Administration and Finance Committee Meeting

 

  BUSINESS PAPER

 

 

 

 

 

 

 

 

 

 

 

Tuesday 8 October 2013

 

 

 

 

 

 

 

 

 

Administrative Centre 30 Frances Street Randwick 2031

Telephone: 02 9399 0999 or

1300 722 542 (for Sydney metropolitan area)

Fax:02 9319 1510

general.manager@randwick.nsw.gov.au

www.randwick.nsw.gov.au


 

 

 

 

 

 

 

 

 

 

 

 


Administration and Finance Committee                                                                   8 October 2013

 

 

 

 

 

 

 

 

 

 

 

 

 


Administration and Finance Committee Meeting

 

Notice is hereby given that a Administration and Finance Committee Meeting of the Council of the City of Randwick will be held in the Council Chamber, First Floor, 90 Avoca Street, Randwick, 30 Frances Street, Randwick,

on Tuesday, 8 October 2013 at 6:00pm

 

Committee Members:           The Mayor (S Nash), Andrews, Belleli, Bowen, D’Souza, Garcia (Deputy Chairperson), Matson, Moore, Neilson, Roberts (Chairperson), Seng, Shurey, Smith, Stavrinos and Stevenson.

 

Quorum:                           Eight (8) members

 

NOTE:    At the Extraordinary Meeting held on 28 September 2004, the Council resolved that the Administration and Finance Committee be constituted as a committee with full delegation to determine matters on the agenda.

Apologies/Granting of Leave of Absences 

Confirmation of the Minutes  

Administration and Finance Committee Meeting - 10 September 2013

Declarations of Pecuniary and Non-Pecuniary Interests

Address of Committee by Members of the Public

Privacy warning;

In respect to Privacy & Personal Information Protection Act, members of the public are advised that the proceedings of this meeting will be recorded for the purposes of clause 66 of Council’s Code of Meeting Practice.

Urgent Business

Administration Report

A9/13       Contingency Fund - status as at 31August 2013....................................... 1

Finance Reports

F13/13      Investment Policy................................................................................ 3

F14/13      Monthly Financial Report as at 31 August 2013........................................ 19    

Notice of Rescission Motions

Nil 

 

…………………………………………………….

Ray Brownlee

General Manager


Administration and Finance Committee                                                                   8 October 2013

 

 

Administration Reports No. A9/13

 

 

Subject:                  Contingency Fund - status as at 31August 2013

Folder No:                   F2004/07396

Author:                   Julie Hartshorn, Senior Administrative Coordinator     

 

Introduction

 

The purpose of this report is to detail the progressive amount of donations, allocations, waiving of fees and other similar contributions for the 2013-14 financial year.

 

In the 2013-14 financial year there have been 22 allocations totalling $91,296.11 as listed in the table below.

 

Meeting

Details

Approved allocation

Annual contributions (ongoing)

Ord Council – 24 Nov 2009

Annual contribution (5 years from 2010-2015)

Waiving of fees – Rainbow Club Australia – Ocean Swim (Maroubra to Little Bay)

 

$10,820.00

Ord Council

17 Sept 2013

Annual Contribution (5 years from 2016-2020) Waiving of Fees – Rainbow Club Australia Inc – Murray Rose’s Malabar Magic Ocean Swim ($14,500 per annum from 2016)

 

-

Ord Council –

27 July 2010

Annual contribution (5 years from 2010-11) - Randwick Boys High School - 'Mayor's Award'

$1,000.00

Ord Council – 22 Feb 2011

Annual contribution (5 years from 2010-11) - Randwick Girls High School - 'Mayor's Award'

$1,000.00

Ord Council – 25 June 2013

Annual contribution Sponsorship of the Westpac Rescue Helicopter Lifesaver Service – 3 year agreement commencing 2013-14

 

$15,000.00

Planning Comm – 13 Mar 2012

Annual contribution – Australia Day Botany Bay Regatta

$750.00

2013-14 Contingency Fund allocations

Ord Council – 25 June 2013

13th Annual Des Renford Chair of Hearts Research Family Gala and Charity Day

$8,500.00

Ord Council – 25 June 2013

Maroubra Surfing Walk of Fame – community event

$14,000.00

Ord Council – 25 June 2013

Waiving of fees and sponsorship - Surfing NSW Junior Titles contest

$11,000.00

Ord Council – 23 July 2013

Sponsorship - Maroubra Junction Public School’s Centenary Cookbook

$500.00

Ord Council – 23 July 2013

Waiving of fees - St Nicolas' Anglican Church, Coogee - Carols by Candlelight

$1,347.00

Ord Council – 23 July 2013

Advisory Group lunch - Prince of Wales Hospital proposed new Hybrid Operating Suite

$1,800.00

Ord Council – 23 July 2013

Sponsorship  and waiving of fees - NSW Police Force Brazillian Beach Soccer Event - Coogee Beach

$4,018.10

Ord Council – 23 July 2013

Support for the Better Block project proposed for Clovelly Road

$7,700.00

 

Ord Council – 23 July 2013

Community forum and presentation with UNSW Expert Reference Group on environmental issues

$4,500.00

Ord Council – 27 Aug 2013

Waiving of fees - Maroubra Diggers Junior Swimming Club - two Swimming Carnivals at DRLC

$1,020.00

Ord Council – 27 Aug 2013

Waiving of fees - Maroubra Swim Clubs Annual Development Carnival DRLC

$780.00

Ord Council – 27 Aug 2013

Sponsorship - 2013 National Indigenous Tertiary Education Student Games - UNSW team

