2016-11-08 S&O Agenda - Item 3, Attachment 1 - Local Economic Plan

                                                                                           Financial Statements 2016



Noosa Shire Council                                                                               QA.O - -
                                                                                           certified   st<Jte~
Notes to the Financial Statements
for the year ended 30 june 2016

Note 26. Financial Instruments (continued)
                                                                                                   2016                    2015



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                                                                       52,586                 50,891
Receivables - Rates                                                                               4,337                 4,166
Receivables - Other                                                                             50,824                 50,482
Equity Investments                                                                             __6..~~111 .   ··-· "" §.?~?-~~­
                                                                                              17?.8~~ .       ·--- 1!_9.J.~1

Other Credit Exposures

Guarantee                                                                                              387    ··----·-·· ,_290
                                                                                                                            _,_,_. ._
                                                                                                       387               290

Total

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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