOVERNING BODY FORM 990, PART I, LINE 3 AND PART VI, LINE 1A IN ADDITION TO THE VOTING MEMBERS OF THE BOARD OF DIRECTORS, ICANN'S BYLAWS AS OF JUNE 30, 2013 ALLOWED FOR FIVE (5) NON-VOTING LIAISONS. THE NON-VOTING LIAISONS ARE ENTITLED TO ATTEND BOARD MEETINGS, PARTICIPATE IN BOARD DISCUSSIONS AND DELIBERATIONS, AND HAVE ACCESS (UNDER CONDITIONS ESTABLISHED BY THE BOARD) TO MATERIALS PROVIDED TO DIRECTORS FOR USE IN BOARD DISCUSSIONS, DELIBERATIONS AND MEETINGS. THE FOLLOWING INDIVIDUALS SERVED AS NON-VOTING LIAISONS DURING THE FISCAL YEAR ENDING JUNE 30, 2013: 1. FRANCISCO DA SILVA (TLG,OCT 2012 - 2013) 2. HEATHER DRYDEN (GAC, JUNE 2010 - 2015) 3. RAM MOHAN (SSAC, 2009 - 2013) 4. THOMAS NARTEN (IETF, JULY 2005 - JULY 2013) 5. THOMAS ROESSLER (TLG, OCT 2011 - OCT 2012) 6. SUZANNE WOOLF (RSSAC, 2004 - 2013) NEW GTLD PROGRAM COMMITTEE IN ORDER TO HAVE EFFICIENT MEETINGS AND TAKE APPROPRIATE ACTIONS WITH RESPECT TO THE NEW GTLD PROGRAM FOR THE CURRENT ROUND OF THE PROGRAM AND AS RELATED TO THE APPLICANT GUIDEBOOK, THE BOARD CREATED THE "NEW GTLD PROGRAM COMMITTEE" IN ACCORDANCE WITH ARTICLE XII OF THE BYLAWS AND HAS DELEGATED DECISION MAKING AUTHORITY TO THE COMMITTEE AS IT RELATES TO THE NEW GTLD PROGRAM FOR THE CURRENT ROUND OF THE PROGRAM WHICH COMMENCED IN JANUARY 2012 AND FOR THE RELATED APPLICANT GUIDEBOOK THAT APPLIES TO THIS CURRENT ROUND. ESTABLISHING THIS NEW COMMITTEE WITHOUT CONFLICTED MEMBERS, AND DELEGATING TO IT DECISION MAKING AUTHORITY, PROVIDES SOME DISTINCT ADVANTAGES. FIRST, IT HELPS ELIMINATE ANY UNCERTAINTY FOR CONFLICTED BOARD MEMBERS WITH RESPECT TO ATTENDANCE AT BOARD MEETINGS AND WORKSHOPS SINCE THE NEW GTLD PROGRAM TOPICS CAN BE DEALT WITH AT THE COMMITTEE LEVEL. SECOND, IT ALLOWS FOR ACTIONS TO BE TAKEN WITHOUT A MEETING BY THE COMMITTEE. ACTIONS WITHOUT A MEETING CANNOT BE TAKEN UNLESS DONE VIA ELECTRONIC SUBMISSION BY UNANIMOUS CONSENT; SUCH UNANIMOUS CONSENT CANNOT BE ACHIEVED IF EVEN JUST ONE BOARD MEMBER IS CONFLICTED. THIRD, IT PROVIDES THE COMMUNITY WITH A TRANSPARENT VIEW INTO THE BOARD'S COMMITMENT TO DEALING WITH ACTUAL, POTENTIAL OR PERCEIVED CONFLICTS. MEMBERS AS OF JUNE 30, 2013 CHERINE CHALABY (CHAIR) FADI CHEHAD (MEMBER) CHRIS DISSPAIN (MEMBER) BILL GRAHAM (MEMBER) OLGA MADRUGA-FORTI (MEMBER) ERIKA MANN (MEMBER) GONZALO NAVARRO (MEMBER) RAY PLZAK (MEMBER) GEORGE SADOWSKY (MEMBER) MIKE SILBER (MEMBER) JUDITH VAZQUEZ (MEMBER) KUO-WEI WU (MEMBER) HEATHER DRYDEN (NON VOTING LIAISON) FRANCISCO DA SILVA (NON VOTING LIAISON) PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 2 AS OF JUNE 30, 2013, THE INTERNET NAMESPACE CONSISTED OF 22 GENERIC TOP LEVEL DOMAINS (GTLDS) AND OVER 250 COUNTRY CODE TOP LEVEL DOMAINS (CCTLDS) OPERATING