Administration and Finance Committee Meeting

 

  BUSINESS PAPER

 

 

 

 

 

 

 

 

Tuesday 9 June 2015

 

 

 

 

 

 

 

 

 

Administrative Centre 30 Frances Street Randwick 2031

Telephone: 1300 722 542

Fax: 02 9319 1510

 council@randwick.nsw.gov.au

www.randwick.nsw.gov.au


 

 

 

 

 

 

 

 

 

 

 

 


Administration and Finance Committee                                                                             9 June 2015

 

 

 

 

 

 

 

 

 

 

 

 


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 on Tuesday, 9 June 2015 at 6:00pm

 

Committee Members:         The Mayor (Seng), Andrews, Belleli, Bowen, D’Souza, Garcia (Deputy Chairperson), Matson, Moore, Nash, Neilson, Roberts, Shurey, Smith, Stavrinos (Chairperson) 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 - 12 May 2015

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 69 of Council’s Code of Meeting Practice.

Urgent Business

Administration Report

A6/15       Contingency Fund - as at 31 May 2015.................................. 1

Finance Reports

F9/15       Investment Report - April 2015............................................. 5

F10/15      Monthly Financial Report as at 30 April 2015........................ 13   

Notice of Rescission Motions

Closed Session (Record of Voting NOT required)

NR3/15     Rescission Motion submitted by Councillors Nash, Roberts and Stavrinos - Coogee Chamber of Commerce - Outstanding fees

This matter is considered to be confidential under Section 10A(2)(d) of the Local Government Act, as it deals with commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret.

 

 

 

 

…………………………………………………….

Ray Brownlee

General Manager


Administration and Finance Committee                                                                             9 June 2015

 

 

Administration Report No. A6/15

 

 

Subject:                  Contingency Fund - as at 31 May 2015

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 2014-15 financial year.

 

Issues

 

In the 2014-15 financial year there have been 39 allocations totalling $181,380.70 as listed in the table below.

 

Meeting

Details

Approved allocation

Annual contributions (ongoing)

Ord Council – 24 Nov 2009

Annual contribution (5 years from 2010-2014)

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

 

$10,820.00

Ord Council –

27 July 2010

&

Ord Council 23 September 2014

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

 

Annual contribution for a further 5 years – 2015-2020

$1,000.00

Ord Council – 22 Feb 2011

Annual contribution (5 years from 2011-15) - Randwick Girls High School - 'Mayor's Award'

$1,000.00

Planning Comm – 13 Mar 2012

Annual contribution – Australia Day Botany Bay Regatta

$750.00

Ord Council – 25 June 2013

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

 

$15,000.00

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)

 

-

2014-15 Contingency Fund allocations

Ord Council – 29 Apr 2014

2014 NSW Police Force International Student Beach Soccer and Volleyball Day at Coogee Beach

$4,176.34

Ord Council – 29 Apr 2014

Waiving of Fees - Open High School banners

$2,006.00

Ord Council – 27 May 2014

Financial assistance - Randwick Girls and Boys High Schools combined production

$4,000.00

Ord Council – 27 May 2014

Waiving of fees - fitness festival in Goldstein Reserve, Coogee to raise funds for Suicide Prevention Australia

$1,225.00

Ord Council – 24 June 2014

Waiving of fees – Bendigo Bank

$158.18

Ord Council – 24 June 2014

Sponsorship - UNSW joint Alzheimer’s and Parkinson’s Disease Symposium/Cell Architecture in Development and Disease Symposium

$1,000.00

Ord Council – 24 June 2014

Waiving of Fees - St George Coptic Church Fete

$885.00

Ord Council – 24 June 2014

Financial assistance – Walking Volunteers walk

$800.00

Ord Council – 24 June 2014

Waiving of fees – Salvation Army Community Lunch

$1,862.50

Ord Council – 24 June 2014

Sponsorship and waiving of fees – Surfing NSW Junior Surfing Competition

$8,500.00

Ord Council – 22 July 2014

Waiving of fees – Rainbow Club Australia – use of Town Hall

$1,500.00

Ord Council -   22 July 2014

Clovelly Better Block Project 2014

$34,800.00

Ord Council – 26 Aug 2014

Financial assistance - Randwick Petersham Cricket Club - Hosting of Cricket Ireland

$8,691.86

Ord Council – 23 Sept 2014

Financial assistance  Maroubra Village Art Show

$9,000.00

Ord Council – 23 Sept 2014

324 (City of Randwick) Squadron Australian Airforce Cadets - celebrating 60 years - purchase of a ceremonial sword and the Sword of Excellence Trophies for the next five years

