Finance Committee Meeting Minutes

6 June 2012

Present: G McDonald(Chair), Kim Heitman, Cheryl Langdon-Orr, Dwayne Varey , Kartic Srinivasan

In attendance: Chris Disspain, John Higgins ( accountant Nexia ASR)

1. Current Accounts
The Committee accepted the Profit and Loss statement and the Balance sheet for the period ending 31 May 2012 with some minor adjustments and notes as follows:
(i)  ICANN account for the current financial year is outstanding. When received it would be paid from US held funds.
(ii) Some variation arising from the receipt of interest from invested funds arising because:
-interest was paid quarterly,
-interest rates were reducing ,
The Committee decided to request John to arrange a meeting for Graham, Chris and John with the investment advisory arm of Nexia ASR to prepare an investment proposal  for  the Committee to consider to make a recommendation to the August Board meeting.
(iii) with respect to operating costs:
    - the .au Governance Review expenses had been met
    - there will be no further Panel expenses for 2011-12 year (leaving a deficit of $18,108)
   - a legal expense of approximately $100,000 has been incurred arising from the NSW Supreme court decision in the Loans & Debt Assistance Incorp v .au Domain Administration Ltd. There is little likelihood of any cost recovery.
   - technical support bill is likely to reduce to $90,000  (from estimated $133,000).
The Committee discussed the format for the presentation of the final 2012 financial accounts.

2. The 2012-13 Budget
The Committee discussed the amended 2012-13 budget -
- to retain the net growth domain name projected figure of 14.42% for the 2012 year as the opening estimate for the 2012-13 year,
- to devote a topic based Committee meeting to reconsider the structure for the Security and Stability reserve fund, and
- the estimated  figures would be adjusted to reflect the 2012 financial year's results when these were known ,
- staff salaries were, with some minor exceptions, retained within a 5% margin,
- costs associated with the proposed Registrar Security Standard would not be required until the Board had considered the recommendation (likely to be at the February 2013 meeting),
- Kartic requested figures on the current number of .au website visits be provided so that a comparison can be made following the proposed 2013 redevelopment of the site.

The meeting closed at 3pm