Administrative Centre

30 Frances St

Randwick 2031

Tel: 02 9399 0999

Fax 02 9319 1510

DX 4121 Maroubra Junction

general.manager@randwick.nsw.gov.au

INCORPORATED

AS A MUNICIPALITY

22 FEBRUARY 1859

PROCLAIMED AS

A CITY JULY 1990

 

7th October, 2003

 

ADMINISTRATION AND FINANCE COMMITTEE MEETING

 

NOTICE IS HEREBY GIVEN THAT AN ADMINISTRATION AND FINANCE   COMMITTEE MEETING OF THE COUNCIL OF THE CITY OF RANDWICK WILL BE HELD IN THE COUNCIL CHAMBER, TOWN HALL, 90 AVOCA STREET, RANDWICK, ON TUESDAY, 14TH OCTOBER, 2003 AT 6:00 P.M.

 

Committee Members:                  His Worship, the Mayor, Cr D. Sullivan, Crs Andrews (Deputy Chairperson), Daley, Matson, Matthews, Notley-Smith, Procopiadis (Chairperson) and Tracey.

 

Quorum:                                      Five (5) members.

 

NOTE: AT THE EXTRAORDINARY MEETING HELD ON 5TH SEPTEMBER, 2000, THE COUNCIL RESOLVED THAT THE ADMINISTRATION AND FINANCE COMMITTEE BE CONSTITUTED AS A COMMITTEE WITH FULL DELEGATION TO DETERMINE MATTERS ON THE AGENDA.

 

 

1          Apologies

 

2           Minutes

 

CONFIRMATION OF THE MINUTES OF THE ADMINISTRATION & FINANCE COMMITTEE MEETING HELD ON TUESDAY, 9TH SEPTEMBER, 2003.

 

3           Addresses to Committee by the Public

 

4           Mayoral Minutes

 

5           Finance

 

5.1                        

DIRECTOR GOVERNANCE, MANAGEMENT & INFORMATION SERVICES' REPORT 27/2003 - INVESTMENT OF COUNCIL FUNDS AS AT 31 AUGUST 2003.

2

 

 

6           General Business

 

7           Notice of Rescission Motions

 

 

 

……………………………..

GENERAL MANAGER


 

Director Governance, Management & Information Services' Report 27/2003

 

 

SUBJECT:

INVESTMENT OF COUNCIL FUNDS AS AT 31 AUGUST 2003

 

 

DATE:

24 September, 2003

FILE NO:

98/S/0745

 

 

REPORT BY:            DIRECTOR GOVERNANCE, MANAGEMENT & INFORMATION SERVICES  

 

INTRODUCTION:

 

To report on Council’s current investments.

 

ISSUES:

 

Council is authorised by s625 of the Local Government Act to invest its surplus funds. Funds may only be invested in the form of investment notified by Order of the Minister dated 29 November 2000.

 

The Local Government Financial Management Regulations prescribe the records that must be maintained in relation to Council’s investments. The regulations also require that the responsible accounting officer provide a written report to each ordinary meeting of the Council giving details of all moneys invested and a certificate as to whether or not the investments have been made in accordance with the Act, the regulations and Council’s Investment Policy No: 3.02.07.

 

Details of all investments are shown on the attachment sheet titled “Details of cash investments and analysis of investment performance as at 31 August 2003” and in the attached graphs.

 

CONCLUSION:

 

All surplus cash has been invested as at 31 August 2003 in accordance with Policy No: 3.02.07 and the provisions of s625 of the Local Government Act have been complied with.

 

RECOMMENDATION:

 

That the report dated 24 September 2003 in relation to the investment of Council funds be noted.

 

 

ATTACHMENT/S:

 

1. Details of investments and analysis of investment performance as at 31 August 2003.

 

2. Graphs (5). 

 

 

 

 

 

 

 

 

 

………………………………

 

 

 

 

 

 

 

………………………………

MARK HUMMERSTON

BRIAN GREGAN

DIRECTOR GOVERNANCE, MANAGEMENT & INFORMATION SERVICES

MANAGER, FINANCIAL SERVICES

 

 

 

 

 

 


 

DETAILS OF CASH INVESTMENTS AND ANALYSIS OF INVESTMENT PERFORMANCE

AS AT 31 AUGUST 2003

 

 

 

Investment Manager

 

Credit

Ratings

 

Amount Invested

 

 

Interest  Earned

August

 

Amount              % Return

**

UBSWA

Bank Bill

Index   %

 

 

Interest Earned

Financial Year to Date

Amount % Return

**

UBSWA

Bank

Bill

Index

%

 

 

Interest Earned

Last 12 Months

 

Amount % Return

UBSWA

Bank

 Bill

Index 

 %

 

#

$

$

Month

Annualised

For Period

 

$

 

 

$

 

**

LG Financial Services 11am Call

AA

1,039,294

1,728

0.38

4.65

0.40

2,079

4.65

4.74

99,858

4.65

4.90

 

 

 

 

 

 

 

 

 

 

 

 

 

UBS Credit Cash Enhanced

Af

12,241,307

56,687

0.47

5.62

0.40

111,189

5.77

4.74

661,210

5.98

4.90

 

 

 

 

 

 

 

 

 

 

 

 

 

Deutsche Cash Plus

Af

12,291,505

50,033

0.41

4.92

0.40

110,306

5.58

4.74

616,509

5.54

4.90

 

 

 

 

 

 

 

 

 

 

 

 

 

Macquarie Diversified Treasury

Af

12,315,162

53,616

0.44

5.27

0.40

108,490

5.62

4.74

614,652

5.50

4.90

 

 

 

 

 

 

 

 

 

 

 

 

 

CFS Wholesale Premium Cash Enhanced

AAf

6,817,081

11,831

0.25

2.98

 

Index %

0.40

23,131

3.75

4.74

306,447

4.84

4.90

 

 

44,704,347

173,895

 

4.81

 

355,195

 

 

2,298,676

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


        Credit Ratings                                                               Standard & Poors

 

Extremely strong capacity to pay                                                    AAA

Very strong capacity to pay                                                             AA

Adequate capacity to pay                                                                BBB

Funds valued on a mark to market basis                                            f

Funds valued on an accruals basis                                                    m

 

 

 

**UBSWA Bank Bill Index

 

-Is a performance benchmark published in the Australian Financial Review.

 

-The index rate can be compared to the interest rate earned by Council on its investments.

 

 

 

Interest Earned

                                                                                                                      $

 

In August 2003                                                                                  174,626

For 2003/2004 to 31 August –                                                           355,926                                 

 

 

Original estimate budget for interest earned – 2003/2004              1,818,000

 

 

 

 

 

 

*

**

Monthly earning rates for the last three months

 

 

LG Financial Services 11am Call                          

UBS Credit Cash Enhanced

Deutsche Cash Plus

Macquarie Diversified Treasury

CFS Wholesale Premium Cash Enhanced

 

WDR Bank Bill Index

 

June

%

 

0.38

0.54

0.50

0.45

0.39

 

 

0.39

July

%

 

0.38

0.45

0.49

0.45

0.34

 

 

0.39

August

%

 

0.38

0.47

0.41

0.44

0.25

 

 

0.40

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*            Includes bank account interest as well as interest on investments with Managed Funds.

**           Includes bank account interest and those Managed Funds no longer used.

 

 

I certify that the above investments have made in accordance with the Local Government Act, the regulations

and Council’s investment policy No. 3.02.07.

                        ________________________

BRIAN GREGAN

MANAGER, FINANCIAL SERVICES DIVISION