15 April 2015 Finance Committee Minutes

.au Domain Administration Limited

Finance & Audit Sub-Committee Meeting

15 April 2015, 11.00am

Via Teleconference

Present:  Graham McDonald (Chair), Chris Disspain, Kartic Srinivasan, Stuart Benjamin, Josh Rowe, John Higgins (Nexia Australia), Neal Dunne (Nexia Australia – Items 1-3), Jacki O'Sullivan (Minutes)

Apologies:  Joe Manariti, Jo Lim

1.    Continuous Disclosure

  • There were no matters to be disclosed.

2.    Previous Minutes

  • The Committee noted the 18 February 2015 minutes which had been Committee and Board approved via email and published.

3.    Review of Investment Portfolio Options

  • Neal Dunne attended and provided a summary of the Investment Portfolio review and recommendations that were circulated to the Committee prior to the meeting.
  • The issue of whether larger amounts than the $250k Government Guarantee could be invested in Term Deposits with the major banks was raised.  The Committee agreed Neal Dunn would review the current term deposits with a view to consolidating/investing higher amounts.  The CEO will circulate the review to the Committee for discussion and final approval at the June meeting.
  • The Committee agreed to the recommendation of an additional $600k to be invested in the PIMCO Diversified Fixed Interest Fund.  The recommendation will be submitted to the auDA Board on 20 April 2015 for approval, after which time the CEO will implement.
  • The Committee discussed the security of the investments made and was satisfied that the addition of the PIMCO Diversified Fixed Interest Fund will not dilute the overall AAA rated security rating of the investments' 

4.    Financial Statements

  • The March 2015 accounts were circulated via email for Committee review prior to the meeting.  The accounts were summarised as follows:
    • Total cash and investments - $9.496m (includes US$ Bank accounts, Term Deposits and Investments).  It was noted the Registry Licence fee of $1.56M was due by end Financial Year.
    • Net Assets - $9.4m
    • Budget vs. YTD variances were reviewed with most variances due to timing however it was noted some budget items would be pulled back and adjusted for the full year.

5.    Draft 2015/16 Budget

  • The draft 2015/16 budget was circulated to the committee for information only pending final April 2015 figures to ensure the draft is as accurate as possible.
  • Once finalised in early May 2015, a separate meeting of the Committee will be called to review/approve the budget, followed by final sign off by the auDA Board at the June 2015 meeting.

6.    Expenditure above $50K

  • Nil

7.    Outstanding Action Items

  • It was noted the CEO had formally written to the landlord of the 114 Cardigan Street, Carlton building regarding potential purchase of the building by auDA.  The CEO will advise when a response has been received.

8.    Any other business

  • There was no other business

9.    Actions

  • CD - circulate March accounts to Board for April meeting
  • CD – additional $600k to be invested in PIMCO Diversified Fixed Interest Fund – submit to Board for approval, implement once approved.
  • ND/CD – review term deposits with a view to consolidating/investing higher amounts, CD to circulate for discussion and final approval at June meeting.
  • JOS - set special Committee meeting early May 2015 for review & Ctee approval of 2015/16 Budget.

10.  Next Meeting

  • The next regular Committee meeting is on Wednesday 10 June 2015 at 11.00am via teleconference.
  • A special Committee meeting will be arranged for early May 2015 to review/approve the 2015/16 Budget for submission to the auDA Board.