18 February 2015 Finance Committee Minutes

.au Domain Administration

Finance & Audit Sub-Committee Meeting

18 February 2015, 11.00am

Via Teleconference

 

Present:

Graham McDonald (Chair), Chris Disspain, Kartic Srinivasan, Stuart Benjamin, Josh Rowe, Joe Manariti, John Higgins (Nexia Australia), Jo Lim (Minutes)

 

Apologies:

Nil

 

1.    Continuous Disclosure

  • The Committee welcomed new members Josh Rowe and Joe Manariti.
  • There were no matters to be disclosed.

 

2.    Previous Minutes

  • The Committee noted the 10 December 2014 minutes which had been Committee and Board approved via email and published.

 

3.    Financial Statements

  • January 2015 accounts were circulated via email for Committee review prior to the meeting.  The accounts were summarised as follows:
    • Total cash and investments - $9.43m (includes US$ Bank accounts, Term Deposits and Investments
    • Net Assets - $9.188m
    • Budget vs. YTD variances were reviewed with the following points noted:
      • the majority of variances are timing differences that will pan out over the year.

 

4.    Expenditure above $50K

  • Nil

 

5.    Any other business

  • The Committee discussed auDA's current investment strategy of splitting funds between bonds and rolling fixed term deposits. It was noted that the bonds have been receiving rates between 5.7% and 9.5% on an annualised basis, which is a good performance overall to date, but no guarantee of future performance. It was further noted that auDA's need to have ready access to liquid funds has not increased since the initial investments were made, and therefore the Committee may want to consider placing more funds into longer term investments.
  • It was agreed to ask Neil Dunne from Nexia to present on investment options to Committee in March, with a view to making a formal recommendation to the Board in April.

 

6.    Actions

  • CD to write formally to landlord regarding potential purchase of the Cardigan St offices.
  • CD to circulate Jan accounts to Board for Feb meeting
  • JH to arrange for Neal Dunne to present to the Committee in March.

 

7.    Next Meeting

  • The next regular Committee meeting is on Wednesday 15 April 2015 – 11.00am via teleconference. There may need to be an additional meeting in April to consider the draft FY15/16 budget.
  • There will be a special meeting convened in March to consider investment options.