Recently, ICANN released its Annual Report for Fiscal Year 2023 (FY23), along with audited financial statements. Let’s break down what this means and what insights we can glean from these reports.
Financial Statements
One of the standout aspects of the FY23 reports is the “unqualified” opinion from the independent audit firm, Moss Adams LLP. This is good news because it means there were no issues found during the financial audit. In other words, ICANN’s financial house is in order.
Financial Highlights
Now, let’s delve into the financial highlights. In FY23, ICANN maintained a strong financial position, similar to the previous year. This stability is crucial for an organization that oversees vital aspects of the internet.
ICANN reported Funds Under Management of US$518 million at the end of FY23, marking an increase of US$12 million from the beginning of the fiscal year. This growth can be attributed to smart investments and operational efficiencies. However, it’s important to note that expenses did rise due to the resumption of in-person events and the initiation of the New Generic Top-Level Domain (gTLD) Program: Next Round.
To support this new initiative, ICANN also increased its staffing levels, bringing the total headcount to 442 by the end of FY23, up from 412 in the previous year. This reflects ICANN’s commitment to managing the expansion of the internet responsibly and effectively.
Publication Timing and Contents
ICANN takes its responsibilities seriously, and in accordance with its Bylaws, the organization has shared its FY23 Annual Report and audited financial statements ahead of the October 28 deadline. The Annual Report serves as a progress update on ICANN’s efforts to meet its obligations and strategic goals. It also provides valuable insights into ICANN’s commitment to transparency and diversity.
The Impact of ASC 842
There’s one more important point to highlight. A new U.S. accounting standard, ASC 842, became effective in FY23. This standard requires that all leases longer than 12 months be reflected on the balance sheet. Consequently, ICANN’s financial statements now show a net amount of US$36 million, representing the value of the office space that the organization is leasing.
In conclusion, ICANN’s FY23 Annual Report and financial statements offer an encouraging picture of its financial health and its commitment to its mission. With careful management, strategic investments, and an eye toward the future, ICANN continues to play a vital role in shaping the internet’s growth while ensuring transparency and accountability. It’s reassuring news for anyone interested in the world of domain names, emails, and cybersecurity, as a stable and effective ICANN benefits us all in this digital age.
Read the full report here: https://www.icann.org/en/system/files/files/annual-report-2023-en.pdf
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