2021-06-30 Special Meeting Agenda

SPECIAL MEETING AGENDA   30 JUNE 2021




                         Page 28 of 67

SPECIAL MEETING AGENDA                                                                   30 JUNE 2021

  COUNCIL POLICY - MANAGEMENT OF RESTRICTED CASH

  Waste Management Landfill Rehabilitation
  Council undertakes a full cost pricing model for determining charges to apply for waste management
  operations, which includes allocation of funds for future rehabilitation and replacement of assets in
  accordance with a long term financial forecast. Accordingly, unspent funds will be constrained to
  meet future business strategy and landfill rehabilitation obligations.
  Plant Replacement
  To ensure sufficient funds are available to finance the ongoing replacement of Council’s plant and
  fleet, any operational surplus or unexpended depreciation amount from fleet activities will be
  constrained to provide for expenditure in a future period.
  Liquidity Management (cash expense cover)
  The cash expense cover ratio is a key indicator utilised to measure Council liquidity (i.e. current
  financial health) and to also assess ongoing financial sustainability risk. This ratio calculates how
  long Council can continue paying its day-to-day expenses from cash at bank without needing
  additional cash flow injections. Council will target achieving a minimum cash expense cover of three
  months operating expenditure held as restricted cash in any given financial year.
  Other Specific Purpose
  Council budgets annually for a range of anticipated costs for legal and insurance claims that are part
  of normal operational activities. Any unspent portion of these budgets will be constrained to provide
  for unforeseen future risks as they arise.
  Separate accounts within this category will also be maintained for stand-alone activities subject to
  external funding, such as Noosa Community Care.
  ROLES AND RESPONSIBILITIES

  The Director Corporate Services is Policy owner and responsible for oversight of the financial
  management of Council.
  The Manager Financial Services has operational responsibility for the development of Council’s long
  term financial forecast and annual budget, and for oversight of Council’s treasury function including
  cash management.
  RELEVANT LEGISLATION

  There are no specific legislative requirements around the adoption of a formal policy regarding the
  restriction of cash, however, where unspent funds are derived from special rates and charges,
  specific grants, or developer contributions, the funds can only be allocated for the original purpose.

                                                                                         Page 28 of 67