ON VARIOUS MODELS. EACH GTLD HAS A DESIGNATED "REGISTRY OPERATOR" AND, IN MOST CASES, A REGISTRY AGREEMENT BETWEEN THE OPERATOR (OR SPONSOR) AND ICANN. THE REGISTRY OPERATOR IS RESPONSIBLE FOR THE TECHNICAL OPERATION OF THE GTLD, INCLUDING ALL OF THE NAMES REGISTERED IN THAT TLD. OVER 1,000 ICANN ACCREDITED REGISTRARS INTERACT WITH REGISTRANTS (AND OTHERS) TO PERFORM DOMAIN NAME REGISTRATION AND OTHER RELATED SERVICES FOR NEW GTLDS. THE NEW GTLD PROGRAM HAS PROVIDED A MEANS FOR PROSPECTIVE REGISTRY OPERATORS TO APPLY FOR NEW GTLDS, AND CREATE NEW OPTIONS FOR CONSUMERS. THE PROGRAM OPENED ITS FIRST APPLICATION ROUND IN JANUARY 2012 AND ICANN RECEIVED 1930 APPLICATIONS. WHILE SOME OF THOSE APPLICATIONS HAVE BEEN WITHDRAWN, ICANN CONTINUES TO PROCESS THE REMAINING APPLICATIONS. PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4 ICANN IS A MULTI-STAKEHOLDER ORGANIZATION THAT COORDINATES THE INTERNET DOMAIN NAME SYSTEM (DNS) AND ADDRESSING FOR THE BENEFIT OF INTERNET USERS WORLDWIDE, ENABLING A SINGLE, INTEROPERABLE INTERNET. AS OF JUNE 30, 2013, ICANN WAS RESPONSIBLE FOR THE GLOBAL TECHNICAL COORDINATION OF THE DNS. AT THAT TIME THERE WERE OVER 240 MILLION INTERNET DOMAIN NAMES, INCLUDING APPROXIMATELY 133 MILLION INTERNET DOMAIN NAMES FOUND IN GENERIC TOP-LEVEL DOMAINS, MOST OF WHICH ARE GOVERNED BY ICANN'S COMMUNITY-DEVELOPED POLICIES. SEE ADDITIONAL INFORMATION ABOUT ICANN'S PROGRAMS AND ACTIVITIES ON THE ICANN WEBSITE AND IN THE ICANN ANNUAL REPORT POSTED AT ICANN.ORG. NEW GTLD PRIORITIZATION DRAW FORM 990, PART IV, LINE 19 THE PRIORITIZATION DRAW WAS HELD ON DECEMBER 17, 2012 IN LOS ANGELES TO ASSIGN PRIORITY NUMBERS TO ALL NEW GTLD APPLICATIONS. EACH APPLICATION WAS ASSIGNED A RANDOMLY-DRAWN PRIORITY NUMBER. THESE PRIORITY NUMBERS WERE USED TO DETERMINE THE ORDER IN WHICH INITIAL EVALUATION RESULTS ARE RELEASED. ONLY THOSE APPLICANTS WHO PURCHASED A TICKET WERE ABLE TO PARTICIPATE IN THE DRAW. IN FISCAL YEAR 2014, 100% OF THE PROCEEDS WERE DONATED TO ELIGIBLE CALIFORNIA CHARITABLE ORGANIZATIONS IN ACCORDANCE WITH CALIFORNIA LEGAL REQUIREMENTS. ICANN SENT $58,866.67 EACH TO THE FOLLOWING CHARITIES: WIKIMEDIA FOUNDATION INVENEO KIVA MICROFUNDS CHANGES TO GOVERNING DOCUMENTS RELATED TO FISCAL YEAR 2013 FORM 990, PART VI, LINE 4 ON DECEMBER 20, 2012, THE BOARD APPROVED BYLAWS THAT CHANGED TERM ENDING DATES OF THOSE BOARD MEMBERS SELECTED BY ICANNS SUPPORTING ORGANIZATIONS AND THE AT-LARGE COMMUNITY. ON APRIL 11, 2013, THE BOARD APPROVED BYLAWS REVISIONS AS THOSE PROVISIONS RELATE TO ONE OF ICANNS ADVISORY COMMITIES, THE ROOT SERVER SYSTEM ADVISORY COMMITTEE. BODIES THAT APPOINT MEMBERS OF ICANN'S GOVERNING BODY FORM 990, PART VI, LINE 7A THE