Finance Committee Meeting Minutes

15 August 2012

Present:
Graham McDonald (Chair), Dwayne Varey, Cheryl Langdon-Orr, Kartic Srinivasan, Chris Disspain, John Higgins (NexiaASR), Jacki O’Sullivan (Minutes)

Apologies:
Kim Heitman


1.    Financial Statements review
•    The June 2012 end of financial year and July 2012 accounts were circulated via email for Committee review prior to the meeting.
•    June 2012 end of financial year accounts summary:
•    JH advised the auditors are reviewing the accounts this week
•    In summary:
- total cash $6.035M at end June, members funds $5.965M
- foreign currency accounts - unrealised June amount
- interest received under budget due to lower than expected interest rates which will be addressed in the investment strategy
- ICANN fees up – noted that the current budget needs to be adjusted as these will be up again in the current financial year
•    July 2012 accounts:
•    Balance sheet summary:
- $6.257M cash, increase in members funds to $6.072M
- unrealised loss of $30K due to exchange rate movement
- no major variances to income, domain name fees slightly ahead of budget
- positive variances in expenses due to timing which will adjust over the coming months eg; Anzia/IGF budget split over 4 months
- Legal is under, traffic/rack is over due to invoices billed quarterly
- international travel over due to ICANN Toronto Oct travel already booked & paid
•    GMcD asked for a status update on the Website redevelopment.  CD advised it is currently being worked on, will commence in the near future and will be reported on at the August auDA Board meeting
•    CD will prepare an explanatory note to the auDA Board re; traffic/rack billing and international travel
•    KS asked if stats had been circulated on website traffic.  CD advised he will provide the auDA Board meeting with an update on website stats

2.    Nexia Investment advice
•    The recommendations were circulated prior to the meeting and all reviewed
•    In his absence, Kim Heitman endorsed the Nexia recommended strategy via email
•    JH reminded the Committee this is an indicative portfolio
•    DV noted as we are managing members funds, there must be a degree of caution in the investments
•    The suggested combined portfolio income would be approximately $285K compared to $137K previously which is a significant increase in income
•    CD/GMcD advised Nexia that due to the nature of funds, fixed income was the preferred option
•    JH suggested the Term Deposits be implemented first with the other options being reviewed by the Board and implemented in the near future
•    CLO suggested as auDA is a member based organisation, it may be beneficial to have a set of guidelines produced with background and further information on proposed investments
•    The Committee agreed it would recommend to the auDA Board that $3M would be invested into Term Deposits now ($250K each over 12 banks including HSBC) and other investment options deferred until further clarity is obtained on selected investments.  CD will send the Nexia Report and recommendations to the auDA Board.
•    The Committee also agreed it would recommend to the Board that the Finance Committee is delegated authority to select the final banks for Term Deposit investment
•    JH will prepare a matrix of recommended banks/terms for the Term Deposits.  

3.    Actions.
•    JH – adjust current year budget for increase in ICANN fees
•    CD – to prepare summary note for 20/8 Board meeting re; July accounts - Website development status, traffic/rack billing, international travel and website traffic stats
•    CD – forward Nexia report & Committee Recommendations to auDA Board
•    JH prepare matrix of recommended banks/terms for the Term Deposits

4.    Next Meeting
•    The next Finance Committee meeting will be held on Wednesday 3 October 2012 at 2pm via teleconference