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INCOME LINE 12, 2007 = $499 MISC. INCOME RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false true 300154 false false 300154 false false Lobbying Expenditures Schedule C Part II-B THE ORGANIZATION UTILIZED THE SERVICES OF TWO GOVERNMENT AFFAIRS FIRMS DURING THE YEAR ENDED JUNE 30, 2011. AS PART OF THE SERVICES PROVIDED, THE GOVERNMENT AFFAIRS FIRMS INCURRED $300,154 OF LOBBYING EXPENDITURES RELATED TO LOBBYING WITH FEDERAL LEGISLATORS. A PORTION OF JAMES HEDLUND'S TIME WAS SPENT ON LOBBYING EFFORTS AS REPORTED ON FORM LD1. AMOUNTS REPORTED ON LD1 ARE NOT INCLUDED ON SCHEDULE C PART II-B, BUT ARE INCLUDED ON FORM 990, PART IX, LINE 5. 1394481 393120 1001361 5911170 3678169 2233001 416246 0 416246 3650608 0 0 72019342 61295249 10724093 3771872 3771872 14495965 75426000 3771872 3771872 71654128 365214 365214 72019342 59984000 -946035 -946035 60930035 365214 365214 61295249 ASC 740-10 Footnote Schedule D, Part X, Line 2 ICANN, under the provisions of ASC 740, Income Taxes, had no uncertain tax positions requiring accrual as of June 30, 2011 and 2010. RECON OF EXPENSES PER AUDITED FINANCIAL STATEMENTS W/ EXP PER RETURN SCHEDULE D, PART XIII, LINE 2D UNREALIZED GAIN/LOSS ON FOREIGN EXCHANGE $(946,071) ROUNDING: 36 ---------- TOTAL $(946,035) true Central America and the Caribbean 0 Program Services SEE FORM 990 PART III 24556 East Asia and the Pacific 1 41 Program Services SEE FORM 990 PART III 4291777 Europe (Including Iceland and Greenland) 1 39 Program Services SEE FORM 990 PART III 3707869 Middle East and North Africa 0 Program Services SEE FORM 990 PART III 324651 North America 0 Program Services SEE FORM 990 PART III 1027984 Russia and the Newly Independent States 0 Program Services SEE FORM 990 PART III 26487 South America 20 Program Services SEE FORM 990 PART III 2390562 South Asia 0 Program Services SEE FORM 990 PART III 10813 Sub-Saharan Africa 0 Program Services SEE FORM 990 PART III 225530 2 100 2 100 12030229 12030228 South America CCTLD WORKSHOP SPONSORSHIP 11421 CHECK Europe/Iceland/Greenland AMS SPONSORSHIP 21463 CHECK Europe/Iceland/Greenland MENOG 7 SPONSORSHIP 10000 CHECK Europe/Iceland/Greenland IGF SECRETARIAT SPONSORSHIP 88125 CHECK 0 4 FELLOWSHIP PROGRAM Europe/Iceland/Greenland 4 2500 WIRE/CASH 18052 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM East Asia/Pacific 11 5500 WIRE/CASH 49120 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM Middle East/North Africa 8 4500 WIRE/CASH 30598 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM Cent. America/Caribbean 5 2500 WIRE/CASH 15158 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM South America 15 8500 WIRE/CASH 54110 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM South Asia 8 5000 WIRE/CASH 37115 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM Sub-Saharan Africa 10 4500 WIRE/CASH 57664 AIRFARE/LODG ACTUAL EXP. FELLOWSHIP PROGRAM Russia 4 2000 WIRE/CASH 19798 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 