10 June 2016 Finance Committee Meeting Minutes

.au Domain Administration Ltd

Finance and Audit Sub-Committee Meeting

Friday 10 June 2016, 11.00am  

Via Teleconf

Present:  Graham McDonald (Chair), Jo Lim, Joe Manariti, Miguel Wood, Stuart Benjamin (item 1-6), John Higgins (Moore Stephens), Jacki O'Sullivan (Minutes)

Apologies:  Grant Wiltshire, Kartic Srinivasan

1.    Continuous Disclosure

There were no matters to be disclosed.

2.    Confirmation of April 2016 Minutes

The Committee noted the 13 April 2016 minutes which had been Committee and Board approved via email and published.

3.    Review of April 2016 Action Items

Action items from the 13 April 2016 minutes were reviewed and noted as follows:

  • JL – circulate March 2016 accounts to Board for the April meeting:  Completed
  • JL – review billing of Registry Licence fee and advise J Higgins when to bill:  Completed
  • JL/JH – update draft budget, circulate in June with updated May accounts for Committee signoff:  Completed
  • JL – request best practice recommendations for budget setting from PPB via Maddocks:  Currently being finalised with Maddocks.  SB will forward recommendations to the Board for consideration at the June 2016 Board meeting.
  • JL – review staff accrued leave balances, advise any of excess to reduce:  Completed
  • JL – review Registry Contract timing issues – report back to Finance Committee:  Completed
  • JL – review ICANN Contract and fees:  It was noted that fees were last renegotiated in 2014 and the ccNSO guidelines are due for review in 2018.  SB expressed that DoC have no concerns with the current fee levels.  SB will recommend to the Board that there is no need for a further review until the ccNSO review in 2018.
  • JL – review professional services costs over $50k p/annum:  Carried forward
  • JOS – process GMcD as second investment account signatory:  Completed
  • JOS – advise relevant Board members to contact JH re; super issues re; March 2016 sitting fee:  Completed
  • JOS – c/f Grant Wiltshire's item for June Committee agenda:  Carried forward

4.    Accounts

The May 2016 accounts were circulated via email for Committee review prior to the meeting and were summarised as follows:

  • Total cash and investments - $12.77m (includes cash, US$ Bank accounts, Term Deposits and Investments).
  • Net Assets $12.8m
  • Budget vs. YTD variances were summarised with no major issues highlighted. 
  • The Committee approved the accounts to be forwarded to the Board for the June 2016 Board meeting.

5.    2016/2017 Budget

  • J Higgins summarised the circulated 2016/2017 draft budget which was last reviewed at the April 2016 meeting and had now been updated with May budget figures and adjusted accordingly.
  • J Lim reviewed the Operational expenses with the highlighted adjustments and the following was noted:
    • AGM expenses had been reduced.
    • The APrIGF item was summarised noting auDA had been named as hosts of the Asia Pacific Regional Internet Governance Forum to be held in 2017.  It was noted that costs would be incurred in the 2017/18 financial year, however an amount had been included in the 2016/17 budget for any pre-event costs that may be incurred.  It was also noted there would be an expectation to provide fellowship programme support for the event, it would be open for corporate sponsorship, final event dates, venues and possibly holding the event interstate will all be investigated with further information provided in due course.
    • S Benjamin queried the application of a 5% allocation for staff salary increases. It was clarified that the increase was not automatically applied across the board but that individual assessments against performance were undertaken annually and any increase up to a maximum of 5% allocated.  It was agreed that no staff increases were to be allocated until after the incoming CEO had been appointed and considered any recommended increases.  The board are to be advised before staff are informed of salary increases.
    • The Committee agreed the 2016/2017 draft budget should now be submitted to the Board with a recommendation to approve at the June 2016 meeting.

6.    Expenditure above $50K

  • The InterSearch fee in relation to CEO recruitment was noted, which had been approved by the Board Recruitment Sub-Committee.
  • The estimated total cost of $81,375 was also noted for the Park Hyatt contract for the 2016 auIGF.

7.    Any Other Business

  • FBT issues:
    • J Higgins raised the various FBT issues which will be followed up as necessary.
    • Cardigan Street Property inspection report:
      • S Benjamin had previously raised the issue of the possible purchase of the Cardigan Street building and a valuation report had been sought.  J Lim advised the building agents are due to be advised of our intention to renew by 17/6/16.  G McDonald will contact S Benjamin to circulate the valuation information and suggested recommendations as soon as possible.
      • Discussion regarding G Wiltshire's suggestion to enhance the Committee's role with the introduction of a dashboard methodology aligning finance and organisational strategy and objectives. 
        • Carried forward.

8.    Next Meeting

  • Monday 8 August 2016 – 11.00am (TBC)