Finance Committee Meeting Minutes

13 June 2013 – 2.00pm.
Via Teleconference

Present:
Graham McDonald (Chair), Cheryl Langdon-Orr, Kartic Srinivasan, Stuart Benjamin, Chris Disspain, Jo Lim, John Higgins (Nexia Australia), Jacki O’Sullivan (Minutes)

Apologies:
Nil


1. Continuous Disclosure

  • There were no matters to be disclosed.

2. Financial Statements

  • The May 2013 accounts were circulated via email for Committee review prior to the meeting.
  • May 2013 accounts summary:
  • Total cash - $7.74M, Net Assets - $7.135M
  • Term Deposits are fully invested on rolling maturing dates currently earning an average interest rate of 4.35%. Implementation of additional investment funds previously approved, are yet to be finalised.
  • It was noted that $397 in creditors includes the ICANN payment which will be paid by EoFY and there may be some variance as the conversion rate used was at 30/6/12.
  • Staff holiday leave loading was not adjusted during the year and would be adjusted by the auditor at EoFY. It was noted there was a procedure in place to ensure staff do not accrue more than 2 years leave.
  • Budget vs. YTD variances were reviewed.
  • Overall accounts are tracking under budget and with variances adjusted at EoFY, it was noted there would be a greater surplus than that currently forecast.
  • The Committee approved the accounts for circulation to the Board for the 17 June 2013 meeting.

3. 2013-2014 Budget

  • The revised 2013-2014 budget was summarised by J Higgins.
  • The Committee approved the 2013-2014 Budget to be submitted to the auDA Board for final approval at 17 June 2013 meeting.

4. Outstanding Action Items

  • There were no outstanding action items.

5. Any other business

  • June Board fees:  It was requested that the Independent Board Director fees be paid prior to EoFY for super contribution purposes.
  • Domain Name Licence Periods briefing paper:  The Committee discussed the circulated briefing paper in relation to the 2010 Names Policy Panel’s outstanding recommendation to change the .au domain name licence period from the current fixed 2 year period to a variable 1, 2, 3, 4 or 5 year period.   The Committee agreed that, due to current market uncertainty and the need for more detailed financial analysis of the implications for auDA’s revenue model, it would not be recommended to change the domain name licence period at this point in time.  The Committee agreed that the briefing paper would be provided at the auDA Board meeting on 17 June 2013 with a recommendation from the Committee:
    • 1) not to adopt the Panel’s recommendation at this time, and
    • 2) to reconsider the Panel’s recommendation, in light of prevailing market conditions and a detailed financial analysis, as part of preparations for the registry tender process scheduled for 2017.

6. Actions

  • JH – follow-up Investment Proposal implementation with Neal Dunn and provide to CD.
  • JH – have Paola arrange Independent Director June Fee payments prior to EoFY.
  • CD – circulate May accounts, 2013-14 Budget and Licence Briefing papers with Board papers for 17 June 2013 meeting

7. Next Meeting

  • Wednesday 14 August 2013 at 11.00am via teleconference.