Finance Committee Meeting Minutes

13 September 2013 – 11.00am.
Via Teleconference

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

Stuart Benjamin

1. 2013 Audited Accounts

  • The 2013 audited accounts were circulated to committee members for review.  It was noted that some minor changes were still required (ie; update of Director Bios).
  • It was agreed the CEO would have the minor changes updated and circulate the final audited accounts to the Board via email for Board members to confirm their agreement by return email to the Declaration on page 20.
  • The Committee resolved to formally recommend to the Board to accept the final updated audited accounts and once accepted by the Board, the Chair and CEO to sign the accounts. Carried.

2. Revised Investment Proposal

  • The revised investment proposal from Nexia Australia was circulated for committee review.
  • Neal Dunn gave a summary of the revised proposal; It was originally agreed $2M would be invested into managed funds due to declining interest rates.  $1M was invested into PIMCO with the remaining $1M yet to be invested.  Given the change in economic conditions, it was opportune to review the remaining proposal still remaining within the confines of the original investment conditions.
  • The Committee discussed the investment proposal for the further $1M presented by Nexia noting the following proposed investments:
    • $350,000 into the PIMCO Australian Focus Fund (the earlier PIMCO investment of $1M was into the PIMCO Bond Fund)
    • $300,000 into UBS Australian Bond Fund
    • $350,000 into UBS Diversified Fixed Interest Fund
  • Each investment consisted of a spread of holdings, and with the exception of 9% of the last mentioned fund, had a BBB credit rating or above.  The Committee was assured of the overall security of the proposal.
  • It was agreed that the proposal would be recommended to the Board at the 15 October 2013 meeting for approval.

3. Outstanding Action Items

  • There were no outstanding action items.

4. Any other business:

  • There was no other business raised.

5. Actions.

  • JL – get updated Director Bios for 2013 audited accounts.
  • CD – make adjustments to 2013 audited accounts and email to Board for Board agreement to Declaration (page 20) via return email.  Once agreed, CD/TS to sign accounts.
  • ND – adjust $1M investment re-proposal with minor changes as discussed; include examples of BB option – email update to CEO for circulation to Board.
  • JOS – arrange ND to attend 15 October auDA Board meeting to present revised investment proposal to Board.

6. Next Meeting

  • Thursday 10 October 2013 at 11.00am via teleconference.