$11,100.00

Ord Council – 23 Sept 2014

Waiving of fees - Maroubra Diggers Swimming Club

$1,020.00

Ord Council – 23 Sept 2014

Waiving of fees - St Marks Anglican Church – Malabar Carols by Candlelight

$2,172.00

Ord Council – 23 Sept 2014

Waiving of fees - St Pauls Anglican Church – Grant Reserve Carols by Candlelight

$1,169.00

Ord Council – 23 Sept 2014

Financial assistance - 150th Anniversary of St Jude's Church, Randwick

$1,800.00

GM – Oct 2014

Waiving of fees - PHC for Nurses' Annual Renunion Function

$3,562.72

Ord Council – 28 Oct 2014

Financial assistance – Prince of Wales Hospital Foundation – Twilight Race Meet

$5,000.00

Ord Council – 25 Nov 2014

Waiving of fees - Barnardos “1 Mile Bolt”

$3,890.00

Ord Council – 25 Nov 2014

Financial assistance - Stingless Bee Hive, Randwick Public School

$500.00

Ord Council – 24 Feb 2015

Waiving of Fees - St Margaret Mary's Primary School

$165.00

Ord Council – 24 Feb 2015

Sponsorship - Rotary Police Awards

$4,765.00

Ord Council – 24 Feb 2015

Waiving of fees - The Hon Pat Farmer's Event "Quicksand" at Maroubra Beach

$3,804.30

Ord Council – 24 Feb 2015

Waiving of fees - Eastern Beaches Local Area Command - 100 Years of Women in Policing

$4,913.80

Ord Council – 24 Feb 2015

Financial assistance - Randwick Boys and Girls High Schools 

$4,000.00

Ord Council – 24 Feb 2015

Mardi Gras Festival recognition

$827.00

GM – Feb 2015

Waiving of fees - 2015 Epiphany Festival

$5,857.00

Ord Council – 28 Apr 2015

Financial assistance - Maroubra Bay Public School - bike facilities

$3,000.00

Ord Council – 28 Apr 2015

Financial Assistance for the Victims of Nepal Earthquake

$2,000.00

Ord Council – 28 Apr 2015

Continuation of Community Partnership with Randwick District Rugby Football Club in 2015 & 

$10,000.00

 

Ord Council – 28 Apr 2015

Waiving of fees for Banner hire - Randwick District Rugby Football Club

$4,660.00

Total - 2014-15 Contingency Fund allocations

$181,380.70

2015-16 Contingency Fund allocations

Ord Council – 23 Sept 2014

POW Hospital's request for financial support to use Prince Henry Centre – to celebrate 50th year since the first kidney transplant in NSW

$3,600.00

Ord Council – 28 Apr 2015

Waiving of fees - South Maroubra Surf Club use of Des Renford Leisure Centre for the Annual Nippers Proficiency Test

$1,210.00

Total - 2015-16 Contingency Fund allocations

$4,810.00

 

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 $161,721.00 in the 2014-15 Budget for contingencies. Any expenditure that exceeds the budget allocation will be funded through savings at the end of the 2014-15 Financial Year.

 

Recommendation

 

That the status of the contingency fund allocations for 2014-15 be noted.

 

Attachment/s:

 

Nil

 

  


Administration and Finance Committee                                                                             9 June 2015

 

 

Finance Report No. F9/15

 

 

Subject:                  Investment Report - April 2015

Folder No:               F2015/06527

Author:                    Greg Byrne, Manager Financial Operations     

 

Introduction

 

The Local Government (General) Regulation requires a written report to be provided to the ordinary meeting of the Council giving details of all monies invested and a certificate as to whether or not the investments have been made in accordance with the Act, the regulations and the Council’s Investment Policy.

 

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 12 January 2011. The Local Government (General) Regulation prescribes the records that must be maintained in relation to Council’s Investment Policy.

 

The table in this report titled “Investment Register – April 2015” outlines the investment portfolio held by Council as at the end of April 2015. All investments have been made in accordance with the Act, Regulations and Council’s Investment Policy.

 

Investment Commentary

 

As at 30 April 2015, Council held investments with a market value of $63.1 million. The portfolio value decreased during April by $5.443 million. The decrease is representative of a negative cash flow for the month reflecting the net effect of revenue receipts (rates, grants & miscellaneous) offset by capital works expenditure and other operational payments.

 

The size of the investment portfolio may vary significantly from month to month as a result of cash flows for the period. Cash outflows (expenditure) are typically relatively stable from one month to another. Cash inflows (income) are cyclical and are largely dependent on the rates instalment due dates and the timing of grant payments including receipts of the Financial Assistance Grants.

 

The following graph illustrates the movement in the investment portfolio from July 2012 to April 2015. Peaks are representative of the rates instalment periods.

 

Council’s Portfolio

 

The portfolio has high levels of liquidity with 4% of investments available at call and a further 25% of assets maturing within 3 months. Council also currently has a number of senior FRNs as additional cover for liquidity requirements (access to funds within 3 business days)

 

The investment portfolio is diversified across a number of investment types and is spread across the higher rated ADIs. The various investment types may include term deposits, floating rate notes, on-call accounts and covered notes.

 

The following graph indicates the allocation of investment types held at the end of April 2015. The portfolio is dominated by term deposits with the higher rated ADI’s. Credit assets (FRNs) are around 27% of the portfolio.

 

 

The entire investment portfolio is diversified across the higher rated ADI’s (A- or higher).