WHICH IS AWARDED TO ENABLE INDIVIDUALS FROM STAKEHOLDER GROUPS AROUND THE WORLD TO ATTEND ICANN 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. ICANN STAFF AND THE SELECTION COMMITTEE HAVE MAINTAINED A "3X" RULE FOR RECEIVING THIS GRANT OF SUPPORT. FOR EACH INTERNATIONAL 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 INTERNATIONAL MEETING, A LIST OF FELLOWS WHO ATTENDED THE MEETING IS POSTED ON THE ICANN WEBSITE. TRAVEL AND HOTEL COSTS ASSOCIATED FOR FELLOWS PRE-SELECTED TO ATTEND THE FELLOWSHIP MEETING ARE BOOKED AND PAID FOR DIRECTLY BY ICANN. ALL FELLOWS ARE ELIGIBLE TO RECEIVE A FLAT STIPEND NOT TO EXCEED US $500.00. STIPENDS ARE PROVIDED TO FELLOWS BY WIRE TRANSFER, AND ARE PAID TO EACH FELLOW SUBSEQUENT TO THE MEETING AFTER THE FELLOW HAS DEMONSTRATED COMPLETION OF THE FELLOWSHIP PROGRAM. DURING THE TWELVE MONTHS ENDED JUNE 30, 2011, ICANN PAID $316,615 TO ALLOW SEVENTY-THREE FELLOWSHIP PARTICIPANTS TO ATTEND THREE ICANN 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 II, STATEMENT OF FUNCTIONAL EXPENSES. FOR OTHER CONTRIBUTIONS, ICANN GLOBAL PARTNERSHIPS STAFF DEVELOP REQUESTS BASED UPON THE ICANN STRATEGIC PLAN AND 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 THE INTERNATIONAL OFFICES INCLUDED ON PART I LINE 3(B) OF SCHEDULE F ARE THE SYDNEY, AUSTRALIA AND BRUSSELS, BELGIUM ICANN OFFICES. THE NUMBER OF EMPLOYEES IN EACH REGION SHOWN IN PART I LINE 3(C) OF SCHEDULE F INCLUDES THOSE STAFF OR CONTRACTED STAFF WORKING IN EACH REGION AND THE NUMBER OF ICANN STAFF ATTENDING CARTEGENA (82), SAN FRANCISCO (128), AND SINGAPORE (117) INTERNATIONAL MEETINGS DURING FISCAL YEAR 2011. IN ADDITION, AN ESTIMATE OF THOSE OFFICERS AND OTHER EXECUTIVES WHO VISITED EACH REGION WAS INCLUDED. THE TOTAL EXPENDITURES BY REGION SHOWN IN PART I LINE 3(F) OF SCHEDULE F INCLUDES: A. THE AMOUNTS PAID (FOR STAFF COMPENSATION, TRAVEL REIMBURSEMENT, AND OTHER STAFF AND VENDOR COSTS) FROM THE US ACCOUNTS PAYABLE DEPARTMENT IN INTERNATIONAL CURRENCIES APPLICABLE TO THE REGION; B. ALL COSTS ASSOCIATED WITH THE THREE ANNUAL INTERNATIONAL MEETINGS (I.E. CARTEGENA, SAN FRANCISCO, AND SINGAPORE FOR FISCAL YEAR 2011); C. AMOUNTS EXPENDED TO FUND THE SYDNEY, AUSTRALIA OFFICE AND PERSONNEL COSTS INCLUDING OFFICE EXPENSES, TRAVEL RELATED AND OTHER EXPENSES PAID BY THE US ACCOUNTS PAYABLE DEPARTMENT; AND D. ALL PAYMENTS MADE TO INTERNATIONAL BASED EMPLOYEES AND CONTRACTED STAFF THAT WERE PAID IN US DOLLARS. E. ESTIMATES OF TRAVEL COSTS ASSOCIATED WITH THOSE EXECUTIVES WHO TRAVEL FREQUENTLY WERE MADE AND THOSE ESTIMATED COSTS WERE ALLOCATED BY REGION. ESTIMATE WAS BASED ON ACTUAL BOOKED FLIGHTS EXCLUDING AMOUNTS OTHERWISE INCLUDED IN THE ACCOUNTING OF THE THREE INTERNATIONAL MEETINGS IN CARTEGENA, SAN FRANCISCO, AND SINGAPORE. F. NOTE THAT PROFESSIONAL SERVICE PROVIDERS AND OTHER COMPARABLE VENDORS ARE NOT TREATED AS AGENTS FOR THIS PURPOSE. STATEMENT OF ACTIVITIES OUTSIDE THE UNITED STATES SCHEDULE F, PART I, LINE 3 THE SUBTOTAL ON LINE 3A, COLUMN F REPRESENTS THE