$500.00

Ord Council – 27 Aug 2013

Sponsorship - La Perouse Netball Team – Sydney Aboriginal Netball Carnival

$500.00

Ord Council – 17 Sept 2013

Financial assistance - Ride for Life

$3,798.77

Ord Council – 17 Sept 2013

Financial assistance - Coogee Minnows 50th Anniversary

$1,191.24

Ord Council – 17 Sept 2013

Waiving of Fees – St Mark’s Anglican Church – Carols by Candelight

$1,721.00

Ord Council – 17 Sept 2013

Financial assistance - Tasnim Ahsan Sydney Girls High School

$350.00

Total - 2013-14 Contingency Fund allocations

$91,296.11

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 2:           A vibrant and diverse community.

Our community will be proud to be part of our City and celebrate its range of cultures and people.

Direction 2b:         Enrich our range of community services that meet our community’s needs.

Key Actions:         Support the provision of services and facilities to meet the needs of our Target Groups and celebrate the range of cultures and people within Randwick City.

 

Financial impact statement

 

Council has allocated $75,796 in the 2013-14 Budget for contingencies. This amount will be adjusted, as necessary, as part of the September quarterly budget review.

 

Recommendation

 

That the report be received and noted.

 

Attachment/s:

 

Nil

 

  


Administration and Finance Committee                                                                   8 October 2013

 

 

Finance Report No. F13/13

 

 

Subject:                  Investment Policy

Folder No:                   F2004/06527

Author:                   Greg Byrne, Manager Financial Operations     

 

Introduction

 

Council’s investments are regularly reviewed by Council’s Internal Audit Committee (IAC). The IAC have recommended that Council consider tightening the credit quality of Council’s investment portfolio.

 

Issues

 

The current investment policy identifies a range of investment classes from Prime and High Grade investments down to Highly Speculative. Investment returns are generally inversely proportional to the credit rating or risk of the investment product. The higher the investment class or rating of the product, the lower the investment returns.

 

The credit guidelines used by Council in the monthly investment report reference the Standard & Poors (S&P) rating system criteria and format. The current policy restricts investments to a minimum of BBB. This rating falls into the Lower Medium Investment Grade.

 

Ratings in no way guarantee the investment or protect Council against investment losses. The prescribed ratings should not be misinterpreted as an implicit guarantee of investments or entities that have such ratings. Even given this challenge, ratings provide the best independent information available.

 

To provide an extra tier of security, it is recommended that the Investment Policy be updated to restrict allowable investments to only Prime, High Grade and Upper Medium Grade investments. This will result in all new investments having a  minimum S&P long term credit rating of A-. Council will no longer invest in any products with a credit rating of BBB+ or less.

              

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome:  1.     Leadership in Sustainability.

Direction:  1c.   Long term financial viability is achieved.

 

Financial impact statement

 

The proposed changes to the Investment Policy will result in an increase in the credit quality of Council’s investment portfolio. There may be a slight decrease in investment returns resulting from no new investments in the Lower Medium Grade class, however the maximum cap on BBB investments was only 20%.

 

Conclusion

 

The updated policy is attached for consideration/adoption.

 

 

Recommendation

 

That the attached Investment Policy be adopted.

 

 

Attachment/s:

 

1.View

Investment Policy

 

 

 

 


Investment Policy

Attachment 1

 

 















Administration and Finance Committee                                                                   8 October 2013

 

 

Finance Report No. F14/13

 

 

Subject:                  Monthly Financial Report as at 31 August 2013

Folder No:                   F2013/00406

Author:                   Oliver Guo, Management Accountant     

 

Introduction

 

Section 202 of Local Government (General) Regulation 2005 requires that the responsible accounting officer of a council must:

a)     establish and maintain a system of budgetary control that will enable the council’s actual income and expenditure to be monitored each month and to be compared with the estimate of the council’s income and expenditure, and

b)     if any instance arises where the actual income or expenditure of the council is materially different from its estimated income or expenditure, report the instance to the next meeting of the council.

 

Issues

 

This report provides the financial results of the Council as at 31 August 2013. Attachment 1 summarises the Council’s financial performance and its source and application of funds. It also summarises the operating result for each of the Council’s principal activities. Attachment 2 details the financial position of the Council as at 31 August 2013.

 

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome 1:     Leadership in Sustainability.

Direction 1b:    Council is a leader in the delivery of social, financial and operational activities.

 

Financial impact statement

 

There is no direct financial impact for this matter.

 

Conclusion

 

The Council’s Director Governance and Financial Services, as the Responsible Accounting Officer, advises that the projected financial position is satisfactory. The Current Ratio as at 31 August 2013 is 2.56 compared to 2.28 as at 30 June 2013. The Current Ratio is a financial indicator specific to local government and represents its ability to meet its debts and obligations as the fall due.

 

 

Recommendation

 

That Administration and Finance Committee acknowledges that the Responsible Accounting Officer has advised that the projected financial position of Council is satisfactory.

 

 

 

 

Attachment/s:

 

1.View

Monthly Financial Statements - August 2013 Income Statements

 

2.View

Monthly Financial Statements - August 2013 Balance Sheet

 

 

 

 


Monthly Financial Statements - August 2013 Income Statements

Attachment 1

 

 






Monthly Financial Statements - August 2013 Balance Sheet

Attachment 2