Annual Report 2019-20

Noosa Shire Council

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

Note 30. Financial Instruments and Financial Risk Management                                         (continued)


Liquidity risk

Liquidity risk refers to the situation where the Council may encounter difficulty in meeting obligations associated
with financial liabilities that are settled by delivering cash or another financial asset. Noosa Shire Council is
exposed to liquidity risk through its trading in the normal course of business and borrowings from the Queensland
Treasury Corporation for capital works.

The Council's approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to
meet its labilities when they are due, under both normal and stressed conditions, without incurring unacceptable
losses or risking damage to the Council's reputation.

Exposure to liquidity risk
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 20.

The following table sets out the liquidity risk in relation to financial liabilities (excluding lease liabilities for 2020)
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:

                                                                                                        Total
                                                                                            contractual cash
                                               0 to 1 year   1 to 5 years    Over 5 years              flows    Carrying amount
                                                    $'000          $'000            $'000              $'000                 $'000


2020
Payables                                         7,599              -                 -            7,599                7,602
Loans - QTC                                      3,762         15,048             7,038           25,848               21,516
                                               11,361         15,048             7,038           33,447               29,118

2019
Payables                                         6,966              -                -             6,966                6,966
Loans - QTC                                      3,950         15,048           10,800            29,798               24,232
                                               10,916         15,048           10,800            36,764               31,198

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




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