NOMINATING COMMITTEE (NOMCOM) IS RESPONSIBLE FOR THE SELECTION OF EIGHT ICANN VOTING BOARD MEMBERS AND FOR OTHER SELECTIONS AS ARE SET FORTH IN THE BYLAWS. (SEE BYLAWS ARTICLE VII, SECTION 1.) THE NOMCOM IS CHARGED WITH POPULATING A PORTION OF THE ICANN BOARD AS NOTED ABOVE, AS WELL AS THE AT-LARGE ADVISORY COMMITTEE ("ALAC"), THE COUNTRY CODE NAMES SUPPORTING ORGANIZATION ("CCNSO") COUNCIL AND THE GENERIC NAMES SUPPORTING ORGANIZATION ("GNSO") COUNCIL. THE NOMCOM COMPLEMENTS THE OTHER MEANS FOR FILLING A PORTION OF KEY ICANN LEADERSHIP POSITIONS ACHIEVED WITHIN THE SUPPORTING ORGANIZATIONS AND ADVISORY COMMITTEES. THE BYLAWS ALSO STATE THAT THE NOMCOM SHALL ADOPT SUCH OPERATING PROCEDURES AS IT DEEMS NECESSARY, WHICH SHALL BE PUBLISHED ON THE ICANN WEBSITE. THE NOMCOM IS DESIGNED TO FUNCTION INDEPENDENTLY FROM THE BOARD, THE SUPPORTING ORGANIZATIONS, AND ADVISORY COMMITTEES. MEMBERS OF THE NOMCOM CONTRIBUTE BOTH THEIR UNDERSTANDING OF THE BROAD INTERESTS OF THE INTERNET AS A WHOLE AND THEIR KNOWLEDGE AND EXPERIENCE OF THE CONCERNS AND INTERESTS OF THE INTERNET STAKEHOLDERS THAT HAVE APPOINTED THEM. THE CHALLENGE FOR THE NOMCOM IS TO INTEGRATE THESE PERSPECTIVES AND DERIVE CONSENSUS IN ITS SELECTIONS. ALTHOUGH APPOINTED BY SUPPORTING ORGANIZATIONS AND OTHER ICANN BODIES, INDIVIDUAL NOMCOM MEMBERS ARE NOT ACCOUNTABLE TO THEIR APPOINTING CONSTITUENCIES BUT RATHER TO ICANN AS A WHOLE. NOMCOM MEMBERS ARE ACCOUNTABLE FOR ADHERENCE TO THE BYLAWS AND FOR COMPLIANCE WITH THE RULES AND PROCEDURES ESTABLISHED BY THE NOMCOM. LOCAL CHAPTERS, BRANCHES AND AFFILIATES FORM 990, PART VI, LINE 10A AND 10B DURING FISCAL 2013, ICANN HAD OFFICES OUTSIDE OF THE UNITED STATES IN BRUSSELS, BELGIUM, AND SYDNEY, AUSTRALIA (THE SYDNEY, AUSTRALIA OFFICE WAS CLOSED IN FEBRUARY 2013), WHICH PROVIDED OPERATIONAL SUPPORT TO THEIR RESPECTIVE GEOGRAPHICAL REGIONS. IN APRIL 2013 ICANN ENTERED INTO A LEASE FOR OFFICE SPACE IN SINGAPORE, SINGAPORE, BUT OPERATIONS IN THE OFFICE DID NOT BEGIN UNTIL AFTER THE END OF THE FISCAL YEAR. FORM 990 REVIEW PROCESS FORM 990, PART VI, LINE 11B A COPY OF THE FORM 990 IS PROVIDED TO ICANN'S BOARD MEMBERS BEFORE IT IS FILED. THE PROCESS BY WHICH THE FORM 990 IS PREPARED, REVIEWED AND RECEIVED IS AS FOLLOWS: 1. ICANN ENGAGES AN OUTSIDE TAX PREPARER TO ASSIST IN THE PREPARATION OF ITS FORM 990. 2. ICANN'S CHIEF FINANCIAL OFFICER (CFO), AND OFFICE OF THE GENERAL COUNSEL REVIEW THE FORM 990, AND THE CFO SIGNS OFF FOR APPROVAL. 