Annual Report 2014-15

NOOSA SHIRE COUNCIL

Notes to the financial statements
For the year ended 30 June 2015

 28 Financial instruments - continued
              Other financial assets
              Other investments are held with financial institutions, which are rated AAA to AA- based on rating Standard and Poor's
              agency ratings, and whilst not capital guaranteed, the likelihood of a credit failure is assessed as remote.

         Trade and other receivables
              In the case of rate receivables, 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, Council assesses the credit risk before providing goods or services and applies norma! 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.

              Ageing of past due receivables and the amount of any impairment is disclosed in the following table:
                                             Not past due                                                      Less            Total
                                                                31 to 60      61 to 90       Over 90          Impaired
                                                                 days           days           days
                                                  $                $             $              $                $               $

                roore o Un                                                                                         eo          sores
                Loans to Unitywater                    .             ~             -         49,217,517              .        49,217,517
                2015                                                                                                          54,647,152
               Receivables                       10,371,206       138,236        79,163        §,428,387                      16,016,992
                Loans to Unitywater                    -              -            -          49,217,517                      49,217,517
              2014                [10.57.2068 |                   Tae.z06 |     rates]        Sema]                     «| ~—C« BBO

         Liquidity risk
              Liquidity risk is the risk that the Council will encounter difficulty in meeting the obligations associated with its financial
               liabilities that are settled by delivering cash or another financial asset.

              Noosa Shire Council is exposed to liquidity risk through its normal course of business and through its borrowings
              with QTC and other financial institutions.
              The Council manages its exposure to liquidity risk by maintaining sufficient cash deposits and undrawn facilities,
              both short and long term, to cater for unexpected volatility in cash flows.
              These facilities are disclosed in note 18.

              The following table sets out thé liquidity risk in relation to financial liabilities held by the Council. It represents the
              remaining contractual cashfloWs (principal and interest) of financial liabilities at the end of the reporting period,
              excluding the impact of netting agreements:

             Consolidated                                     Oto1 year | 1toSyears | Over5 years | Total contractual]       Carrying
                                                                                                            cash flows        amount
              2015                                                 $             $              $                $               $
                  Trade and other payables                     5,338,697                                       5,338,697 |    5,338,697
                  QTC Loans                                     4,941,800 | 19,754,559       28,458,148       53,154,507     39,380,545
                                                               10,280,497 | 19,754,559       28,458,148       58,493,204     44,719,242
              2014
                  Trade and other payables                      4,075,282          -               -           4,075,282      4,075,282
                  QTC Loans                                     7,113,778 | 19,436,191       32,049,878       58,599,846     41,177,025            ,
                                                               11,189,060 | 19,436,191       32,049,878       62,675,128     45,252,307

              The outflows in the above table are not expected to occur significantly earlier than outlined and are not expected to
              be materially different amounts than indicated in the table.

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