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

 

3rd August, 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, 10TH AUGUST, 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 20TH APRIL, 2004, 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, 13TH JULY, 2004.

 

3           Addresses to Committee by the Public

 

4           Mayoral Minutes

 

5           Finance

 

5.1                        

DIRECTOR GOVERNANCE, MANAGEMENT & INFORMATION SERVICES’ REPORT 20/2004 – INVESTMENT OF COUNCIL FUNDS AS AT 30 JUNE 2004.

2

 

 

6           General Business

 

7           Notice of Rescission Motions

 

…………………………….

ACTING GENERAL MANAGER


 

Director Governance, Management & Information Services' Report 20/2004

 

 

SUBJECT:

INVESTMENT OF COUNCIL FUNDS AS AT 30 JUNE 2004

 

 

DATE:

19 July, 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 June 2004” and in the attached graphs

 

CONCLUSION:

 

All surplus cash has been invested as at 30 June 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. 20/2004 dated 19 July 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 June 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 June 2004

 

Investment Manager

 

Credit

Ratings

 

Amount Invested

 

 

Interest  Earned

June

 

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

1,191,849

21,533

0.42

5.15

0.45

124,439

N/A

5.30

124,439

N/A

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

LGFS Expanded Credit Facility

Af

7,621,904

41,404

0.55

6.87

0.45

321,903

6.14

5.30

321,903

N/A

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

CBA Series 12

AA

4,000,000

21,491

0.54

6.48

0.45

208,863

6.48

5.30

208,863

N/A

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

CBA Series 24

AA

997,070

 

(2,930)

(0.46)

(5.67)

0.45

 

(2,930)

N/A

 

5.30

 

(2,930)

N/A

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CBA Series 24

AA

2,500,000

 

12,899

0.58

6.98

0.45

 

12,899

6.98

5.30

 

12,899

N/A

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

UBS Credit Cash Enhanced

Af

6,989,329

32,137

0.46

5.77

0.45

559,211

5.99

5.30

559,211

5.99

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

Deutsche Cash Plus

Af

7,778,805

36,090

0.47

5.82

0.45

597,606

6.08

5.30

597,606

6.08

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

Macquarie Diversified Treasury

Af

6,504,406

31,442

0.49

6.07

0.45

497,733

5.88

5.30

497,733

5.88

5.30

 

 

 

 

 

 

 

 

 

 

 

 

 

Macquarie Income Plus

Af

5,114,684

25,834

0.51

6.35

045

 

114,684

N/A

5.30

114,684

N/A

5.30

 

 

 

 

 

Index %

 

 

 

 

 

 

 

 

 

42,698,048

219,900

 

5.64

 

2,434,408

 

 

2,434,408

 

 

            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 June 2004                                                                                  221,926

                                                                                                 

For 2003/2004 to 30 June –                                                          2,477,131

                                                                                                  

 

 

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

Commonwealth Shield Series 24

UBS Credit Cash Enhanced

Deutsche Cash Plus

Macquarie Diversified Treasury

Macquarie Income Plus

 

UBSWA Bank Bill Index

 

Apr

%

 

0.42

0.62

0.54

-

-

0.45

0.51

0.51

0.48

 

0.45

May

%

 

0.42

0.41

0.54

(0.41)

-

0.51

0.49

0.46

0.49

 

0.47

June

%

 

0.42

0.55

0.54

(0.46)

0.58

0.46

0.47

0.49

0.51

 

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