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Annual Report 2023-24
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Noosa Council Noosa Council
Financial Performance
Notes to the Financial Statements Notes to the Financial Statements
for the year ended 30 June 2024 for the year ended 30 June 2024
Note 27. Reconciliation of Net Result for the year to Net Cash Inflow/(Outflow) from Note 29. Financial Instruments and Financial Risk Management
Operating Activities §Note/Subtotal§
§Subnote§
Noosa Shire Council has exposure to the following risks arising from financial instruments; (i) credit risk, (ii) liquidity risk, and
§Note/Subtotal§
§Subnote§
$ '000 2024 2023
(iii) market risk.
Net Operating Result from Income Statement 46,822 16,763 This note provides information (both qualitative and quantitative) to assist statement users evaluate the significance of financial
instruments on the Council's financial position and financial performance, including the nature and extent of risks and how the
Non-Cash items Council manages these exposures.
Depreciation and Amortisation 22,170 19,964
Council has reviewed its exposure to financial risk and at present does not anticipate likelihood of increased financial risk
Non-Cash Capital Contributions (1,767) (451) through either the decline in credit rating of financial institutions or increased levels of default in receivables.
20,403 19,513
Financial Risk Management
§Subnote§
Losses/(Gains) recognised on fair value re-measurements through the Income
Statement
Investment Properties 250 (700) Council is responsible for the establishment and oversight of the risk management framework, together with developing and
Movement in Restoration Provisions monitoring risk management policies.
529 8,799
779 8,099 Council's management approves policies for overall risk management, as well as specifically for managing credit, liquidity
and market risk.
Investing and Development Activities
Loss on write-off of assets 19,916 8,922 The Council's risk management policies are established to identify and analyse the risks faced, to set appropriate limits and
Capital Grants and Contributions (35,448) (39,736) controls and to monitor these risks and adherence against limits. The Council aims to manage volatility to minimise potential
Share of Net (Profits)/Losses of Associates (6,490) (5,846) adverse effects on the financial performance of the Council.
Impairment of Receivables and Bad Debts Written Off 28 4
Interest Expense capitalised in QTC loans The Council's Audit and Risk Committee (ARC) oversees how management monitors compliance with the Council's risk
670 697
management policies and procedures, and reviews the adequacy of the risk managements framework in relation to the risks
(21,324) (35,959) faced by the Council. The ARC is assisted in its oversight role by internal audits conducted by external consultants, the results
of which are reported to the ARC. Council's internal audit register, which is approved by the ARC, details target areas and
Changes in Operating Assets and Liabilities:
252 the timing for the completion of internal audits. 253
(Increase)/Decrease in Receivables (4,118) (379)
(Increase)/Decrease in Inventories (39) (56) Council does not enter into derivatives.
(Increase)/Decrease in Contract Assets (6.004) (958)
(Increase)/Decrease in Other Assets 2,326 2,780 Credit risk
§Subnote§
Increase/(Decrease) in Payables 2,417 (7,602)
Increase/(Decrease) in Contract Liabilities (16,476) 20,813 Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contractual obligations. These
Increase/(Decrease) in Employee Leave Entitlements 907 1,350 obligations arise principally from the Council's investments and receivables from customers.
Increase/(Decrease) in Other Liabilities (1,869) 53
Exposure to credit risk is managed through regular analysis of credit counterparty ability to meet payment obligations. The
(22,856) 16,001 carrying amount of financial assets represents the maximum credit exposure.
Net Cash provided from/(used in) Operating Activities from the Investments in financial instruments are required to be made with Queensland Treasury Corporation (QTC) or similar
Statement of Cash Flows 23,824 24,417 State/Commonwealth bodies or financial institutions in Australia, in line with the requirements of the Statutory Bodies Financial
Arrangements Act 1982.
No collateral is held as security relating to the financial assets held by Noosa Shire Council.
Note 28. Events after the Reporting Period
§Note§
§Subnote§
The carrying amounts of financial assets at the end of the reporting period represent the maximum exposure to credit risk
for the Council.
Council is unaware of any material or significant "adjusting" or "non adjusting events" that should be disclosed. 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
Noosa Council Annual Report 23/24
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 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).
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.
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