2017-11-07 S&O Agenda - Attachment 1 to Item 10 - Annual Report 2016-17

                                                                                                 Financial Statements 2017



Noosa Shire Council

Notes to the Financial Statements
 for the year ended 30 June 2017

Note 27. Financial Instruments (continued)
                                                                                                       2017                2016
                                                                                   l\lotes             $'000               $'000

The following table represents the maximum exposure to credit risk based
on the carrying amounts of financial assets at the end of the reporting period:

Financial Assets

Cash and Cash Equivalents                                                            8               65,463           52,586
Receivables - Rates                                                                  9                4,431            4,337
Receivables - Other                                                                  g               51,889           50,824
Equity Investments                                                                                  .?~.3}2           6~...14!.._
                                                                                                  195,115           176,888

Other Credit Exposures

Guarantee                                                                                               513                  387
                                                                                                        513                387

Total                                                                                        -    195,628           177,275
                                                                                                                =

Cash and Cash Equivalents
The Council may be exposed to credit risk through its investments in the QTC Cash Fund and QTC Working Capital
Facility. The QTC Cash Fund is an asset management portfolio that invests with a wide range of high credit rated
counterparties. Deposits with the QTC Cash Fund are capital guaranteed. Working Capital Facility deposits have
a duration of one day and all investments are required to have a minimum credit rating of "A-", therefore the
likelihood of the counterparty having capacity to meet its financial commitments is strong.

Other Financial Assets
Other investments are held with financial institutions, which are rated AAA to AA- based on rating agency
Standard and Poor's ratings, and whilst not capital guaranteed, the likelihood of a credit failure is assessed
as remote (if applicable).

Trade and Other Receivables
In the case of rate receivables, the Council has the power to sell the property to recover any defaulted amounts.
In effect this power protects the Council against credit risk in the case of defaults.

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.




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