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Annual Report 2020-21
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Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2021
Note 28. Financial Instruments and Financial Risk Management (continued)
In other cases, the Council assesses the credit risk before providing goods or services and applies normal business credit
protection procedures to minimise the risk.
By the nature of the Councils operations, there is a geographical concentration of risk in the Council's area.
The Council does not require collateral in respect of trade and other receivables. The Council does not have trade receivables
for which no loss allowance is recognised because of collateral.
At 30 June 2021, the exposure to credit risk for trade receivables by type of counterparty was as follows:
$ '000 2021 2020
Community Organisations 375 500
Property Charges 4,673 5,096
Fees and Charges 1,850 1,116
GST Recoverable 807 688
Associates 49,218 49,218
Other 12 12
Total 56,935 56,630
Liquidity Risk
§Subnote§
Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations associated with financial
liabilities that are settled by delivering cash or another financial asset. Noosa Shire Council is exposed to liquidity risk through
its trading in the normal course of business and borrowings from the Queensland Treasury Corporation for capital works.
The Council's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its
labilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Council's reputation.
Exposure to liquidity risk
Council is exposed to liquidity risk through its normal course of business and through its borrowings with QTC and other
financial institutions.
The Council manages its exposure to liquidity risk by maintaining sufficient cash deposits and undrawn facilities, both short
and long term, to cater for unexpected volatility in cash flows. These facilities are disclosed in Note 19.
The following lines of credit were available at the end of the reporting period:
§Subnote§
Total
contractual Carrying
$ '000 0 to 1 year 1 to 5 years Over 5 years cash flows amount
2021
Payables 7,236 – – 7,236 7,236
Loans - QTC 1,299 5,381 20,180 26,860 21,213
8,535 5,381 20,180 34,096 28,449
2020
Payables 7,599 – – 7,599 7,602
Loans - QTC 3,762 15,048 7,038 25,848 21,516
11,361 15,048 7,038 33,447 29,118
The outflows in the above table are not expected to occur significantly earlier and are not expected to be for significantly
different amounts than indicated in the table.
continued on next page ... Page 44 of 61
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