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

 

1st June, 2004

 

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, 8TH JUNE, 2004 AT 6:00 P.M.

 

Committee Members:                  His Worship the Mayor, Cr M. Matson, Crs Andrews, Daley, Hughes (Deputy Chairperson), Kenny, Nash, Procopiadis & Seng (Chairperson.)

 

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, 11TH MAY, 2004.

 

3           Addresses to Committee by the Public

 

4           Mayoral Minutes

 

5           Finance

 

5.1                        

DIRECTOR GOVERNANCE, MANAGEMENT & INFORMATION SERVICES' REPORT 11/2004 - INVESTMENT OF COUNCIL FUNDS AS AT 31 MARCH 2004.

2

 

5.2                        

DIRECTOR GOVERNANCE, MANAGEMENT & INFORMATION SERVICES' REPORT 13/2004 - INVESTMENT OF COUNCIL FUNDS AS AT 30 APRIL 2004.

13

 

 

6           General Business

 

7           Notice of Rescission Motions

 

……………………………

GENERAL MANAGER


 

Director Governance, Management & Information Services' Report 11/2004

 

 

SUBJECT:

INVESTMENT OF COUNCIL FUNDS AS AT 31 MARCH 2004

 

 

DATE:

3 May, 2004

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 March 2004” and in the attached graphs

 

CONCLUSION:

 

All surplus cash has been invested as at 31 March 2004 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 “Director Governance, Management & Information Services’ Report No. 11/2004 dated 3 May 2004 in relation to the investment of Council funds be noted.

ATTACHMENT/S:

 

1. Details of investments and analysis of investment performance as at 31 March 2004.

 

2. Graphs (7). 

 

 

 

 

 

 

 

 

 

………………………………

 

 

 

 

 

 

 

………………………………

MARK HUMMERSTON

BRIAN GREGAN

DIRECTOR GOVERNANCE, MANAGEMENT & INFORMATION SERVICES

MANAGER, FINANCIAL SERVICES

 

 

 

 

 

 


DETAILS OF CASH INVESTMENTS AND ANALYSIS OF INVESTMENT PERFORMANCE

AS AT 31 MARCH 2004

 

Investment Manager

 

Credit

Ratings

 

Amount Invested

 

 

Interest  Earned

March

 

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

2,009,137

24,214

0.42

5.15

0.48

84,408

N/A

5.84

87,340

N/A

5.11

 

 

 

 

 

 

 

 

 

 

 

 

 

LGFS Expanded Credit Facility

Af

7,205,337

35,525

0.50

6.01

0.48

205,335

5.97

5.84

205,335

N/A

5.11

 

 

 

 

 

 

 

 

 

 

 

 

 

Commonwealth Shield Series 12

AA

4,000,000

22,288

0.54

6.55

0.48

143,705

6.55

5.84

143,705

N/A

5.11

 

 

 

 

 

 

 

 

 

 

 

 

 

Commonwealth Shield Series 21

AA

1,000,000

 

-

Invested 25 March

Fund Commenced

1 April

 

-

N/A

 

-

 

-

N/A

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UBS Credit Cash Enhanced

Af

8,384,820

42,571

0.51

6.18

0.48

454,702

5.92

5.84

641,037

5.99

5.11

 

 

 

 

 

 

 

 

 

 

 

 

 

Deutsche Cash Plus

Af

8,665,001

45,950

0.53

6.46

0.48

483,803

6.00

5.84

662,009

5.97

5.11

 

 

 

 

 

 

 

 

 

 

 

 

 

Macquarie Diversified Treasury

Af

7,406,309

37,468

0.51

6.15

0.48

399,636

5.74

5.84

566,444

5.68

5.11

 

 

 

 

 

 

 

 

 

 

 

 

 

Macquarie Income Plus

Af

5,040,235

27,793

0.55

6.73

0.48

40,235

N/A

5.84

40,235

N/A

5.11

 

 

 

 

 

Index %

 

 

 

 

 

 

 

 

 

 43,710,838

235,809

 

5.77

 

1,811,824

 

 

2,346,105

 

 


        Credit Ratings                                                           Standard & Poors

 

Extremely strong capacity to pay                                                    AAA

Very strong capacity to pay                                                             AA

Funds exhibit strong protection against credit default                         Af

 

 

 

#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 March 2004                                                                               236,749

                                                                                                 

For 2003/2004 to 31 March –                                                      1,851,869

                                                                                                 

 

 

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

Current estimate budget for interest earned – 2003/2004                2,300,000

 

 

 

 

 

 

*

 

**

Monthly earning rates for the last three months

 

 

LG Financial Services 11am Call                          

LGFS Expanded Credit Facility

Commonwealth Shield Series 12

Commonwealth Shield Series 21

UBS Credit Cash Enhanced

Deutsche Cash Plus

Macquarie Diversified Treasury

Macquarie Income Plus

 

UBSWA Bank Bill Index

 

Jan

%

 

0.42

0.49

0.53

-

0.48

0.53

0.51

-

 

0.46

Feb

%

 

0.42

0.48

0.53

-

0.46

0.46

0.41

0.44

 

0.44

Mar

%

 

0.42

0.50

0.54

-

0.51

0.53

0.51

0.55

 

0.48

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

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

                        ***      The interest return on this investment has been estimated. Interest rates and amounts invested vary on a daily basis.

