2019-11-12 S&O Agenda - Item 11 - Attachment 1 - Draft Noosa Council 2018-19 Annual Report

                                                                                                        Financial Statements 2019



Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2019

Note 30. Financial Instruments (continued)
                                                                                                2019              2018
                                                                                 Notes          $'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                                                          9          55,981             64,193
Receivables - Rates                                                                10          4,461              4,420
Receivables - Other                                                                10         51,922             51,776
Equity Investments                                                                 24         83,342             78,377
                                                                                            195,706          198,766

Other Credit Exposures

Guarantee                                                                          21             801              656
                                                                                                 801               656

Total                                                                                       196,507          199,422

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.

The Council does not require collateral in respect of trade and other receivables. The Council does not have trade
receivables for which no loss allowance is recognised because of collateral.




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