3. THE FORM 990 IS PROVIDED TO THE ICANN BOARD MEMBERS. CONFLICTS OF INTEREST POLICY FORM 990, PART VI, LINE 12C ICANN HAS WRITTEN CONFLICTS OF INTEREST POLICIES, WHICH ARE APPLICABLE TO ALL BOARD MEMBERS AND STAFF MEMBERS. THE OFFICE OF THE GENERAL COUNSEL MONITORS THE POLICIES WITH OVERSIGHT BY THE BOARD GOVERNANCE COMMITTEE AS THEY RELATE TO THE BOARD. A CONFLICTS OF INTEREST DISCLOSURE STATEMENT IS COMPLETED ANNUALLY AND SIGNED BY EACH BOARD MEMBER, OFFICER AND KEY EMPLOYEE (WHICH WAS EXTENDED IN FISCAL YEAR 2013 TO ALL STAFF MEMBERS AND RELEVANT CONTRACTORS). THE STAFF MEMBER AND CONTRACTOR DISCLOSURE STATEMENTS ARE REVIEWED BY THE HEAD OF HUMAN RESOURCES AND DISCUSSED WITH GENERAL COUNSEL'S OFFICE IF ANY ISSUES ARISE; THE BOARD LEVEL DISCLOSURE STATEMENTS ARE REVIEWED BY THE OFFICE OF GENERAL COUNSEL AND THE BOARD GOVERNANCE COMMITTEE. THE BOARD MEMBER, OFFICER AND KEY EMPLOYEE CONFLICTS OF INTEREST POLICY CAN BE FOUND AT: http://www.icann.org/EN/GROUPS/BOARD/GOVERNANCE/COI. THIS POLICY DESCRIBES THE DUTY TO DISCLOSE, THE PROCEDURES FOR ADDRESSING CONFLICTS OF INTEREST, THE DUTY TO ABSTAIN, HOW VIOLATIONS OF THE CONFLICTS OF INTEREST POLICY WILL BE HANDLED, HOW TO HANDLE A BOARD MEMBER WHO RECEIVES COMPENSATION, THE ANNUAL STATEMENT PROCESS BY WHICH ALL COVERED PERSONS SIGN ANNUALLY THEIR AFFIRMATION OF THE POLICY AND DISCLOSE THEIR ACTUAL OR POTENTIAL CONFLICTS, AND THE REQUIREMENT AND NATURE OF PERIODIC REVIEWS. A SUMMARY OF BOARD MEMBER AND OFFICER DISCLOSURE STATEMENTS ARE POSTED ON THE WEBSITE AT: HTTP://WWW.ICANN.ORG/EN/GROUPS/BOARD/DOCUMENTS/SOIS RETENTION AND DESTRUCTION POLICY FORM 990, PART VI, LINE 14 ICANN MAINTAINS AN INTERNAL DOCUMENT RETENTION AND DESTRUCTION POLICY AND HISTORICALLY HAS FOLLOWED BEST INDUSTRY PRACTICES FOR RETENTION AND DESTRUCTION. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, LINES 15A AND 15B ICANN FOLLOWS PRINCIPLES OF ACCOUNTABILITY AND TRANSPARENCY AND DESCRIBES ITS REMUNERATION PLANS AND PRACTICES, WHICH ARE CONTINUALLY UPDATED. THE MOST CURRENT VERSION OF ICANN'S COMPENSATION PRACTICES REPORT IS POSTED AT: http://www.icann.org/en/about/financials/remuneration-practices-fy14-01jul 13-en.pdf THE PROCESS FOR DETERMINING COMPENSATION INCLUDING SURVEYS OF COMPARABLE POSITIONS AND OTHER MARKET STUDIES IS DESCRIBED IN THIS COMPENSATION PRACTICES REPORT. EXECUTIVE COMPENSATION IS DISCLOSED AS WELL. SALARIES OF ALL OFFICERS ARE REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS IN RESPONSE TO RECOMMENDATIONS BY THE BOARD COMPENSATION COMMITTEE. MINUTES OF THESE MEETINGS ARE MAINTAINED BY THE BOARD SECRETARY AS PART OF THE CORPORATE SECRETARIAT FUNCTION. EACH YEAR THE APPOINTMENT FOR EACH OFFICER IS CONFIRMED BY THE BOARD OF DIRECTORS AT THE ANNUAL GENERAL MEETING. DATA RELATED TO OFFICER COMPENSATION WAS LAST COMPILED DURING 2013. AVAILABILITY OF 990 FORM 990, PART VI, LINE 18 ICANN POSTS ITS FORM 990 ON ITS WEBSITE. THE PRIOR YEAR POSTING IS LOCATED