11 June 2015 Finance Committee Minutes

Finance & Audit Sub-Committee Meeting

11 June 2015, 12.00noon

Via Teleconference

Present:  Graham McDonald (Chair), Chris Disspain, Kartic Srinivasan, Stuart Benjamin, Joe Manariti, Jo Lim, John Higgins (Nexia Australia), Jacki O'Sullivan (Minutes)

Apologies:  Josh Rowe

1.    Continuous Disclosure

  • There were no matters to be disclosed.

2.    Previous Minutes

  • The Committee noted the 15 April 2015 minutes which had been Committee and Board approved via email and published.

3.    Financial Statements

  • The May 2015 accounts were circulated via email for Committee review prior to the meeting.  The accounts were summarised as follows:
    • Total cash and investments - $9.635m (includes US$ Bank accounts, Term Deposits and Investments).
    • Net Assets - $11m
    • Budget vs. YTD variances were reviewed with no major issues noted.

4.    Expenditure above $50K

  • Nil

5.    Draft 2015/16 Budget

  • An updated 2015/16 budget was circulated to the committee which now include final May numbers.
  • The Committee discussed and agreed to reduce the projected investment income from $360k to $300k.  JH will update and send the final version to the CEO.
  • The Committee agreed the final version should now be submitted to the Board with a recommendation to approve at the June meeting.

6.    Investment Portfolio

  • A separate minute was circulated to the Committee regarding auDA’s Bond and Term Deposit Investments which included a summary and items for Board approval.
  • It was agreed the Committee would recommend to the Board at the June meeting:
    • to increase the investment in Bond Funds from $2m to $3.5m, comprising additional Bond investment amounts of UBS Australian Bond Fund $300,000, UBS Diversified Fixed Interest Fund $200,000, PIMCO Australian Focus Fund $270,000, PIMCO Australian Bond Fund -$137,000 (reduction) and the new investment to PIMCO Diversified Fixed Interest Fund $600,000
    • to increase the Term Deposit investments from $3M to $5.5M, and to consider investment amounts above the $250K Government Guarantee limit.
    • Regarding the Term Deposits, it was agreed JH would provide a full list of the current term deposits and when they are due to roll and a 'Money Market' list of institutions suitable for investment of amounts above the $250K Government Guarantee limit to the CEO for circulation to the Board.

7.    Outstanding Action Items

  • There were no outstanding action items.

8.    Any other business

  • There was no other business

9.    Actions

  • CD – circulate May accounts, final 2015-16 budget, Minute re; investments to Board for June meeting
  • JH/CD – JH provide list of current term deposits & list of 'Money Market' Institutions to CD for circulation to the Board
  • GMCD/JOS – update 15 April 2015 Minutes

10.  Next Meeting

  • Wednesday 12 August 2015 at 11.00am via teleconference.