2014-07-28 General Committee Agenda

GENERAL COMMITTEE MEETING AGENDA                                                       28 JULY 2014


The CBA cash management interest bearing account is used currently as an effective buffer to
cater for short term and unexpected cash flow requirements, given the relative ease to transfer
funds from Council’s general operating account. The logistics of not utilising a cash management
account in some form for short term investment would prove costly for Council, as the QTC
capital guaranteed cash management account is not intended to be used as a daily transactional
account, but more for longer periods (+30 days) and term deposit contracts with third party
agencies cannot be easily broken, and to do so may incur penalties.

As rates revenue is received, and longer term cash flow requirements have been determined to
satisfy operational and capital works requirements, longer term investments with third party
agencies will be investigated in accordance with the provisions of Council’s investment policy.
This will likely result in investment opportunities with other financial institutions and products than
those currently in place (i.e. CBA and QTC), whilst still ensuring that overall returns can be
maximised where possible.

Previous Council Consideration

Nil

Finance & Risk

From a logistical perspective, changing banking service providers can be significant for an
organisation. As well as a tender process, there are the logistical issues associated with
EFTPOS, direct debits, etc. Typically, the process would take a minimum of 6 months (typically
6-12 months for full implementation of a change in provider), and would need to be managed
around rate notice periods to ensure a minimum impact on Council’s external customers and
ratepayers.

Consultation

External Consultation - Community & Stakeholder

Nil

Internal Consultation

Nil

Departments/Sections Consulted:

      Community Services                             Planning & Infrastructure
      Disaster Management & Public Order             Building & Plumbing Services
      Waste & Environmental Health                   DA Planning
      Community Facilities                           Strategic Land Use Planning
      Cultural Facilities                            Asset Design & Investigations
                                                     Asset Planning
                                                     Civil Operations
                                                     Environment

x     Executive Office                          x    Corporate Services
      Community Engagement                           Finance
      Customer Service                               ICT
      Executive Support                              Procurement & Fleet
      Governance                                     Property & Facilities
      Human Resources                           x    Revenue Services




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