INDIVIDUAL EMPLOYEES. THE ACTIVITIES PER REGION IN LINE 3 REPRESENT THE NUMBER OF REGIONS TRAVELLED BY EACH PERSON, WHICH MAY BE MORE THAN ONE REGION PER PERSON. X X true true X X X X X X false false false false false false false true false Rod Beckstrom 750000 0 178328 0 0 0 16500 0 53402 0 998230 0 0 0 Doug Brent 159027 0 80809 0 38571 0 20321 0 49900 0 348628 0 0 0 John Jeffrey 258750 0 45323 0 0 0 0 0 34402 0 338475 0 0 0 Kurt Pritz 275625 0 48303 0 0 0 21167 0 54652 0 399747 0 0 0 Kevin Wilson 170000 0 19459 0 0 0 22000 0 42883 0 254342 0 0 0 Steve Antonoff 162728 0 18741 0 0 0 9073 0 36231 0 226773 0 0 0 Barbara Clay 165000 0 19540 0 12238 0 18068 0 33456 0 248302 0 0 0 David Conrad 100875 0 21876 0 37875 0 15029 0 37945 0 213600 0 0 0 Elise Gerich 118750 0 6494 0 29811 0 0 0 18278 0 173333 0 0 0 Daniel Halloran 185000 0 21923 0 0 0 16500 0 48919 0 272342 0 0 0 James Hedlund 229295 0 69688 0 0 0 6676 0 47545 0 353204 0 0 0 David Olive 197740 0 18449 0 0 0 22000 0 48671 0 286860 0 0 0 Amy Stathos 207648 0 25476 0 0 0 16500 0 36372 0 285996 0 0 0 Tina Dam 168333 0 30631 0 25801 0 16500 0 36054 0 277319 0 0 0 Elizabeth Gasster 203333 0 25116 0 0 0 22000 0 43955 0 294404 0 0 0 Margaret Milam 188460 0 23163 0 0 0 16500 0 51431 0 279554 0 0 0 ROMAN PELIKH 169701 0 20664 0 0 0 16500 0 48516 0 255381 0 0 0 Michael Salazar 213542 0 25213 0 0 0 16500 0 50589 0 305844 0 0 0 SUPPLEMENTAL COMPENSATION INFORMATION AMOUNTS LISTED IN PART VII OF FORM 990 AND SCHEDULE J REPRESENT AMOUNTS FOR THE 2010 CALENDAR YEAR. BENEFIT OPTIONS ARE THE SAME FOR ALL EMPLOYEES. SCHEDULE J, PART I, LINE 1A HOUSING ALLOWANCES WERE PROVIDED TO THE FOLLOWING OFFICERS AND KEY EMPLOYEE: DOUGLAS BRENT: $18,915 ELISE GERICH: $29,811 DAVID CONRAD: $24,700 THESE BENEFITS WERE TAXABLE AND INCLUDED IN THE W-2, BOX 5 AMOUNTS REPORTED IN FORM 990, PART VII. COMPANION TRAVEL: ICANN'S TRAVEL GUIDELINES DO NOT PERMIT SPOUSAL OR FAMILY TRAVEL. 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. THE STAFF THAT FLEW FIRST CLASS INCLUDE: AKRAM ATALLAH: 2 TRIPS: $8,847.85 ROD BECKSTROM: 3 TRIPS: TOTAL $5,987.23 BARBARA CLAY: 1 TRIP: $3,596.70 MICHELLE COTTON: 2 TRIPS: $11,162.80 WHITFIELD DIFFIE: 2 TRIPS: $13,694.58 SAMANTHA EISNER: 1 TRIPS: $1,022.70 JAMES HEDLUND: 1 TRIP: $2,142.70 JEFFREY MOSS: 1 TRIP: $11,749.40 KURT PRITZ: 1 TRIP: TOTAL $1,752.50 NICHOLAS TOMASSO: 1 TRIP: $10,201.10 LEO VEGODA: 1 TRIP: $4,403.90 THESE AMOUNTS WERE FOR BUSINESS PURPOSES AND WERE NOT REPORTED AS INCOME ON THE EMPLOYEES' W-2S. 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 "ICANN COMPENSATION - 2011" DOCUMENT, WHICH CAN BE FOUND AT THE FOLLOWING URL: HTTP://ICANN.ORG/EN/FINANCIALS/CURRENT-YEAR.HTM. 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 SEVERAL STAFF MEMBERS, REPRESENTS QUITE A DIFFERENT JOB MARKET THAN THE U.S. EMPLOYMENT MARKET. BASE COMPENSATION RATES IN BELGIUM ARE HIGHER DUE TO DIFFERENCES IN TAX RATES AND OTHER FACTORS SUCH AS NATIONAL MEDICAL PROGRAMS. IN ADDITION, EXCHANGE RATE FLUCTUATIONS ALSO AFFECT THE U.S. DOLLAR EQUIVALENCE OF THE BRUSSELS-BASED STAFF. THEREFORE, THE DOLLAR-DENOMINATED COMPENSATION OF ICANN'S BRUSSELS-BASED STAFF IS HIGHER THAN THEIR U.S.