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2022-06-28 Special Meeting Agenda
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SPECIAL MEETING AGENDA 28 JUNE 2022
Page 43 of 79
SPECIAL MEETING AGENDA 28 JUNE 2022
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.
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