2026/27 FINANCIAL POLICIES · Attachment 9 - Management of Restricted Cash Policy

 Attachment 9 – Management of Restricted Cash Policy

Waste Management and Landfill Rehabilitation

Council applies the Code of Competitive Conduct to Waste Management activities, and to support
this 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 asset management and long-term financial planning principles.

Accordingly, unspent funds will be constrained to meet future business strategy and landfill
rehabilitation obligations.

Holiday Parks and Other Commercial Activity

Council applies the Code of Competitive Conduct to its Holiday Parks, and to support this Council
undertakes a full cost pricing model for determining charges to apply for operations, which includes
allocation of funds for future replacement of assets in accordance with asset management and long-
term financial planning principles.

Accordingly, unspent funds will be constrained to meet future business strategy obligations.

Plant Replacement

To ensure sufficient funds are available to finance the ongoing replacement of Council’s plant and
fleet, any operational surplus from fleet activities will be constrained to provide for expenditure in a
future period.

Liquidity Management (unrestricted cash expense cover)

The unrestricted 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.

Unexpended Loans
Loans are raised each year for specific projects as outlined in Council’s debt policy, adopted with the
annual budget. Any unspent funds will be constrained for application against the original projects
identified in the budget and expended in subsequent financial years.

ROLES AND RESPONSIBILITIES

Councillors
Councillors will consider and adopt the Policy.

Chief Executive Officer (CEO) and Executive Team
The CEO and Executive Team will endorse for Council adoption and provide leadership and
commitment in complying with the Policy and relevant legislation and documents.


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