Finance Committee Meeting Minutes

.au Domain Administration
Finance & Audit Sub-Committee Meeting

11 June 2014, 11.00am
Via Teleconference

Present:
Graham McDonald (Chair), Chris Disspain, Cheryl Langdon-Orr, Kartic Srinivasan, Jo Lim, John Higgins (Nexia Australia), Neal Dunne (Nexia Australia – Item 1-3), Jacki O’Sullivan (Minutes)

Apologies:
Stuart Benjamin

1. Continuous Disclosure
• There were no matters to be disclosed.

2. Previous Minutes
• The Committee noted the 9 April 2014 minutes which had been Committee and Board approved via email and published.

3. Investment Portfolio Update
• Neal Dunne, Nexia Australia, attended the meeting and provided a summary update of the Investment Portfolio.
• The average return on term deposit investments and managed funds was 3.6% each. Given Europe had recently moved to negative interest rates and rates continued low in the USA, it was anticipated that Australian rates would be likely also to remain low for the remainder of 2014 with the possibility of an increase in early 2015. While low because the Australian interest rates remained in positive territory, they were in high demand from investors. This has resulted in an appreciation in the capital value to $63,419.
• No change in the investments was recommended. The committee agreed that the conservative investment strategy should be maintained

4. Financial Statements
• The May 2014 accounts were circulated via email for Committee review prior to the meeting.
• May 2014 accounts summary:
• Total cash and investments - $9.236M (includes Term Deposits and Investments)
• Net Assets - $9.233M
• It was noted the US$ account balance had dropped to approximately $300K due to the 2 year ICANN fee payment of $637k. The Committee was advised, due to the new agreement with ICANN, future annual fees would be significantly lower.
• Budget vs. YTD variances were reviewed.
• The Committee approved the May 2014 accounts for circulation to the Board for the 16 June 2014 meeting.

5. Budget 2014-15
• The Committee noted the approved 2014-15 budget had been circulated to the Board for discussion and approval at the meeting on 16 June 2014.

6. Expenditure above $50K
• There was no expenditure to note above $50K.

7. Outstanding Action Items
• Cash on hand – buying office premises vs. renting: The Committee was advised contact was still being made with the landlord and further updates will be provided in due course.

8. Any other business
• US$ Account: The Committee agreed that as the US$ account had now reduced to approximately $300K, a recommendation would be put to the Board at the meeting on 16 June 2014 to purchase additional US$ while the conversion rate is still high.

9. Actions
• CD – follow-up contact with Cardigan Street landlord to gauge interest in selling the premises – update to Committee in due course.
• CD/GMcD – Recommendation to 16 June 2014 Board meeting re; purchase of additional US$.
• CD - circulate May 2014 accounts to Board for the 16 June 2014 meeting.

10. Next Meeting
• Wednesday 20 August 2014 – 11.00am via teleconference.