Annual Report 2020-21

Noosa Council
Notes to the Financial Statements
for the year ended 30 June 2021

Note 9. Cash, Cash Equivalents and Financial Assets (continued)
$ '000                                                                                                2021               2020

Retricted Cash and Cash Equivalents

Council's cash and cash equivalents are subject to a number of internal and external restrictions that limit amounts available
for discretionary or future use. These include:

(i) Externally imposed expenditure restrictions at the reporting date relate to the
following cash assets:

Unspent Government Grants and Subsidies                                                              4,878              2,624
Unspent Levy Funds                                                                                   5,208              6,696
Unspent Developer Contributions                                                                      1,978                768
Unspent Carbon Tax                                                                                       –                502
Total Externally Imposed Restrictions on Cash Assets                                                12,064             10,590

(ii) Internal allocations of cash at the reporting date:
Internal allocations of cash may be lifted by a Council with a resolution.

Future Asset Replacement                                                                             4,197                840
Natural Disaster Rehabilitation                                                                      2,610              2,558
Waste Management                                                                                     2,073              1,328
Specific Purpose Recurrent                                                                           1,543              1,489
Total Internally Allocated Cash                                                                     10,423              6,215

Total Unspent Restricted Cash                                                                      22,487             16,805
Cash and deposits at call are held in the Commonwealth Bank in a normal business cheque account.

On call accounts are also held with QTC. Deposits at call earned variable interest over varying terms at interest rates of
between 0.00% and 1.04%.

Investments
Term deposits with a maturity date greater than three months post reporting date are treated as investments, with deposits
of less than three months being reported as cash equivalents.



Note 10. Receivables

Receivables, loans and advances are amounts owed to Council at year end. They are recognised at the amount due at the
time of sale or service delivery or advance. Settlement of receivables is required within 30 days after invoice is issued. Terms
for loans and advances are usually a maximum of five years with interest charged at non-commercial rates. Security is not
normally obtained.

Debts are regularly assessed for collectability and allowance is made, where appropriate, for impairment.

All known bad debts were written-off at 30 June. If an amount is recovered in a subsequent period it is recognised as revenue.

The loss is recognised in finance costs. The amount of the impairment is the difference between the asset’s carrying amount
and the present value of the estimated cash flows discounted at the effective interest rate.

Subsequent recoveries of amounts previously written off in the same period are recognised as finance costs in the Statement
of Comprehensive Income.

Because Council is empowered under the provisions of the Local Government Act 2009 to sell an owner's property to recover
outstanding rate debts, Council does not impair rate receivables.




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