                       

 

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








 

Director Governance, Management & Information Services' Report 13/2004

 

 

SUBJECT:

INVESTMENT OF COUNCIL FUNDS AS AT 30 APRIL 2004

 

 

DATE:

26 May, 2004

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 30 April 2004” and in the attached graphs

 

 

CONCLUSION:

 

All surplus cash has been invested as at 30 April 2004 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 “Director Governance, Management & Information Services’ Report No. 13/2004 dated 25 May 2004 in relation to the investment of Council funds be noted.

 

ATTACHMENT/S:

 

1. Details of investments and analysis of investment performance as at 30 April 2004.

 

2. Graphs (7). 

 

 

 

 

 

 

 

 

 

………………………………

 

 

 

 

 

 

 

………………………………

MARK HUMMERSTON

BRIAN GREGAN

DIRECTOR GOVERNANCE, MANAGEMENT & INFORMATION SERVICES

MANAGER, FINANCIAL SERVICES

 

 

 

 

 

 


DETAILS OF CASH INVESTMENTS AND ANALYSIS OF INVESTMENT PERFORMANCE

AS AT 30 APRIL 2004

 

 

Investment Manager

 

Credit

Ratings

 

Amount Invested

 

 

Interest  Earned

April

 

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

1,923,351

5,269

0.42

5.15

0.45

89,677

N/A

5.21

91,520

N/A

5.17

 

 

 

 

 

 

 

 

 

 

 

 

 

LGFS Expanded Credit Facility

Af

7,249,950

44,613

0.62

7.82

0.45

249,948

6.23

5.21

249,948

N/A

5.17

 

 

 

 

 

 

 

 

 

 

 

 

 

Commonwealth Shield Series 12

AA

4,000,000

21,476

0.54

6.55

0.45

165,181

6.55

5.21

165,181

N/A

5.17

 

 

 

 

 

 

 

 

 

 

 

 

 

Commonwealth Shield Series 21

AA

1,000,000

 

-

-

-

-

 

-

N/A

 

-

 

-

N/A

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UBS Credit Cash Enhanced

Af

6,921,711

36,891

0.45

5.58

0.45

491,593

5.92

5.21

617,372

6.06

5.17

 

 

 

 

 

 

 

 

 

 

 

 

 

Deutsche Cash Plus

Af

7,705,102

40,102

0.51

6.38

0.45

523,903

6.00

5.21

637,016

6.07

5.17

 

 

 

 

 

 

 

 

 

 

 

 

 

Macquarie Diversified Treasury

Af

6,443,241

36,932

0.51

6.32

0.45

436,568

5.81

5.21

546,885

5.83

5.17

 

 

 

 

 

 

 

 

 

 

 

 

 

Macquarie Income Plus

Af

5,064,284

24,048

0.48

5.96

0.45

64,285

N/A

5.21

64,284

N/A

5.17

 

 

 

 

 

Index %

 

 

 

 

 

 

 

 

 

40,307,638

209,331

 

5.60

 

2,021,155

 

 

2,372,206

 

 


        Credit Ratings                                                           Standard & Poors

 

Extremely strong capacity to pay                                                    AAA

Very strong capacity to pay                                                             AA

Funds exhibit strong protection against credit default                         Af

 

 

 

#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 March 2004                                                                               209,331

                                                                                                  

For 2003/2004 to 31 March –                                                      1,852,519

                                                                                                 

 

 

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

Current estimate budget for interest earned – 2003/2004                2,300,000

 

 

 

 

 

 

*

 

**

Monthly earning rates for the last three months

 

 

LG Financial Services 11am Call                           

LGFS Expanded Credit Facility

Commonwealth Shield Series 12

Commonwealth Shield Series 21

UBS Credit Cash Enhanced

Deutsche Cash Plus

Macquarie Diversified Treasury

Macquarie Income Plus

 

UBSWA Bank Bill Index

 

Feb

%

 

0.42

0.48

0.53

-

0.46

0.46

0.41

0.44

 

0.44

Mar

%

 

0.42

0.50

0.54

-

0.51

0.53

0.51

0.55

 

0.48

Apr

%

 

0.42

0.62

0.54

-

0.45

0.51

0.51

0.48

 

0.45

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

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

                        ***      The interest return on this investment has been estimated. Interest rates and amounts invested vary on a daily basis.

                       

 

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