Annual Report 2019-20

Noosa Shire Council

Notes to the Financial Statements
for the year ended 30 June 2020

Note 29. Events after the Reporting Period

Council is unaware of any material or significant "non adjusting events" that should be disclosed.

Note 30. Financial Instruments and Financial Risk Management
Noosa Shire Council has exposure to the following risks arising from financial instruments; (i) interest rate risk,
(ii) credit risk, and (iii) liquidity risk.
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 Council manages these exposures.
Council has reviewed its exposure to financial risk as a result of the COVID-19 pandemic, and at present does not
anticipate likelihood of increased financial risk through either the decline in credit rating of financial institutions or
increased levels of default in receivables.

Financial Risk Management
Council is responsible for the establishment and oversight of the risk management framework, together with
developing and monitoring risk management policies.
Council's management approves policies for overall risk management, as well as specifically for managing credit,
liquidity and market risk.
The Council's risk management policies are established to identify and analyse the risks faced, to set appropriate
limits and controls and to monitor these risks and adherence against limits. The Council aims to manage volatility to
minimise potential adverse effects on the financial performance of the Council.
The Council's audit committee (or other appropriate oversight body) oversees how management monitors
compliance with the Council's risk management policies and procedures, and reviews the adequacy of the risk
managements framework in relation to the risks faced by the Council. The Council audit committee (or other
appropriate oversight body) is assisted in its oversight role by internal audit. Internal audit undertakes both regular
and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit
committee (or other appropriate oversight body).

Council does not enter into derivatives.

Credit Risk Exposure
Credit risk is the risk of financial loss if a counterparty to a financial instrument fails to meet its contractual
obligations. These obligations arise principally from the Council's investments and receivables from customers.
Exposure to credit risk is managed through regular analysis of credit counterparty ability to meet payment
obligations. The carrying amount of financial assets represents the maximum credit exposure.
Investments in financial instruments are required to be made with Queensland Treasury Corporation (QTC) or
similar 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.
The carrying amounts of financial assets at the end of the reporting period represent the maximum exposure to
credit risk for the Council.




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