After reading the auDA meeting minutes I don't believe James's questions
have much merit but I do believe auDA needs to be more transparent.

Trying to find the operating expenses/budgets for the last 2-3 years is
difficult to say the least. This is one area auDA can improve.

Comparing the 2002 expenses with 2004 projected budget, where 2003 went
I don't know.
Staff costs 432,455 up to 577,925
Directors costs 75,000 up to 105,000
Other notables
Travel from 84,000 to 154,000
Legal/accounting 122,000 to 212,600
All have increased for sure but no huge leap as James suggested.

Oh thats assuming the CEO is in the above "directors costs" as from
augusts meeting minutes:

The board approved the CEO's remuneration package.
The board agreed that it is not appropriate to publish individual staff salaries.
Action:	The Remuneration Committee will develop some general remuneration guidelines, and report back 
to the board.

As to this foundation, I would like to know why it was created. I don't
agree with the reasons for creating the foundation given in Augusts
minutes or the method it is being funded, see July minutes.

Lee Sanders
Systems Engineer

CD advised that auDA has set up auDA Foundation Ltd as a 100% subsidiary to act as trustee company 
for the auDA Foundation trust. The initial directors of auDA Foundation Ltd are CD, GW and Craig Ng, 
and John Higgins is company secretary. As a subsidiary of auDA, the activities of auDA Foundation Ltd 
are ultimately subject to approval by the auDA board. Administrative support for the auDA Foundation 
will be provided from within auDA's existing resources, at least during the start-up phase.

auDA Foundation Ltd will apply to the ATO for tax exempt status and deductible gift status for the 
trust. Depending on the outcome of the application, the trust will either be funded primarily by auDA 
or will be able to accept gifts from other entities. It was agreed that the auDA Foundation board 
should wait for ATO advice before making decisions about the exact nature and operation of the trust, 
including the appointment of additional directors.

GW explained that the auDA Foundation trust deed covers three main areas of focus:
• education and research - aimed at the tertiary sector, possibly funding PhD scholarships in 
Internet/DNS technology R&D (eg. dealing with spam, security issues, etc) or Internet-related social 
impact R&D (eg. electronic voting, equity and access issues)
• community-based projects - at a local, regional or national level, aimed at supporting Internet-
related activities that have a direct community benefit (eg. regional Internet access) 
• commercially-focused projects - some scope to fund R&D with a commercial application, but also 
including a community aspect or benefit.

Motion (KH proposed, JR seconded): That the board: 
(1) ratify the CEO's appointment of 3 directors of auDA Foundation Ltd
(2) authorise auDA Foundation Ltd to execute the auDA Foundation trust deed
(3) authorise auDA Foundation Ltd to act as trustee company for the trust.
Carried.



June Minutes
• auDA Foundation
Concern: The basis of the Foundation is not understood and its objectives are not stated.
Reponse: Once the Trust Deed has been settled, it will be published on the website accompanied by its 
objectives and an explanatory paper. However it was made clear that the Foundation was to be funded 
from monies raised from the generic names auctions and that (with the possible exception of domain name 
fees from org.au names) there is no intention that auDA’s $10 domain name fee would be paid into the 
Foundation on an ongoing basis.