 

The investment portfolio is regularly reviewed in order to maximise investment performance and minimise risk. Comparisons are made between existing investments with available products that are not part of the Council’s portfolio. Independent advice is sought on new investment opportunities.

 

Credit Quality

 

The portfolio is of very high quality from a ratings perspective. Credit quality is entirely directed amongst the higher rated ADI’s (A- or higher), in compliance with Council’s Investment Policy.

 

Council’s Investment Policy restricts allowable investments to only Prime, High Grade and Upper Medium Grade Investments. This will result in all new investments having a minimum Standard and Poors long term credit rating of A-. Council no longer invests in any products with a credit rating of BBB+ or less.

 

 

^ Under the Financial Claims Scheme (FCS), the first $250,000 is guaranteed by the Federal Government (rated AAA by S&P), per investor, per ADI

 

All of these are within Policy limits.

 

Counterparty

 

The table below shows the individual counterparty exposures against Council’s current investment policy. All limits comply with the Policy.

 

 

 

Performance

 

The following graph shows the investment returns achieved against the AusBond Bank Bill Index and the official Reserve Bank of Australia (RBA) cash interest rate for the period April 2012 to April 2015.

 

Investment performance for the financial year to date is above the industry benchmark AusBond Bank Bill Index with an average return after fees of 3.71% compared with the benchmark index of 2.46%.

 

The official Reserve Bank of Australia (RBA) cash interest rate remained at 2.25% at the April meeting. At the meeting of the RBA held on 5 May the cash rate was dropped to a historical low of 2.00%. Money markets are factoring in at least one more cut later this year.

Term Deposits

 

At month end, deposits accounted for 68% of the total investment portfolio.

No new deposits were placed in April – four deposits matured and were recalled.

 

Floating Rate Notes (FRNs)

 

The portfolio includes $17.2 million in floating rate notes.

These investments are classified as “held for trading” requiring that they are reported at the latest indicative market valuations at month end.

 

The indicative market value of the FRNs increased by ~$90k as at the end of April.

 

During the month, Council purchased $1.6M of the ANZ Bank FR TCD at +82bp trading margin.

 

Ministerial Investment Order

 

In late 2007, the NSW Government commissioned a review of NSW local government investments. The review, known as the Cole Report included eight recommendations that were all adopted by the NSW Government and incorporated into the Ministerial Investment Order dated 31 July 2008. A revised Investment Order was issued on the 12 January 2011 and includes changes that:

 

·          Remove the ability to invest in the mortgage of land;

·          Remove the ability to make a deposit with Local Government Financial Services Pty Ltd;

·          And includes the addition of “Key Considerations” with a comment that a council’s General Manager, or any other staff, with delegated authority to invest funds on behalf of the council must do so in accordance with the council’s adopted investment policy.

 

Investment Register

 

The investment register is maintained with details of each individual investment including; financial institution; amount invested; date invested; maturity date and the applicable interest rate.

Relationship to City Plan

 

The relationship with the City Plan is as follows:

 

Outcome:  Leadership in Sustainability.

Direction:  Long term financial viability is achieved.

 

Financial impact statement

 

Funds are invested with the aim of achieving budgeted income in the 2014-15 financial year and outperforming the AusBond Bank Bill Index over a 12 month period. The current budget provision for investment income from this source is $1,932,150.00. Investment income to 30 April 2015 amounted to $2,022,811.39

 

Certification – Responsible Accounting Officer

 

I hereby certify that all investments as at 30 April 2015 have been made in accordance with Council’s Investment Policy. All investments meet the requirements of s625 of the Local Government Act and the Local Government (General) Regulation.

 

Mitchel Woods

Responsible Accounting Officer

 

Conclusion

 

All investments as at April 2015 have been made in accordance with the Local Government Act, the regulations and Council’s Investment Policy.

 

Recommendation

 

That the investment report for April 2015 be received and noted.

 

 

Attachment/s:

 

Nil

 

 


Administration and Finance Committee                                                                             9 June 2015

 

 

Finance Report No. F10/15

 

 

Subject:                  Monthly Financial Report as at 30 April 2015

Folder No:               F2014/00522

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 30 April 2015. 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 30 April 2015. Attachment 3 details the cash flow of the Council as at 30 April 2015.

 

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 Manager Corporate and Financial Planning, as the Responsible Accounting Officer, advises that the projected financial position is satisfactory. The Current Ratio as at 30 April 2015 is 3.26 compared to 2.21 as at 30 June 2014. The Current Ratio is a financial indicator specific to local government and represents its ability to meet its debts and obligations as they fall due.

 

Recommendation

 

That the 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 - Income Statements April 2015

 

2.View

Monthly Financial Statements - Balance Sheet April 2015

 

3.View

Monthly Financial Statements - Cash Flow Statement April 2015

 

 

 

 


Monthly Financial Statements - Income Statements April 2015

Attachment 1

 

 






Monthly Financial Statements - Balance Sheet April 2015

Attachment 2

 

 


Monthly Financial Statements - Cash Flow Statement April 2015

Attachment 3