-BASED COUNTERPARTS. MELBOURNE IT BRUCE TONKIN - OFFICER 766416 SEE PART V false BUSINESS TRANSACTIONS WITH RELATED PERSONS SCHEDULE L, PART IV, LINE 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 $766,416 and $833,000 for the years ended June 30, 2011 and 2010, 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 DISCLOSURES 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/sois. ORGANIZATION'S MISSION FORM 990, PART I, LINE 1 AND PART III, LINE 1 THE MISSION OF THE INTERNET CORPORATION FOR ASSIGNED NAMES AND NUMBERS ("ICANN") IS TO COORDINATE, AT THE OVERALL LEVEL, THE GLOBAL INTERNET'S SYSTEMS OF UNIQUE IDENTIFIERS, AND IN PARTICULAR TO ENSURE THE STABLE AND SECURE OPERATION OF THE INTERNET'S UNIQUE IDENTIFIER SYSTEMS. 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, 2011 ALLOWED FOR FIVE 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 2011: 1. HEATHER DRYDEN 2. RAM MOHAN 3. THOMAS NARTEN 4. VANDA SCARTEZINI (12-2010) 5. REINHARD SCHOLL 6. JONNE SOININEN (12-2010) 7. SUZANNE WOOLF PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4 ICANN IS A GLOBAL 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. ICANN'S COMMUNITY-DEVELOPED POLICIES GOVERN OVER 180 MILLION DOMAIN NAMES, AND THE ALLOCATION OF ONE BILLION NETWORK ADDRESSES. CONNECTING BILLIONS OF COMPUTERS, PHONES, AND OTHER DEVICES ACROSS THE INTERNET, DNS CYBER-SECURITY IS A TOP PRIORITY. SEE ADDITIONAL INFORMATION ABOUT ICANN'S PROGRAMS AND ACTIVITIES ON THE ICANN WEBSITE AND IN THE ICANN ANNUAL REPORT POSTED AT ICANN.ORG. LOCAL CHAPTERS, BRANCHES AND AFFILIATES FORM 990, PART VI, LINE 10A AND 10B ICANN HAS OFFICES IN BRUSSELS, BELGIUM AND SYDNEY, AUSTRALIA, WHICH PROVIDE OPERATIONAL SUPPORT TO THEIR RESPECTIVE GEOGRAPHICAL REGIONS. 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 EXECUTIVE TEAM INCLUDING CONTROLLER, COO, GENERAL COUNSEL, AND CEO, REVIEWS THE FORM 990, AND SIGNS OFF FOR APPROVAL. 3. THE FORM 990 IS PROVIDED TO THE ICANN BOARD MEMBERS. 4. FOR THE 2008 FORM 990 FOR FYE 2009, THE ICANN BOARD RECEIVED TRAINING ON HOW TO RECEIVE/REVIEW THE FORM 990 DURING A TRAINING SEMINAR DEVELOPED BY ICANN'S EXTERNAL TAX ADVISORS. MOST BOARD MEMBERS THAT RECEIVED THIS TRAINING WERE ACTIVE BOARD MEMBERS AT THE TIME THE 2010 990 WAS COMPLETED. CONFLICTS OF INTEREST POLICY FORM 990, PART VI, LINE 12C ICANN HAS A WRITTEN CONFLICTS OF INTEREST POLICY, WHICH IS APPLICABLE TO THE BOARD, OFFICERS, AND KEY EMPLOYEES. THE OFFICE OF THE GENERAL COUNSEL MONITORS THE POLICY WITH OVERSIGHT BY THE BOARD GOVERNANCE COMMITTEE. A CONFLICTS OF INTEREST STATEMENT IS ANNUALLY COMPLETED AND SIGNED BY EACH BOARD MEMBER, OFFICER, AND KEY EMPLOYEE. THE DOCUMENTS ARE REVIEWED BY THE GENERAL COUNSEL, AND A REPORT OF ITS FINDINGS IS PREPARED. THE CONFLICTS OF INTEREST POLICY CAN BE FOUND HERE: HTTP://WWW.ICANN.ORG/EN/GROUPS/BOARD/SOIS/ THE 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. THE REPORTS OF BOARD MEMBER REPORTED STATEMENT OF INTEREST ARE POSTED ON THE WEBSITE. REPORTS CAN BE FOUND AT: HTTP://WWW.ICANN.ORG/EN/GROUPS/BOARD/SOIS/SUMMARY-SOI-21OCT11-EN.HTM 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 COMPENSATION PLANS AND PRACTICES, WHICH IS POSTED AT: http://www.vip.icann.org/en/about/financials/compensation-practices-01mar1 1-en THE PROCESS FOR DETERMINING COMPENSATION INCLUDING SURVEYS OF COMPARABLE POSITIONS AND OTHER MARKET STUDIES IS DESCRIBED IN THIS COMPENSATION REPORT. EXECUTIVE COMPENSATION IS DISCLOSED AS WELL. SALARIES OF ALL OFFICERS ARE REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS THROUGH THE COMPENSATION COMMITTEE. MINUTES OF THESE MEETINGS ARE MAINTAINED BY THE OFFICE OF THE GENERAL COUNSEL AS PART OF ITS CORPORATE SECRETARIAT FUNCTION. EACH YEAR THE APPOINTMENT FOR EACH OFFICER INCLUDING THE CHIEF EXECUTIVE OFFICER, THE CHIEF OPERATING OFFICER, THE GENERAL COUNSEL, THE SENIOR VICE PRESIDENT, STAKEHOLDER RELATIONS, AND THE CHIEF FINANCIAL OFFICER IS CONFIRMED BY THE BOARD OF DIRECTORS IN THE ANNUAL GENERAL MEETING. THE COMPENSATION STUDIES FOR MARKET COMPARABILITY CONDUCTED BY TOWERS WATSON IN 2009 FOR OFFICERS, INCLUDING THE CEO, WAS UPDATED IN 2011. THE COMPENSATION STUDIES FOR MARKET COMPARABILITY FOR ALL NON-OFFICER POSITIONS IN ICANN WAS UPDATED IN 2010 AND IS CURRENTLY BEING UPDATED BY TOWERS WATSON FOR 2012. AVAILABILITY OF 990 FORM 990, PART VI, LINE 18 ICANN POSTS ITS FORM 990 ON ITS WEBSITE. THE PRIOR YEAR POSTING IS HERE: http://www.icann.org/en/about/financials/tax/us/fy-2010-form-990-en. AFTER SUBMISSION TO THE IRS, THE 2010 FORM 990 IS POSTED HERE: http://www.icann.org/en/about/financials/fiscal-30jun11-en.htm . IN ADDITION, THE FORM 990 IS POSTED ON THE WWW.GUIDESTAR.ORG WEBSITE. FINALLY, HARD COPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST FROM THE CONTROLLER OF ICANN. EMAILS SHOULD BE SUBMITTED TO ICANN'S CFO BY EMAIL AT XAVIER.CALVEZ@ICANN.ORG, OR BY PHONE AT +1.310.823.5838. ICANN POSTS THE ORIGINAL FORM 1023 (APPLICATION FOR TAX-EXEMPT STATUS) ON ITS WEBSITE. THE ORIGINAL FORM 1023 POSTING IS HERE: HTTP://WWW.ICANN.ORG/EN/FINANCIALS/TAX/US/FORM1023-2.HTM. ICANN POSTS THE UPDATED IRS FAVORABLE DETERMINATION LETTER HERE: HTTP://WWW.ICANN.ORG/EN/FINANCIALS/TAX/US/IRS-FAVORABLE-DETERMINATION-LETT ER-19SEP08-EN.PDF. 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 WWW.ICANN.ORG.) OFFICER SERVICE DATES FORM 990, PART VII IN PART VII, A DATE FOLLOWING A DIRECTOR'S NAME INDICATES THE DATE ON WHICH THE DIRECTOR'S SERVICES ENDED. IF NO DATE IS INDICATED, THAT OFFICER WAS ACTIVE AS OF 6/30/11. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 5 UNREALIZED GAINS ON INVESTMENTS $3,771,872 UNREALIZED GAINS/LOSS ON FOREIGN EXCHANGE 946,071 ---------- TOTAL $4,717,943 CONTRIBUTIONS FORM 990, SCHEDULE B, LINE 16 NEUSTAR SPONSORS CCTLD'S AND GTLD'S. FORM 990, SCHEDULE B, LINE 42 VERISIGN SPONSORS THREE GTLD'S AND ONE CCTLD.