AT: http://www.icann.org/en/about/financials/tax/us/fy-2012-form-990-en.pdf IN ADDITION, THE FORM 990 IS POSTED ON THE WWW.GUIDESTAR.ORG WEBSITE. FINALLY, HARD COPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST. REQUESTS SHOULD BE SUBMITTED TO ICANN'S CFO BY EMAIL TO XAVIER.CALVEZ@ICANN.ORG, OR BY PHONE AT +1.310.301.5838. ICANN POSTS THE ORIGINAL FORM 1023 (APPLICATION FOR TAX-EXEMPT STATUS) ON ITS WEBSITE. THE ORIGINAL FORM 1023 POST IS LOCATED AT: http://archive.icann.org/en/financials/tax/us/form1023-1.htm AVAILABILITY OF GOVERNING DOCS, CONFLICTS OF INTEREST, AND FINANCIAL STMTS FORM 990, PART VI, LINE 19 IN ACCORDANCE WITH ITS CORPORATE BYLAWS (SEE: HTTP://WWW.ICANN.ORG/EN/ABOUT/GOVERNANCE/BYLAWS) AND THE AFFIRMATION OF COMMITMENTS WITH THE UNITED STATES DEPARTMENT OF COMMERCE, ICANN IS COMMITTED TO ACCOUNTABILITY AND TRANSPARENCY PRINCIPLES. THIS INCLUDES PROVIDING EXTENSIVE ACCESS TO THE PUBLIC THROUGH THE ICANN WEBSITE OF ITS GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY, AND FINANCIAL STATEMENTS. SEE: http://www.icann.org/en/about/governance OFFICER/DIRECTOR SERVICE DATES FORM 990, PART VII IN PART VII, A DATE FOLLOWING AN OFFICER/DIRECTOR'S NAME INDICATES THE DATE ON WHICH THE OFFICER/DIRECTOR'S SERVICES ENDED. IF NO DATE IS INDICATED, THAT OFFICER/DIRECTOR WAS ACTIVE AS OF JUNE 30, 2013. REGARDING ROD BECKSTROM, HIS COMPENSATION IS BASED ON THE TAX YEAR 2012. HIS AVERAGE HOURS PER WEEK IS ZERO (0) DUE TO THE CONCLUSION OF HIS CONTRACT TERM PRIOR TO THE FISCAL YEAR ENDING JUNE 30, 2013. FEES FOR SERVICES - OTHER PART IX, LINE 11G New gTLD Background Screening 2,011,855 New gTLD DNS Stability Evaluation 1,328,285 New gTLD Financial and Technical Evaluation 43,743,726 New gTLD Geographic TLD Evaluation 2,352,896 New gTLD Objection Evaluations 3,331,875 New gTLD Pre-delegation Testing 650,329 New gTLD Program Administration 1,485,199 New gTLD Quality Control 9,665,285 New gTLD Registry Services Evaluation 1,154,607 New gTLD String Similarity Evaluation 6,005,231 Recruiting Services 878,365 Temporary Personnel 1,310,125 Translation Services 902,163 Consulting Services 7,438,743 Interpretation 771,203 Communications 615,295 Strategy Visualization Services 512,983 ---------- Grand Total 84,158,165 ========== RISK COSTS - GTLD PART IX, LINE 24A RISK COSTS ARE EXPENSES THAT RELATE TO ANY CONTINGENCIES THAT MAY BE INCURRED BY ICANN AT ANY TIME THROUGHOUT OR AFTER THE NEW GTLD APPLICATION PROCESS. APPROXIMATELY ONE THIRD OF TOTAL FEES CHARGED TO APPLICANTS IN RELATION TO THE NEW GTLD PROGRAM ARE IN ANTICIPATION OF THESE COSTS. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 9 FX GAIN/(LOSS) $26,916 ROUNDING $ 2 ------- TOTAL $26,918