Re: [icann-eu] Re: HOWCANN YOU LOSE VERIFICATION 1.3 MIL?

[Jeff Williams <jwkckid1@ix.netcom.com>]

Eric and all,

Eric Dierker wrote:

> Mr. Roberts,
>
> I certainly meant nothing disparagingly about you or your fine work in
> office.  My meaning here was to suggest that ICANN needs to make more of an
> effort, in the future - starting yesterday, to attract real donations and not
> concentrate so much of it's efforts on cost recovery which it is not set up for
> obviously.  A plain reading of sec. 557, with attention to pages 22 - 33 pretty
> well
> lays out the idea of how we Americans want our non-profits to fund
> themselves.  But remember the idea of a non-profit is the other way around, it
> is so
> people can donate and get a tax incentive of some sort.  You know when you write
> a
> check at a church bakesale you can only write off that which is more than the
> cake is worth.  What we want are goodwill donations because people love our
> cause and it fits with foundation's idea of good - most of which are a result of
> long
> standing trusts written by ivy leaguers from the early part of this
> century and beyond (Mr. Gates being a noticeable exception, but certainly not
> Mr.
> Walmart{sorry forgot his name})

  Sam Walton.

> Keep in mind these people with the money
> to fund ICANN have a section to follow to give away the money as well or there
> areconsequences. Mr. Crispin has a >be good and be lonesome,< but that is not
> true in the charitable trust and non-profit realm, here it is be good and get
> the
> dough.

  Yes, and these are many times, as history on nonprofit have shown,
mutually exclusive activities.  But they don't have to be.  And from the
documented evidence it would seem that ICANN and the BoD in
particular, have a conflict here.

>
>
> Sincerely,
>
> Mike Roberts wrote:
>
> > At 14:05 -0700 5/3/01, Eric Dierker wrote:
> > >
> > >  > THIS HERE IS A CUT OUT OF ICANN'S OFFICIAL INDEPENDENT AUDIT AT;
> > >>  http://www.icann.org/financials/financial-report-fye-30jun00-letter.htm
> > >>
> > >>  <<    We were unable to obtain sufficient verifiable evidence supporting
> > >>  certain Country Code Top Level Domain (ccTLD) accounts receivable
> > >>  totaling $1,355,000 at June 30, 2000 or the related registry fee
> > >>  revenue, which is included in the change in net assets for the year then
> > >>  ended as described in note 2 to the financial statements; nor were we
> > >>  able to satisfy ourselves as to the adequacy of the allowance for
> > >>  doubtful accounts related to these receivables.
> > >>
> > >>      In our opinion, except for the effects of such adjustments, if any,
> > >>  as might have been determined to be necessary had we been able to
> > >>  examine verifiable supporting evidence regarding the accounts
> > >>  receivable, allowance for doubtful accounts and related registry fees,
> > >>  as discussed in the third paragraph of this report, the financial
> > >>  statements referred to in the first paragraph above present fairly, in
> > >>  all material respects, the financial position of Internet Corporation
> > >>  for Assigned Names and Numbers as of June 30, 2000 and the changes
> > >>      in its net assets and its cash flows for the year then ended in
> > >>  conformity with accounting principles generally accepted in the United
> > >>  States of America.>>
> > >>
> > >>  Now I just want one or two of you to march right into your tax office
> > >>  and explain that you do not have the documents for, oh say roughly, a
> > >>  third of your income so you ain't gonna pay on it because you should be
> > >>  a non-profit.  And these guys want to suspend voting rights for a
> > >>  constituency that has not paid 15 grand.
> >
> > The extract above should be read in conjunction with footnotes 2 and
> > 3 to the audit report which appear later in the same document and are
> > shown below.  The issue with the auditors was whether a receivable
> > entry was appropriate in the absence of a signed agreement with the
> > registry.  The outcome of the dialog among ICANN's auditors, Audit
> > Committee, accountants, and staff was that it would be used for last
> > year's report, but that the related procedures would be revised for
> > subsequent fiscal years, as they have been.
> >
> > Payments after June 30th of last year have reduced the receivable
> > from $1.355 million to approximately $500,000.
> >
> > None of this has anything to do with tax exempt status.
> >
> > - Mike
> >
> > ----------
> >
> > "(2) Summary of Significant Accounting Policies
> >
> > (c) Reporting
> >
> > The accompanying financial statements include certain ccTLD accounts
> > receivable and related registry fee  revenue. As of and for the year
> > ended June 30, 2000, accounts receivable and ccTLD registry fees have
> > been increased $1,355,000 by the inclusion of these receivables based
> > solely on oral agreements  between ICANN and the participating
> > countries. Such receivables and revenues are not supported by written
> > agreements nor has any allowance for doubtful accounts been
> > established relating to the receivables (see note 3).
> >
> > (3) Accounts Receivable
> >
> >             Accounts receivable totaling $2,552,000 at June 30, 2000
> > includes amounts receivable from ccTLDs, gTLDs and IP address
> > registries of $1,355,000, $769,000 and $428,000, respectively, for
> > various registry and accreditation fees. Receivables from ccTLDs at
> > June 30, 2000 include amounts receivable from the following countries:
> >
> >                               Germany
> >
> > $ 483,000
> >                               United Kingdom
> >
> > 249,700
> >                               Argentina
> >
> > 49,400
> >                               Denmark
> >
> > 48,300
> >                               Republic of Korea
> >
> > 46,000
> >                               Australia
> >
> > 40,100
> >                               Switzerland
> >
> > 35,400
> >                               Italy
> >
> > 32,400
> >                               Netherlands
> >
> > 31,600
> >                               Canada
> >
> > 23,200
> >                               Other countries
> >
> > 315,900
> >
> >
> > $ 1,355,000"

Regards,

--
Jeffrey A. Williams
Spokesman for INEGroup - (Over 118k members strong!)
CEO/DIR. Internet Network Eng/SR. Java/CORBA Development Eng.
Information Network Eng. Group. INEG. INC.
E-Mail jwkckid1@ix.netcom.com
Contact Number:  972-447-1800 x1894 or 214-244-4827
Address: 5 East Kirkwood Blvd. Grapevine Texas 75208