Finance Committee Meeting Minutes

17 April 2013 – 11.00am.
Via Teleconference

Graham McDonald (Chair), Cheryl Langdon-Orr, Kartic Srinivasan, Chris Disspain, John Higgins (Nexia Australia), Neal Dunn (Nexia Australia), Jacki O’Sullivan (Minutes)

Stuart Benjamin

1. Financial Statements review

  • The March 2013 accounts were circulated via email for Committee review prior to the meeting.
  • March 2013 accounts summary:
  • Term Deposits have been rolled over – JH to send information to CD for inclusion with 22 April 2013 Board papers.
  • US$25k remains owing to auDA by BizTech for server equipment paid for and not received.  A Notice has been served on BizTech by Maddocks for recovery of the funds.
  • Travel – reimbursements are pending from ICANN.
  • Prepayments – due to an internal error at HSBC, Salaries were processed twice on 28 March 2013.  The pre-payment has now cleared as the salary payments due on 11 April 2013 did not process.
  • Assets - $6.1M.
  • Budget vs. YTD variances were reviewed.
  • Website – it was noted this is under budget and is likely to remain under budget.
  • The Committee approved the accounts for circulation to the Board for the 22 April 2013 meeting.

2. Investment Proposal

  • The Investment Proposal by Nexia Australia was circulated to the Committee for review.
  • Neal Dunn, Nexia Australia, gave a summary of the proposed investment options.  He advised the portfolio had been compiled with the objective being to preserve capital and maximise returns in a low risk environment and the recommendations consist mainly of fixed income securities, predominantly bonds and hybrid securities.  It was noted an ‘Exposure to Inflation’ link bond had also been included for inflation protection.
  • The Committee discussed the options and agreed to the proposal of $2M divided equally between the suggested bonds of Aberdeen & Pimco.  It was agreed an updated slide set of the proposal would be forwarded by Nexia to CD for circulating with 22 April 2013 auDA Board papers.
  • The Committee also agreed John Higgins and Neal Dunn of Nexia Australia would attend the auDA Board meeting on Monday 22 April 2013 to present the proposal and answer any questions.
  • GMcD advised he had held discussions with the Department of Finance on guidelines for investments.  A summary of these discussions was circulated to the Committee for information and it was agreed CD would include this summary with the auDA Board papers for 22 April 2013.

3. Actions

  • JH/ND – send updated slide set of investment proposal to CD by 18 April 2013.
  • JH – send Term Deposit roll over details to CD by 18 April 2013.
  • CD – circulate March accounts, investment proposal, ‘Guidelines for Investment’ discussion summary and Term Deposit roll over details with Board papers for 22 April 2013 meeting
  • JH/ND - attend 22 April 2013 auDA Board meeting to present proposal and answer questions.

4. Next Meeting

  • Wednesday 12 June 2013 at 11.00am via teleconference.